Canadian Hydro’s CG&E to build 25 MW power plant

CALGARY, ALBERTA, July 6, 2001 — Canadian Gas & Electric Inc. and Canadian Forest Products Ltd. have entered into an agreement to construct a 25 MW wood residue fueled power facility adjacent to Canfor’s Grande Prairie, Alberta lumber mill.

The facility will produce electrical and steam energy from wood waste that is currently being incinerated. Canfor will utilize approximately 40% of the produced energy at their Alberta operations, with the balance being available for sale to other customers and the spot market.

“This showcase facility will provide a long term stable energy supply to Canfor for its Alberta operations. The project will have a major economic impact on the City of Grande Prairie through the creation of over 20 new temporary and permanent jobs for its residents. There is also the potential to develop a unique opportunity to provide district heating for local buildings”, says CG&E President Guido Bachmann.

“Canfor has made significant progress in minimizing the wood waste generated at our facilities while we continue to research value added applications for its use,” said Chris Andersen, General Manager Alberta and Peace Region. “This project eliminates the cost to Canfor of disposing of the wood waste and it creates value for the company in the form of needed energy which will help further reduce and stabilize our operating costs.”

CG&E is currently applying for permits, ordering equipment and starting some preliminary construction work. Subject to financing, the major construction activity will take place during 2002 with an anticipated completion date late in 2002.

Canadian Gas & Electric is an Alberta based independent power producer committed to the development of environmentally responsible thermal power facilities. Its parent company, Canadian Hydro Developers, Inc., is a premier Canadian renewable energy producer with 11 power stations producing over 60 megawatts of electricity from wind and low-impact hydro power facilities. Canadian Hydro is committed to the concept of low-impact power generation. Through its wind, run-of-river hydro, and gas-fired facilities, Canadian Hydro is demonstrating that commitment to the benefit of the environment and its shareholders.