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PEAT RESOURCES LIMITED |
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Trading Symbol: PET-TSX Venture Exchange Date: September 19, 2005 Peat Resources Limited (the “Company”) is pleased to announce additional results from its development program on the peatlands of northwestern Ontario. The Company’s goal is to produce high quality peat fuel for use in electricity generating stations and other facilities requiring economically and environmentally attractive energy sources. As previously reported, over 20 million tonnes of fuel-grade peat (peat at 10% moisture content) have been outlined on the 200,000 hectare property centred on Upsala, about 130 km northwest of Thunder Bay. This resource will sustain 20 years’ production at 1 million tonnes a year. Part of the work on the Company’s property has involved a field measurement program to identify the net levels of greenhouse gas emissions from the peatlands. Peatlands form one of the largest carbon pools in the terrestrial biosphere representing a long-term sink for atmospheric carbon dioxide (CO2), but are also sources of atmospheric methane (CH4). Methane has 23 times more effect as a greenhouse gas than CO2 . A net reduction of emission of greenhouse gases, such as methane, produces tradeable credits that can be an additional revenue source for energy-related projects. For example, the Canadian government has established a cap for industry of $15 per tonne CO2 equivalent. Trading of these credit units in Europe during the past 30 days has actually been in the $30 - $35 range (see www.pointcarbon.com). The methane program, conducted in July-August 2005 by SENES Consultants Limited, included 74 monitoring stations on three different peat bogs that were representative of the 17,000 hectares of prospective peatlands on the property. Preliminary analysis of the results indicates that peat harvesting at these sites would reduce methane emissions and lead to a net reduction of greenhouse gas emissions of 0.9 to 3.0 tonnes (CO2 equivalent) per hectare per year. Dependent on peat depth and harvesting methods, annual production of 1 million tonnes of peat fuel requires extraction of peat from approximately 500 hectares. The burning of carbon based fuels (coal, oil, wood, peat – and natural gas) produces carbon dioxide and contributes to the global greenhouse effect. However, as demonstrated by the results of the Company’s work, the life cycle of peat fuel extraction and usage also includes reduction of methane emissions. The use of coal, oil and natural gas does not include this reduction benefit. Further detailed analysis of the methane monitoring data is being conducted as part of the overall project development plan by Peat Resources Limited. For more information contact: Peter Telford, President and CEO Telephone: (416) 862-7885 Fax: (416) 862-7889 e-mail: peatfuel@peatresources.com web site: www.peatresources.com The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. |