Calgary, AB, Jan. 18, 2001MAXIM Power Corp. announced that it has entered into an agreement with ETHO Power Corporation that will see MAXIM make a strategic investment of $1,500,000 in ETHO Power in exchange for common shares and warrants representing a minimum 13% of the company.
Etho Power has developed a proprietary biomass electricity generating system which utilises gasifiers, heat exchangers and air turbines. These systems can use a wide range of biomass fuels while exceeding world's best emissions practices. This technology also removes the steam turbine systems with which traditional biomass plants operate. As a result, the Etho Power technology is more efficient, produces less emissions and is less expensive than traditional biomass systems.
Under the agreement, MAXIM will have an exclusive license for the utilization of the biomass to electricity and/or thermal recovery technology in Mexico, the Caribbean and Central and South America, and will co-market with ETHO Power globally as a provider of "Build, Own Operate" services for purchasers of the Etho Power systems.
"ETHO Power's creative technological developments, from gasifiers to innovative power systems utilizing heat exchangers and air turbines, parallel MAXIM's business approach of providing Creative Energy Solutions. The synergy created through this investment will see both companies continuing to excel in the distributed power industry", said Mr. Rick Hopp, Senior Vice President, Business Development with MAXIM Power Corp.
A demonstration project of ETHO Power's biomass system, funded by the British Columbia provincial government, BC Hydro & Power Authority, and the National Research Council of Canada, is currently under construction in Kelowna, British Columbia and will be operational during the first quarter of 2001.
Based in Calgary, Alberta, MAXIM provides innovative power generation and cogeneration solutions in domestic and international energy markets. MAXIM currently owns and operates over 20 MW of generating capacity in Canada, Europe and Asia. MAXIM trades on the Canadian Venture Exchange under the symbol "JPC". The trading symbol will be changed to "MXN" shortly. For more information about MAXIM, visit its web site at www.maximenergy.com.