AGRIS Co-operative Ltd.

AGRIS Co-operative Ltd.
UPI Energy LP

UPI Energy LP

August 22, 2007 12:12 ET

AGRIS Co-operative and UPI Energy LP Announce Next Phase of Biofuels Study and Energy Merger

CHATHAM, ONTARIO--(Marketwire - Aug. 22, 2007) - AGRIS Co-operative and UPI Energy LP are announcing today that they have unanimously agreed to proceed to the next stage of developing a business and venture capital plan to build a facility focused on producing and marketing soy diesel in south-west Ontario. This decision was reached after receiving the positive results of the initial feasibility study on the financial viability of the soy project.

In January of 2007, AGRIS Co-operative and UPI Energy LP received $158,000 from Agriculture and Agri-Food Canada through the Agricultural Adaptation Council's Biofuels Opportunities for Producers Initiative (BOPI) to complete a feasibility study. BOPI funding assists Canada's new government to meet its biofuels commitment of five per cent average renewable fuel content in transport fuel by 2010. Announced last fall, BOPI is a national incentive program designed to encourage agricultural producers and rural communities to participate in increased biofuels production.

"Based on the results of the feasibility study, bio-diesel production has an opportunity to increase the demand for Ontario soy beans as well as provide attractive returns for farmers investing in a plant," says AGRIS Board President Richard Tanner.

Tennessee based FBA Consulting, LLC has been contracted to complete the Business Plan. FBA is a leading energy consulting firm with extensive experience in developing plans for bio diesel and ethanol plants. The Business Plan is expected to be ready for review by the AGRIS Board of Directors this September.

Energy Merger

AGRIS Co-operative in partnership with UPI Energy LP also announced today that they have formed a joint venture and will be merging its petroleum services into Kent, Lambton, Elgin and Middlesex counties, making AGRIS Co-operative the exclusive distributor of UPI soy based biodiesel farm fuels in south-western Ontario. AGRIS will be marketing environmentally friendlier renewable fuels, including high quality Diesel 3000™ in addition to ethanol-blended gasolines made from Ontario grown corn. AGRIS Co-operative currently offers petroleum delivery services in Essex and western portions of Kent County. The newly expanded territory covers the entire AGRIS trading area and will be serviced from energy depots located in Cottam and Thamesville.

AGRIS Co-operative Ltd. is a one-hundred-per-cent farmer-owned grain marketing and farm input supply company and serves more than 1,200 farmer members in 14 locations in Essex, Kent, Elgin, Middlesex and Lambton Counties. It is a leader in precision farming technology, seed, agronomy and petroleum services. The co-operative owns Wheatley Elevators specializing in Identity Preserved grain markets and is part owner of Great Lakes Grain Inc., a grain merchandising company. AGRIS Co-operative is a member-owner of GROWMARK, Inc. and markets products and services under the FS banner.

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