Premier announces new Sault tire-recycling plant

Premier Dalton McGuinty is in Sault Ste. Marie today.

At this hour, he's with Sault MPP David Orazietti at the Roberta Bondar Building downtown, announcing a $2 million Northern Ontario Heritage Fund grant to Ellsin Environmental Ltd. to test a patented process for reclaiming used tires.

The company will establish a test plant here in Sault Ste. Marie.

The premier will also attend the launch of Essar Steel's co-generation facility this afternoon.

Here's the offcial announcement about Ellsin Environmental.

Beneath it, SooToday.com has posted a news release issued late last month by another company, Environmental Waste International Inc., that reveals more about the Ellsin initiative.

************************* McGuinty government helps tire processing facility create jobs

A new processing technology in Ontario will create new jobs and provide a cleaner method for reclaiming used tires.

The Northern Ontario Heritage Fund Corporation (NOHFC) is investing $2 million to help Ellsin Environmental Ltd. establish a plant to test a patented process for reclaiming used tires.

As many as 25 jobs will be created when the Sault Ste. Marie plant launches.

The plant will use new green technology that breaks scrap tires down into their original components - carbon black, gas, oil and steel.

Some of the recovered materials can potentially be used to generate power.

With environmental approvals, the funding for this project would be provided under the NOHFC Enterprises North Job Creation Program.

The program invests in private sector projects to help bring new jobs and economic prosperity to the North.

Quotes Supporting new technologies and creating green jobs is the right thing to do for our economy and our environment. Projects like this one put Ontario at the cutting edge of green tech, while ensuring that used tires are managed in an environmentally responsible way.

– Dalton McGuinty Premier of Ontario

Establishing this innovative new business in our city will help foster job creation and further establish Sault Ste. Marie as a leader in green technology. This initiative will offer new options to manage existing tire disposal and environmental challenges.

- David Orazietti MPP for Sault Ste. Marie

************************* Quick facts

- There are currently more than 2.8 million used tires stockpiled across the province.

- Ontario Tire Stewardship is an industry-funded program launching on September 1 to deal with the more than 12 million used tires generated in Ontario each year.

- Used tires can be recycled into a variety of products including: rubber flooring, interlocking patio bricks, roofing shingles, livestock feeders and troughs, landscape mulch, belts and guitar straps, parts for new vehicles and rubberized asphalt to pave streets and highways.

************************** Environmental Waste International receives order for prototype tire system

AJAX, ONTARIO - Environmental Waste International Inc. (EWI) (CDNX:EWS.V - News) through its 100 percent owned subsidiary, EWI Rubber Inc. (EWIR) has received an order to develop a prototype tire system from Ellsin Environmental Ltd (Ellsin), a private Canadian corporation.

Under a signed prototype agreement, EWIR will build a TR900 system for $4.175 million, about 80 percent of the $5.25 million total project cost.

Based on EWI's patented Reverse Polymerization(TM) process, the system is designed to break down at least 900 tires per day and recover carbon black, oil and steel, while producing its own power from the off-gases.

The TR900 will serve as a showpiece for EWIR's tire technology.

As part of the agreement, EWIR will grant Ellsin all available territorial rights for the TR technology in Canada and the United States, subject to future performance requirements.

The order culminates months of collaboration between EWIR and Ellsin.

Ellsin is financing the project from private investors, an Ontario provincial funding program and EWI (as indicated below).

Ellsin has made a $50,000 non-refundable deposit and must deliver an additional $1,150,000 in the next four weeks in order to proceed with the contract.

Once the full deposit has been received, EWIR will begin the engineering and manufacture of the TR900 while assisting Ellsin with its permit and site preparations.

The project should be completed in about 12 months.

EWI has negotiated the purchase of a 37.5 percent equity interest in Ellsin.

EWI will finance the purchase through a share placement with Ellsin's investors.

The placement, subject to TSXV approval and a hold period, is for up to six million units at $0.15 per unit.

Each unit will include one common share of EWI and a two-year warrant that will entitle the holder to purchase an additional share at $0.20 per share.

EWI has designed systems for the sterilization of medical and animal waste, liquid waste and food waste as well as the breakdown of several other organic materials including tires.

EWI continues to work on designs for other applications.

Please visit EWI's home page at: www.ewmc.com

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