Exhibit
10.7


DEPARTMENT
OF NATURAL RESOURCES


ecoENERGY
FOR BIOFUELS


Existing
Renewable Alternatives to Diesel Production Facility Agreement


NON-REPAYABLE
CONTRIBUTION AGREEMENT


THIS
AGREEMENT is made in duplicate


	
  

 	
  

 	
  

 
	
 BETWEEN:

 	
  

 	
  

 
	
  

 	
 HER
 MAJESTY THE QUEEN IN RIGHT OF CANADA (“Canada”), represented by the Minister of Natural
 Resources,

 	
  

 
	
  

 	
  

 	
  

 
	
 AND:

 	
  

 	
  

 
	
  

 	
 METHES ENERGIES CANADA INC., a for-profit organization incorporated
 under the laws in force in the Province of
 Ontario (the “Proponent”).

 	
  

 


                         WHEREAS Canada wishes to encourage the
adoption of ecoENERGY for Biofuels (the
Program);


                         WHEREAS the Proponent has submitted to
Canada a Proposal which qualifies for support under the Program;


                         WHEREAS Canada and the Proponent agree that
the Incentive paid to the Proponent will be based on Eligible Production in
litres multiplied by the Incentive Rate in dollars;


                         WHEREAS the Project, Methes Energies
Mississauga, is owned in whole or in part by METHES
ENERGIES CANADA INC.;


                         AND WHEREAS Canada is willing to provide an
Incentive in the manner and upon the terms and conditions hereinafter set
forth;


                         NOW, THEREFORE, Canada and the Proponent agree
as follows:


	
  

 	
  

 
	
 1.

 	
 INTERPRETATION

 
	
  

 	
  

 
	
 1.1

 	
 In
 this Agreement:

 
	
  

 	
  

 
	
  

 	
  “Agreement” means this Agreement and the attached Schedules A, B, C, D and E. In
 the case of a conflict between the Agreement and the Schedules, the terms of
 the Agreement shall take precedence;

 
	
  

 	
  

 
	
  

 	
  “Biodiesel” means a fuel that is a Renewable Alternative to Diesel produced from
 Feedstock;

 
	
  

 	
  

 
	
  

 	
  “Eligible Production” means the portion of Total Production, in
 litres, that is produced in Canada and is accepted under the Program for an
 Incentive, as per maximum limits described in Schedule B of this Agreement,
 and sold by the Proponent during a quarter;

 
	
  

 	
  

 
	
  

 	
  “Fair Value” means the price that would be agreed upon in an arm’s length
 transaction between fully informed, knowledgeable, and willing parties;

 
	
  

 	
  

 
	
  

 	
  “Feedstock” means a renewable substance used as the primary input for the
 production of the Biodiesel;

 


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  “Fiscal Year” means the period beginning on April 1st of any year and
 ending on March 31st in the next year;

 
	
  

 	
  

 
	
  

 	
  “Incentive” means the amount paid to the Proponent by Canada and calculated
 pursuant to the terms and conditions of this Agreement as described in
 Schedule C;

 
	
  

 	
  

 
	
  

 	
  “Incentive Rate” means the difference between the Profitability Margin and the
 Industry Margin, per litre, as described in Schedule C of this Agreement;

 
	
  

 	
  

 
	
  

 	
  “Individual Facility Margin” means Revenues minus the Industry Margin
 Cost Elements multiplied by Eligible Production divided by Total Production
 in litres, as described in Schedule C of this Agreement;

 
	
  

 	
  

 
	
  

 	
  “Industry” means the sum of all Proponents producing Renewable Alternatives to
 Diesel under the Program;

 
	
  

 	
  

 
	
  

 	
  “Industry Margin” means weighted average of the Individual Facility Margins producing
 Renewable Alternatives to Diesel under the Program, divided by the sum of
 Eligible Production of all Proponents, as described in Schedule C of this
 Agreement;

 
	
  

 	
  

 
	
  

 	
  “Industry Margin Cost Elements” means costs of Feedstock and methanol used
 for Total Production during the quarter;

 
	
  

 	
  

 
	
  

 	
  “Intellectual Property” means any Intellectual Property right
 recognized by the law, including any intellectual property right protected
 through legislation (such as that governing patents, copyright, trade-marks,
 and industrial designs);

 
	
  

 	
  

 
	
  

 	
  “Minister” means the Minister of Natural Resources and includes any duly
 authorized officers or representatives;

 
	
  

 	
  

 
	
  

 	
  “Nameplate Capacity” means the number of litres per year of
 Biodiesel that the facility is capable of producing as certified by an
 engineer registered in Canada on behalf of the Proponent, technology or
 construction provider or a qualified subcontractor;

 
	
  

 	
  

 
	
  

 	
  “Profitability Margin” means the per litre margin for production
 of Renewable Alternatives to Diesel, as determined by Minister, and used by
 the Program in the calculation of the Incentive Rate, as described in
 Schedule C of this Agreement;

 
	
  

 	
  

 
	
  

 	
  “Project” means the description of the Proponent’s operation, as outlined in
 Schedule A;

 
	
  

 	
  

 
	
  

 	
  “Proposal” means a written ecoENERGY for Biofuels application form and all
 additional information received from the Proponent;

 
	
  

 	
  

 
	
  

 	
  “Renewable Alternatives to Diesel” means a fuel accepted under the Program,
 made from Feedstock;

 
	
  

 	
  

 
	
  

 	
  “Revenues” means all consideration received by the Proponent for Total Production
 including any amount that may be received from provincial, territorial or
 municipal governments;

 
	
  

 	
  

 
	
  

 	
  “Total Production” means the number of litres of fuel made from Feedstock that are sold
 by the Proponent during the quarter, produced by the facility in relation to
 the Project.

 
	
  

 	
  

 
	
 1.2

 	
 Grammatical
 variations of the above terms have similar meanings. Words importing the
 singular number only shall include the plural and vice versa.

 
	
  

 	
  

 
	
 2.

 	
 REPRESENTATIONS
 AND WARRANTIES

 
	
  

 	
  

 
	
 2.1

 	
 The
 Proponent represents and warrants that all factual matters contained in the
 Proposal and Project and all supporting material submitted are true and
 accurate, and that all estimates, forecasts and other related matters
 involving judgement were prepared in good faith and to the best of its
 ability, skill and judgement.

 
	
  

 	
  

 
	
 2.2

 	
 The
 Proponent represents and warrants that the Eligible Production is produced in
 Canada.

 
	
  

 	
  

 
	
 2.3

 	
 The
 Proponent represents and warrants that all information submitted to Canada as
 set out in Schedule D is true, accurate and was prepared in good faith and to
 the best of its ability, skill and judgement.

 


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 2.4

 	
 The
 Proponent undertakes to submit to Canada all information set out in Schedule
 D in strict compliance of the time set out in Schedule D.

 
	
  

 	
  

 
	
 3.

 	
 COMING
 INTO FORCE

 
	
  

 	
  

 
	
 3.1

 	
 This
 Agreement comes into force when signed by the parties.

 
	
  

 	
  

 
	
 4.

 	
 CONDUCT
 OF PROJECT

 
	
  

 	
  

 
	
 4.1

 	
 The
 Proponent shall carry out the Project promptly, diligently and in a
 professional manner and in accordance with the terms and conditions of this
 Agreement.

 
	
  

 	
  

 
	
 4.2

 	
 The
 Proponent shall comply with all applicable federal, provincial and municipal
 laws in relation to the Project.

 
	
  

 	
  

 
	
 5.

 	
 COMPLIANCE
 WITH ENVIRONMENTAL LEGISLATION

 
	
  

 	
  

 
	
 5.1

 	
 The
 Proponent shall comply with all applicable federal, provincial and municipal
 environmental legislation in relation to the Project. Canada may consider
 failure to comply with this obligation as a material breach.

 
	
  

 	
  

 
	
 5.2

 	
 The
 Proponent shall provide any information requested by Canada to satisfy its
 obligations under the Canadian
 Environmental Assessment Act as a result of the Project under this
 Agreement.

 
	
  

 	
  

 
	
 5.3

 	
 The
 Proponent shall comply with all conditions arising out of an environmental
 assessment conducted in accordance with the Canadian
 Environmental Assessment Act as a result of the Project under this
 Agreement, including the implementation of mitigation measures and any follow
 up program.

 
	
  

 	
  

 
	
 5.4

 	
 Notwithstanding
 any other provisions of this Agreement, it is a condition of this Agreement
 that, where an environmental assessment of a Project is required under the Canadian Environmental Assessment Act, Canada shall not make any payments to the Proponent
 unless and until:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 an
 environmental assessment has been carried out in accordance with the Canadian Environmental Assessment Act; and

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 the
 responsible authority(ies), pursuant to the Canadian
 Environmental Assessment Act, has(have) determined that taking
 into account the implementation of mitigation measures, the Project is not
 likely to cause significant adverse environmental effects.

 
	
  

 	
  

 
	
 5.5

 	
 Notwithstanding
 any other provision of this Agreement, if a change that would trigger a
 reassessment of the Project under the Canadian
 Environmental Assessment Act is proposed for, or made to the
 Project, the parties agree that Canada’s obligation under this Agreement will
 be suspended until an environmental assessment is completed and Canada
 determines that the Project as modified is unlikely to result in any significant
 adverse environmental effects.

 
	
  

 	
  

 
	
 5.6

 	
 The
 Proponent shall inform Canada of any circumstance where Project components or
 activities result in additional or unforeseen environmental effects during
 the time for which Canada is considered a responsible authority, pursuant to
 the Canadian Environmental Assessment Act.
 Furthermore, the Proponent shall review with Canada and other
 federal authorities, as appropriate, the potential significance of these
 environmental effects. The Proponent agrees to implement any measures that
 are considered to be technically and economically feasible to mitigate
 significant adverse environmental effects and, if necessary, to implement a
 follow-up program to ensure the effectiveness of the proposed mitigation
 measures.

 
	
  

 	
  

 
	
 6.

 	
 INCENTIVE

 
	
  

 	
  

 
	
 6.1

 	
 Notwithstanding
 any other provision of this Agreement, Canada’s liability under this
 Agreement shall not in any circumstances exceed FIVE MILLION AND THREE HUNDRED SIXTY THOUSAND DOLLARS ($5,360,000.00).

 
	
  

 	
  

 
	
 6.2

 	
 The
 Incentive will be calculated in accordance with Schedule C of this Agreement.

 


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 6.3

 	
 The
 Proponent shall be entitled to claim Incentive in a given Fiscal Year, up to
 the maximum set out in Schedule B.

 
	
  

 	
  

 
	
 6.4

 	
 The
 Proponent shall declare to Canada any amounts owing under any legislation or
 contribution agreements by the Proponent to Canada and Canada may set-off any
 such amounts owing to Canada.

 
	
  

 	
  

 
	
 7.

 	
 METHOD
 OF PAYMENT

 
	
  

 	
  

 
	
 7.1

 	
 Subject
 to the terms and conditions of this Agreement, following receipt of a claim
 for payment, acceptable to Canada, accompanied by copies of documents in
 accordance with Schedule D or as otherwise requested by the Minister, Canada
 shall pay an Incentive to the Proponent.

 
	
  

 	
  

 
	
 7.2

 	
 The
 Proponent shall claim the Incentive on a quarterly basis starting JULY 1, 2008 until JUNE 30, 2015.

 
	
  

 	
  

 
	
 7.3

 	
 In
 order to receive an Incentive, each claim for payment must be submitted by
 the Proponent to Canada within fifteen (15) business days after the end of a
 quarter. If the Proponent fails to submit its claim for payment within
 fifteen (15) business days after the end of a quarter, the Proponent shall
 not receive its Incentive for that quarter.

 
	
  

 	
  

 
	
 8.

 	
 ACCOUNTS
 AND AUDIT

 
	
  

 	
  

 
	
 8.1

 	
 For
 a period of ten (10) years from the signing of this Agreement, the Proponent
 shall:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 keep
 proper books, accounts, and records of the Eligible Production, including
 audit reports from an independent accredited auditor, Industry Margin Cost
 Elements and Revenues in connection with the Project and shall keep its
 invoices, receipts, and vouchers relating thereto;

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 keep
 proper and accurate records relating to the environmental impact (if any) of
 the Project;

 
	
  

 	
  

 	
  

 
	
  

 	
 c)

 	
 on
 demand, make available to Canada such books, accounts, records, invoices, receipts,
 and vouchers referred to above and permit Canada to examine and audit and
 take copies and extracts from such documents;

 
	
  

 	
  

 	
  

 
	
  

 	
 d)

 	
 allow
 Canada, at Canada’s discretion, to conduct audits to verify accuracy of
 reports submitted under Schedule D and E; and

 
	
  

 	
  

 	
  

 
	
  

 	
 e)

 	
 allow
 Canada, at Canada’s discretion, to conduct a technical audit to verify the
 Proposal and the Project.

 
	
  

 	
  

 	
  

 
	
 8.2

 	
 If,
 at any time, any discrepancy is identified between the amounts paid by Canada
 and the amounts actually payable under this Agreement, the appropriate
 adjustments shall be promptly made between the parties. If there has been an
 overpayment by Canada, the amount of the overpayment shall constitute a debt
 due to Canada and may be so recovered.

 
	
  

 	
  

 
	
 9.

 	
 INTELLECTUAL
 PROPERTY

 
	
  

 	
  

 
	
 9.1

 	
 All
 Intellectual Property that arises in the course of the Project shall vest in
 the Proponent.

 
	
  

 	
  

 
	
 9.2

 	
 The
 Proponent shall supply to Canada the reports and documents described in
 Schedule D or as otherwise required by Canada under Article 13 (Reports), and
 the Proponent hereby grants to Canada a non-exclusive, irrevocable,
 world-wide, free and royalty-free licence in perpetuity to use and modify
 such reports and documents for internal non-commercial governmental purposes.

 
	
  

 	
  

 
	
 10.

 	
 INDEMNITY

 
	
  

 	
  

 
	
 10.1

 	
 The
 Proponent shall indemnify and save harmless Canada and its ministers,
 employees and agents, from any and all claims, demands, losses, costs
 (including lawyers’ fees), damages, actions or proceedings resulting from or
 related to any wilful misconduct or negligent act or omission of the
 Proponent or its employees and agents in the performance of this Agreement,
 except to the extent caused by a breach of duty of Canada or its ministers,
 employees and agents.

 


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 10.2

 	
 The
 Proponent shall indemnify and save harmless Canada and its ministers,
 employees and agents, from any and all claims, demands, losses, costs
 (including lawyers’ fees), damages, actions or proceedings resulting from or
 related to any claim, demand or action made by a third party against them or
 any of them based upon Canada’s capacity as a provider of financial
 assistance under this Agreement, including, without limitation, any claim in
 respect of materials or services provided by a third party to the Proponent
 or to a subcontractor of the Proponent.

 
	
  

 	
  

 
	
 10.3

 	
 The
 Proponent shall indemnify and save harmless Canada and its ministers,
 employees and agents, from any and all claims, demands, losses, costs
 (including lawyers’ fees), damages, actions or proceedings resulting from or
 related to the Proponent or its employees and agents entering into a loan,
 capital lease or other long term obligation in relation to the Project.

 
	
  

 	
  

 
	
 11. 

 	
 DEFAULT

 
	
  

 	
  

 
	
 11.1

 	
 If,
 in the opinion of Canada, there has been a misrepresentation or a breach of
 warranty under Article 2 (Representations and Warranties), or a breach of
 condition under Article 5 (Compliance With Environmental Legislation), or the
 Proponent fails to proceed diligently with the Project, or is otherwise in
 default in carrying out any of the terms, conditions, covenants, or
 obligations of this Agreement, or if the Proponent becomes bankrupt or
 insolvent, or has a receiving order made against it (either under the Bankruptcy and Insolvency Act or
 otherwise), or a receiver is appointed, or the Proponent makes an assignment
 for the benefit of creditors, or if an order is made or a resolution passed
 for the winding up of the Proponent, or if the Proponent takes the benefit of
 any statute for the time being in force relating to bankrupt or insolvent
 debtors, Canada may, by giving notice in writing to the Proponent, exercise
 any or all of the following remedies:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 terminate
 the whole or any part of this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 terminate
 the obligation on the part of Canada to pay any monies in respect of the
 Project, including monies due or accruing due; and

 
	
  

 	
  

 	
  

 
	
  

 	
 c)

 	
 direct
 the Proponent to repay forthwith all or any part of monies paid by Canada
 pursuant to this Agreement and that amount is a debt due to Canada and may be
 so recovered.

 
	
  

 	
  

 
	
 11.2

 	
 In
 the event of the termination of this Agreement by Canada under Paragraph
 11.1, Canada may, in the discretion of Canada, pay to the Proponent Canada’s
 share of the Incentive for Eligible Production of the Project produced to the
 date of termination.

 
	
  

 	
  

 
	
 12.

 	
 ACCESS

 
	
  

 	
  

 
	
 12.1

 	
 The
 Proponent shall ensure that Canada has access during normal working hours to
 any premises or place where the Project is being carried out for the purposes
 of inspecting and assessing the progress of the Project and all matters
 pertaining thereto.

 
	
  

 	
  

 
	
 13.

 	
 REPORTS

 
	
  

 	
  

 
	
 13.1.

 	
 The
 Proponent shall submit Project reports satisfactory to the Minister in
 accordance with the provisions of Schedules D and E or as otherwise requested
 by the Minister

 
	
  

 	
  

 
	
 14.

 	
 LEGAL RELATIONSHIP

 
	
  

 	
  

 
	
 14.1

 	
 Nothing
 contained in this Agreement shall create the relationship of principal and
 agent, employer and employee, partnership or joint venture between the
 parties.

 
	
  

 	
  

 
	
 14.2

 	
 The
 Proponent shall not make any representation that:

 
	
  

 	
  

 	
  

 
	
  

 	
 a)

 	
 the
 Proponent is an agent of Canada; or

 
	
  

 	
  

 	
  

 
	
  

 	
 b)

 	
 could
 reasonably lead any member of the public to believe that the Proponent or its
 contractors are agents of Canada.

 


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 15.

 	
 ACKNOWLEDGEMENT

 
	
  

 	
  

 
	
 15.1

 	
 The
 Proponent will acknowledge the financial support of Canada in all public
 information produced as part of the Project.

 
	
  

 	
  

 
	
 15.2

 	
 The
 Proponent shall inform the Minister of all media announcements in relation to
 the Project.

 
	
  

 	
  

 
	
 16.

 	
 TIME
 OF ESSENCE

 
	
  

 	
  

 
	
 16.1

 	
 Time
 is of the essence with respect to all provisions of this Agreement that
 specify a time for performance.

 
	
  

 	
  

 
	
 17.

 	
 MEMBERS
 OF PARLIAMENT

 
	
  

 	
  

 
	
 17.1

 	
 No
 Member of the House of Commons or Senate shall be admitted to any share or
 part of this Agreement or to any benefit arising therefrom.

 
	
  

 	
  

 
	
 18.

 	
 CONFLICT
 OF INTEREST

 
	
  

 	
  

 
	
 18.1

 	
 It
 is a term of this Agreement that no individual, for whom the post-employment
 provisions of the Conflict of Interest and
 Post-Employment Code for Public Office Holders or the Values and Ethics Code for the Public Service apply,
 shall derive a direct benefit from this Agreement unless that individual is
 in compliance with the applicable post-employment provisions.

 
	
  

 	
  

 
	
 19.

 	
 FORCE
 MAJEURE

 
	
  

 	
  

 
	
 19.1

 	
 The
 parties shall not be in default or in breach of this Agreement due to any
 delay or failure to meet any of their obligations caused by or arising from
 any event beyond their reasonable control and without their fault or
 negligence, including any act of God or other cause which fully frustrates
 the performance of this Agreement or which fully discontinues operation of
 the Project (a “force majeure event”). In the event of a force majeure event
 which fully frustrates or discontinues the performance of this Agreement
 Canada will only be liable for its proportionate share of the Incentive up to
 the date of the occurrence of such event.

 
	
  

 	
  

 
	
 19.2

 	
 The
 performance of the obligation affected by a “force majeure event”, as set out
 in Paragraph 19.1, shall be delayed by the length of time over which the
 event lasted. However, should the interruption continue for more than one
 hundred and eighty (180) days, this Agreement may be terminated by Canada.

 
	
  

 	
  

 
	
 19.3

 	
 Should
 either party claim the existence of a “force majeure event” as set out in
 Paragraph 19.1, prompt notice thereof shall be given to the other party and
 the party claiming the existence of a “force majeure event” shall have the
 obligation to use its best efforts to mitigate any damages to the other party
 and to provide reasonably satisfactory evidence of the existence of such
 event to the other party.

 
	
  

 	
  

 
	
 20.

 	
 GOVERNING
 LAW

 
	
  

 	
  

 
	
 20.1

 	
 This
 Agreement shall be interpreted in accordance with the applicable federal laws
 and the laws in force in the Province of Ontario.

 
	
  

 	
  

 
	
 21.

 	
 PROJECT
 ASSIGNMENT AND TRANSFER OF RIGHTS

 
	
  

 	
  

 
	
 21.1

 	
 The
 Proponent shall not assign this Agreement without the prior written consent
 of Canada, which shall not be unreasonably withheld and any assignment made
 without that consent is void and of no effect.

 
	
  

 	
  

 
	
 22.

 	
 NOTICES

 
	
  

 	
  

 
	
 22.1

 	
 The
 claims for payment, requests, notices, and information referred to in this
 Agreement shall be sent in writing or by any method of telecommunication and,
 unless notice to the contrary is given, shall be addressed to the party
 concerned at the following address:

 


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 To Canada

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Isabelle Saint-Laurent 

 
	
  

 	
  

 	
 Senior Manager 

 
	
  

 	
  

 	
 ecoENERGY for Biofuels 

 
	
  

 	
  

 	
 Fuels Policy and Programs 

 
	
  

 	
  

 	
 Office of Energy
 Efficiency 

 
	
  

 	
  

 	
 Natural Resources Canada 

 
	
  

 	
  

 	
 580 Booth Street 

 
	
  

 	
  

 	
 Ottawa, Ontario 

 
	
  

 	
  

 	
 K1A 0E4

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telephone:   (613)
 947-7789

 
	
  

 	
  

 	
 Facsimile:    (613) 995-8961

 
	
  

 	
  

 	
 E-mail:         Isabelle.Saint-Laurent@NRCan-RNCan.gc.ca

 
	
  

 	
  

 	
  

 
	
  

 	
 To the
 Proponent:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Nicholas Ng

 
	
  

 	
  

 	
 Director of Business
 Development

 
	
  

 	
  

 	
 Methes Energies Canada
 Inc.

 
	
  

 	
  

 	
 5-4170 Sladeview Crescent

 
	
  

 	
  

 	
 Mississauga, Ontario

 
	
  

 	
  

 	
 L5L 0A1

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Telephone:  (905)
 828-2700 ext. 602

 
	
  

 	
  

 	
 Facsimile:    1-866-276-9589

 
	
  

 	
  

 	
 E-mail:        nng@methes.com

 






	
  

 	
  

 	
  

 
	
 22.2

 	
 Notices,
 requests and documents are deemed to have been received, if sent by
 registered mail, when the postal receipt is acknowledged by the other party;
 by facsimile or electronic mail, when transmitted and receipt is confirmed;
 and by messenger or specialized courier agency, when delivered.

 
	
  

 	
  

 
	
 23.

 	
 AMENDMENTS

 
	
  

 	
  

 
	
 23.1

 	
 No
 amendment of this Agreement or waiver of any of its terms and conditions
 shall be deemed valid unless effected by a written amendment signed by the
 parties.

 
	
  

 	
  

 
	
 24.

 	
 DISPUTE RESOLUTION

 
	
  

 	
  

 
	
 24.1

 	
 The
 parties may attempt to resolve any dispute arising out of or pursuant to this
 Agreement by recourse to the dispute resolution methods identified in the
 following sequence, although steps may be by-passed by mutual consent.

 
	
  

 	
  

 	
  

 
	
  

 	
 1)

 	
 negotiations;

 
	
  

 	
 2)

 	
 non-binding
 mediation or conciliation; or

 
	
  

 	
 3)

 	
 binding
 arbitration.

 
	
  

 	
  

 
	
 24.2

 	
 If
 the parties cannot agree on any of the foregoing dispute resolution
 mechanisms, either party may, at any time, elect to have such dispute
 resolved by litigation in the proper judicial forum in Canada.

 
	
  

 	
  

 
	
 24.3

 	
 Any
 party may within fifteen (15) days take the dispute to the next step if the
 parties fail to agree on the appointment or procedure referred to in this
 Article.

 
	
  

 	
  

 
	
 24.4

 	
 When
 mediation or conciliation is selected by the parties, they shall jointly
 appoint one impartial expert mediator or conciliator to undertake the process
 according to mutually agreed upon procedures.

 


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 24.5

 	
 If
 the parties decide to submit a dispute to arbitration, it shall be carried
 out pursuant to the Commercial Arbitration
 Act of Canada. The arbitral award shall be in terms of money only,
 and shall not include punitive damages, costs or interim measures. The
 parties shall attempt to appoint jointly one impartial expert arbitrator. If
 the parties cannot agree within thirty (30) days on the choice of an
 arbitrator, each party shall appoint, at its own cost, one impartial expert
 arbitrator and those two arbitrators shall appoint an expert third arbitrator
 as chairperson of an arbitral tribunal.

 
	
  

 	
  

 
	
 24.6

 	
 When
 one of the above steps 24.1(2) or (3) is selected to resolve a dispute, the
 parties shall jointly enter into a contract with the required mediator or
 conciliator, third party, arbitrator or arbitrators, as the case may be, to
 pay the costs for the desired services and to bear their own costs of
 participating in the process involved. The contracts referred to and
 contemplated by this Article shall be in the form and content as proposed by
 Canada.

 
	
  

 	
  

 
	
 25.

 	
 APPROPRIATION

 
	
  

 	
  

 
	
 25.1

 	
 The
 payment of monies by Canada under this Agreement is subject to there being an
 appropriation by Parliament for the Fiscal Year in which the payment of
 monies is to be made.

 
	
  

 	
  

 
	
 25.2

 	
 Notwithstanding
 any other provision of this Agreement, Canada may reduce or cancel its
 financial contribution to the Project upon written notice to the Proponent in
 the event that the funding levels for the Department of Natural Resources are
 changed by Parliament during the term of this Agreement. In the event that
 Canada reduces or cancels its financial contribution, the parties agree to
 amend the Project and the Incentives for Eligible Production of the Project,
 namely this Agreement, to take into account the reduction or cancellation of
 Canada’s financial contribution.

 
	
  

 	
  

 
	
 26.

 	
 LOBBYING ACT

 
	
  

 	
  

 
	
 26.1

 	
 The
 Proponent shall ensure that any person lobbying on behalf of the Proponent is
 registered pursuant to the Lobbying Act and
 that the fees paid to the lobbyist are not to be related to the value of the
 financial contribution pursuant to the terms of this Agreement.

 
	
  

 	
  

 
	
 27.

 	
 SUCCESSORS
 AND ASSIGNS

 
	
  

 	
  

 
	
 27.1

 	
 This
 Agreement shall inure to the benefit of and be binding on the parties and
 their respective representatives, successors and assigns.

 
	
  

 	
  

 
	
 28.

 	
 OFFICIAL
 LANGUAGES/LANGUES OFFICIELLES

 
	
  

 	
  

 
	
 28.1

 	
 This
 Agreement is drawn in English at the request of the parties. Les parties ont
 convenu que le présent Accord soit rédigé en anglais.

 
	
  

 	
  

 
	
 28.2

 	
 All
 public information documents related to the Project prepared or paid in whole
 or in part by Canada must be made available in both official languages, when
 the Department of Natural Resources judges that this is required under the Official Languages Act. Tout document
 d’information publique préparé ou payé en tout ou en partie par le Canada
 ayant trait au Projet doit être offert dans les deux langues officielles,
 lorsque le Ministère des Ressources naturelles le juge pertinent,
 conformément à la Loi sur les langues
 officielles.

 
	
  

 	
  

 
	
 29.

 	
 SEVERABILITY

 
	
  

 	
  

 
	
 29.1

 	
 Invalidity
 or unenforceability of one or more provisions of this Agreement shall not
 affect any other provision of this Agreement.

 
	
  

 	
  

 
	
 30.

 	
 ENTIRE
 AGREEMENT

 
	
  

 	
  

 
	
 30.1

 	
 This
 Agreement constitutes the entire Agreement between the parties with respect
 to the subject matter of this Agreement and supersedes all previous
 negotiations, communications, and other agreements, whether written or verbal
 between the parties.

 


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 IN WITNESS WHEREOF this Agreement has been executed on behalf of Her Majesty the Queen in right of Canada by an officer
 duly authorized by the Minister of Natural Resources and on behalf of the Proponent, by an officer duly authorized
 on its behalf.

 






	
  

 	
  

 	
  

 
	
  

 	
  

 	
 HER
 MAJESTY THE QUEEN IN RIGHT OF CANADA

 
	
  

 	
  

 	
  

 
	
 February 10, 2009

 	
  

 	
 

 
	

 


 	
  

 	

 


 
	
 Date

 	
  

 	
 Margaret McCuaig Johnston

 
	
  

 	
  

 	
 Assistant Deputy Minister

 
	
  

 	
  

 	
 Energy Technology and
 Programs Sector

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 METHES
 ENERGIES CANADA INC.

 
	
  

 	
  

 	
  

 
	
 FEB 09, 2009

 	
  

 	
 

 
	

 


 	
  

 	

 


 
	
 Date

 	
  

 	
 John Loewen
President




-9-






SCHEDULE
A


To the Agreement between


HER
MAJESTY THE QUEEN IN RIGHT OF CANADA


And


METHES ENERGIES CANADA INC. 


DESCRIPTION
OF OPERATION


	
  

 	
  

 	
  

 
	
 1.

 	
 DESCRIPTION/SCOPE:

 
	
  

 	
  

 
	
  

 	
 a) Owners

 
	
  

 	
  

 
	
  

 	
 The facility, Methes Energies Mississauga, is owned by
 Methes Energies Canada Inc. Methes Energies Canada Inc. is 100% owned by Methes
 Energies International Ltd.

 
	
  

 	
  

 
	
  

 	
 The total Nameplate Capacity of all facilities that
 Methes Energies International Ltd. owns is 30 million litres of Biodiesel.

 
	
  

 	
  

 
	
  

 	
 b) Location

 
	
  

 	
  

 
	
  

 	
 The facility is located in Mississauga, Ontario,
 globally positioned approximately at 43o31’52” North and 79o43’10” West. The address
 of the facility is

 
	
  

 	
  

 
	
  

 	
  

 	
 5-4170
 Sladeview Crescent 

 
	
  

 	
  

 	
 Mississauga,
 Ontario 

 
	
  

 	
  

 	
 L5L OA1

 
	
  

 	
  

 
	
  

 	
 c) Nameplate Capacity

 
	
  

 	
  

 
	
  

 	
 The Mississauga facility’s Nameplate Capacity is 5
 million litres of Biodiesel.

 
	
  

 	
  

 
	
  

 	
 d) Technology

 
	
  

 	
  

 
	
  

 	
 The Project uses the Methes Energies Canada Inc. Denami
 600 Biodiesel Processor. The conversion process uses the base-catalyzed trans-esterification of oil
 with methanol.

 
	
  

 	
  

 
	
  

 	
 e) Operation

 
	
  

 	
  

 
	
  

 	
 The Project will require approximately 5000 tonnes of
 Feedstock per year, composed of 2500 tonnes of beef tallow and 2500 tonnes of
 choice white grease. It is expected that this Feedstock will be sourced from
 Canada and the United States.

 
	
  

 	
  

 
	
  

 	
 Energy inputs are electricity and natural gas.
 Electricity is used for Power pumps and controls; annual requirements are estimated at 161,280
 kWh. The quantity used per litre of fuel is 0.032256 kWh with a Megajoule equivalent of 0.1161216. Natural gas is used to
 heat products during reaction; annual requirements are estimated at
 79,800 m3. The quantity used per litre of fuel is 0.604086 m3 with a Megajoule equivalent of 30.2043.

 
	
  

 	
  

 
	
  

 	
 Water is sourced from the City of Mississauga. It is
 estimated that the Project will use 3 million litres of non-contact
 cooling water annually, or 0.6 litres of water per litre of renewable fuel produced, to condense
 the methanol in the flash evaporators.

 
	
  

 	
  

 
	
  

 	
 Glycerine is produced as a co-product, at an expected
 annual production volume of 937 tonnes.

 
	
  

 	
  

 
	
  

 	
 Based on information related to energy type and
 quantity submitted by the Proponent in their application, as well as
 emissions factors supplied by the Program, the Project’s estimated annual direct energy-related
 GHG emissions, at nameplate capacity, are expected to be approximately 0.15 kilotonnes of CO2
 equivalent per year.

 


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 f) Fuel
 Quality

 
	
  

 	
  

 
	
  

 	
 In its
 application to the Program, the Proponent has indicated that Biodiesel will
 not be sold until it has passed the ASTM D6751 or EN 14214 analysis.

 
	
  

 	
  

 
	
 2.

 	
 BENEFITS:

 
	
  

 	
  

 
	
  

 	
 Benefits to
 Stakeholders

 
	
  

 	
  

 
	
  

 	
 The
 Program’s operating incentives, which vary according to market conditions and
 average industry
 profitability, will partially offset the risk associated with fluctuating
 feedstock and fuel prices.

 
	
  

 	
  

 
	
  

 	
 Benefits to Canada

 
	
  

 	
  

 
	
  

 	
 The Government of Canada is
 committed to expanding the production and use of cleaner, renewable biofuels such as ethanol and
 biodiesel.

 
	
  

 	
  

 
	
  

 	
 The
 Project will produce Renewable Alternatives to Diesel in Canada, contributing
 to the development of a competitive domestic industry for renewable fuels.
 The Project will contribute to achieving the goals of the Government’s
 four-pronged strategy. The strategy aims to reduce greenhouse gas (GHG)
 emissions resulting from fuel use, encourage greater production of biofuels, accelerate the commercialization
 of new biofuel technologies, and provide new market opportunities for agricultural producers and rural communities.

 



-11-





SCHEDULE B


To the Agreement between


HER MAJESTY THE QUEEN IN RIGHT OF
CANADA


And 


METHES ENERGIES CANADA INC.


MAXIMUM ANNUAL ELIGIBLE PRODUCTION
AND INCENTIVE AMOUNTS


	
  

 	
  

 
	
 1.

 	
 CANADA’S MAXIMUM CONTRIBUTION SHALL
 NOT EXCEED FIVE MILLION THREE HUNDRED AND SIXTY THOUSAND
 ($5,360,000) AS DETERMINED IN SECTION 2 BELOW.

 
	
  

 	
  

 
	
 2.

 	
 MAXIMUM ANNUAL ELIGIBLE PRODUCTION:

 






	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fiscal Year

 	
  

 	
 Eligible Production

 (millions of litres)

 	
  

 	
 Maximum Incentive

 Rate Payable ($ per L)

 	
  

 	
 Maximum
 Incentive

 	
  

 
	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 
	
 2008-2009

 	
  

 	
 3

 	
  

 	
 0.20 

 	
  

 	
 $

 	
 600,000

 	
  

 
	
 2009-2010

 	
  

 	
 5

 	
  

 	
 0.20 

 	
  

 	
 $

 	
 1,000,000

 	
  

 
	
 2010-2011

 	
  

 	
 5

 	
  

 	
 0.20 

 	
  

 	
 $

 	
 l,000,000

 	
  

 
	
 2011-2012

 	
  

 	
 5

 	
  

 	
 0.16 

 	
  

 	
 $

 	
 800,000

 	
  

 
	
 2012-2013

 	
  

 	
 5

 	
  

 	
 0.14 

 	
  

 	
 $

 	
 700,000

 	
  

 
	
 2013-2014

 	
  

 	
 5

 	
  

 	
 0.12 

 	
  

 	
 $

 	
 600,000

 	
  

 
	
 2014-2015

 	
  

 	
 5

 	
  

 	
 0.10 

 	
  

 	
 $

 	
 500,000

 	
  

 
	
 2015-2016

 	
  

 	
 2

 	
  

 	
 0.08 

 	
  

 	
 $

 	
 160,000

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 


 	

 


 	
  

 
	
 Total

 	
  

 	
 $

 	
 5,360,000

 	
  

 
	
  

 	
  

 	

 


 	

 


 	
  

 






	
  

 	
  

 
	
 3.

 	
 The Incentive will be
 calculated in accordance with Schedule C of this Agreement.

 


-12-





SCHEDULE C


To the Agreement between


HER
MAJESTY THE QUEEN IN RIGHT OF CANADA


And


METHES ENERGIES CANADA INC.


CALCULATION
OF THE INCENTIVE


On a
quarterly basis, and for Proponents who have submitted their claim for payment
within fifteen (I5) business days after the
end of a quarter, the Incentive paid by Canada shall be calculated in the following manner.


	
  

 	
  

 
	
 1.

 	
 The
 Incentive will be determined in accordance with the following formula:

 
	
  

 	
  

 
	
 Incentive = Eligible Production x Incentive Rate

 
	
  

 	
  

 
	
 2.

 	
 The Incentive Rate (IR) will represent the difference
 between the Profitability Margin (PM) and the Industry Margin (IM), as follows:

 
	
  

 	
  

 
	
  

 	
 IR = PM - IM

 
	
  

 	
  

 
	
  

 	
 If
 the IR is equal to or less than zero, no payment will be made.

 
	
  

 	
  

 
	
 3.

 	
 The PM has been determined by Canada and is set at $0.32
 per litre for the 2008-2009 Fiscal Year for the production of Renewable
 Alternative to Diesel under the Program. This value for the first Fiscal Year
 has been set based on the industry’s indication of a lack of access to debt
 financing. The Profitability Margin may be adjusted by the Minister, at the
 Minister’s discretion for any future Fiscal Year should the Canadian biodiesel industry’s
 access to debt financing improve. The PM will not be lower than $0.25 per litre for
 any Fiscal Year.

 
	
  

 	
  

 
	
 4.

 	
 The IM will be determined by Canada by taking into
 account the sum of Individual Facility Margins (IFM) and the sum of Eligible
 Production of all Proponents producing Renewable Alternatives to Diesel under the
 Program, as follows:

 
	
  

 	
  

 
	
 IM = sum of IFM ÷ sum of Eligible Production
 of all Proponents

 
	
  

 	
  

 
	
 5.

 	
 The IFM will be determined by Canada by taking into
 consideration Revenue, Individual Margin Cost Elements, Eligible Production
 and Total Production, as follows:

 
	
  

 	
  

 
	
  

 	
 IFM =

 
	
  

 	
 (Revenue - Individual Margin Cost Elements) x
 (Eligible Production ÷ Total Production)

 
	
  

 	
  

 
	
 6.

 	
 The
 Incentive Rate will not exceed the maximum limit described in the following
 table:

 






	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Maximum Incentive Rate Payable ($ per
 L)

 	
  

 
	
  

 	
  

 	

 


 	
  

 
	
 Fiscal Year

 	
  

 	
 2008-

 2009

 	
  

 	
 2009-

 2010

 	
  

 	
 2010-

 2011

 	
  

 	
 2011-

 2012

 	
  

 	
 2012-

 2013

 	
  

 	
 2013-

 2014

 	
  

 	
 2014-

 2015

 	
  

 	
 2015-

 2016

 	
  

 
	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 	

 


 	
  

 
	
 Renewable
 Alternatives to Diesel

 	
  

 	
 0.20

 	
  

 	
 0.20

 	
  

 	
 0.20

 	
  

 	
 0.16

 	
  

 	
 0.14

 	
  

 	
 0.12

 	
  

 	
 0.10

 	
  

 	
 0.08

 	
  

 


-13-





SCHEDULE D


To the Agreement between


HER MAJESTY THE QUEEN IN RIGHT OF
CANADA


And 


METHES ENERGIES CANADA INC.


REPORTS


	
  

 	
  

 	
  

 
	
 A.

 	
 CLAIMS FOR PAYMENT:

 
	
  

 	
  

 	
  

 
	
 i)

 	
 When submitting each claim for payment and within fifteen (15) business days after the end of a quarter, the Proponent shall complete and submit
 the following claim for payment template.

 
	
  

 	
  

 	
  

 
	
 ii)

 	
 The
 claim for payment must be prepared in accordance with accounting principles
 in force in Canada and signed by the Chief
 Financial Officer or Duly Authorized Officer of the Proponent.

 






	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 Claim for Payment

 Information
 Requirement 

 For the
 period ending on (*Insert the last day of the quarter)

 
	
  

 
	
 Revenues

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fuel
 Sales

 	
  

 	
 $

 	
  

 
	
  

 	
  

 	
 Incentives
 from other level of government

 	
  

 	
$

 	
   

 
	
 Individual Margin Cost Elements

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Feedstock

 	
  

 	
 $

 	
  

 
	
  

 	
  

 	
 Methanol

 	
  

 	
 $

 	
  

 
	
 Eligible Production

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Number
 of Litres Sold

 	
  

 	
  

 	
  

 
	
 Total Production

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Number
 of Litres Sold

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 “I______________an officer, of____________( organization’s legal
name as stated in the Contribution Agreement), duly authorized hereby represent
and warrant that the above noted information is true and accurate and has been prepared in
accordance with accounting principles in
force in Canada and I also hereby represent and warrant that transactions
with related parties, if applicable, are reported at Fair
Value.” 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Date

 	
  

 	
  

 	
  

 	
 Name of Signing Authority 

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Title

 	
  

 	
  

 	
  

 
	
  

 






	
  

 	
  

 	
  

 
	
 B.

 	
 ANNUAL REPORT:

 
	
  

 	
  

 	
  

 
	
 i)

 	
 On an annual basis and no later than
 March 15th, the Proponent shall provide the anticipated Eligible Production for the last
 quarter of the Fiscal Year, to allow Canada to establish a payable at year-end.

 


-14-









	
  

 	
  

 	
  

 
	
 C.

 	
 AUDITED FINANCIAL STATEMENTS:

 
	
  

 	
  

 	
  

 
	
 i)

 	
 On an annual basis and within thirty (30) calendar days from the approval of the statements, the Proponent shall provide its
 audited financial statements and a note signed by its auditor(s) providing assurance that the
 elements in the claims for payment (Part A) portion of this Schedule were
 assessed during the audit with respect to accuracy, compliance with
 accounting principles in force in Canada and that transactions with related
 parties have been reported at Fair
 Value.

 
	
  

 	
  

 	
  

 
	
 D.

 	
 SPECIAL PURPOSES REPORT:

 
	
  

 	
  

 	
  

 
	
  

 	
 In order to allow Canada to review the Profitability
 Margin, on an annual basis and within thirty
 (30) calendar days from the approval of its audited financial statements, the Proponent shall provide a special purposes
 report for the Project. This report should be based on the same fiscal period as reported in the audited
 financial statements, be signed by the Chief Financial Officer or Duly Authorized Officer of the Proponent
 and include the following
 information:

 






	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 i)

 	
 Details
 of the individual components of Revenues by total dollar value and the volumes of each component of Revenues sold,
 produced and inventoried to include
 Eligible Production and Total Project Production;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ii)

 	
 Details
 of the individual components of Industry Margin Cost Elements by total dollar
 value and the volumes of each component of Industry Margin Cost Elements purchased and used in the production
 process;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 iii)

 	
 A
 detailed summary of all revenue and expense items, excluding items in i) and ii) above, that were used in the determination
 of net income as disclosed in the Audited
 Financial Statements;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 iv)

 	
 Details
 of Project capital costs balances and expenditures occurring during the year to include plant construction costs,
 pre-opening costs, capitalized start-up costs, financing costs and any
 reductions to capital costs from government assistance
 and sales revenue;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 v)

 	
 Details of
 shareholders’ equity balances and changes occurring during the year to include classes of shares, shares issued,
 consideration received, dividends paid, and voting and other rights;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 vi)

 	
 Details
 of debt and government assistance payable balances and transactions occurring during the year to include principal
 outstanding, terms and conditions, principal advances and repayments, future
 payment requirements, and interest expenses;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 vii)

 	
 A
 summary of all related party transactions that relate to items i), ii), iii),
 iv), v) and vi) above and
 disclosure of transaction details for any of the related party transactions
 that were not completed on terms and conditions that are similar to those
 of transactions with unrelated parties to include the measurement basis used, quantities exchanged and the monetary
 difference between the exchange amount
 and Fair Value;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 viii)

 	
 A
 summary of gains and losses from hedging activities relating to i) and ii)
 above and disclosure of any
 speculative hedging gains or losses included in i) and ii) above; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ix)

 	
 Disclosure
 of any related parties that have entered into an Agreement for the Program and a description of the relationship.

 
	
  

 	
  

 	
  

 	
  

 
	
 E.

 	
 COMPLIMENTARY INFORMATION SPREADSHEET:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 On quarterly basis and within fifteen
 (15) business days after the end of a quarter, the Proponent shall provide the complimentary
 information spreadsheet that will include information on production, Revenue, Industry Margin Cost Elements,
 Ethanol inventory, Intercompany transactions, and current market prices.

 


-15-





SCHEDULE E


To the Agreement between


HER
MAJESTY THE QUEEN IN RIGHT OF CANADA


And 


METHES ENERGIES CANADA INC.


COMPLEMENTARY
REPORTS


	
  

 	
  

 
	
 A.

 	
 Complementary
 Environmental Performance Report:

 
	
  

 
	
 In
 order to assess the environmental performance of the Project, on an annual basis and no later than June 1st, the Proponent shall provide reports on the
 environmental performance of the facility that will include information on:

 
	
  

 	
  

 
	
 i)

 	
 Energy Use

 
	
  

 	
  

 
	
  

 	
 Description
 of type and quantity of all energy inputs (e.g. natural gas, electricity,
 biomass, combined heat and power)
 used for overall plant operations and description of type and quantity of
 energy inputs used specifically for Renewable Alternative to Diesel and co-product production, if such values are
 different than that of the overall plant operations.

 
	
  

 	
  

 
	
 ii)
 

 	
 Water
 Use

 
	
  

 	
  

 
	
  

 	
 Description
 of the process, source and quantity of water used, and if available, such information for each stage of plant operations.

 
	
  

 	
  

 
	
 iii)
 

 	
 Feedstock
 Source(s) and Operation

 
	
  

 	
  

 
	
  

 	
 The
 type and geographical source of feedstock supply: report distance and mode of
 transport from feedstock source
 (including original source, intermediary processing/storage facilities) to
 fuel production facility; and

 
	
  

 	
  

 
	
  

 	
 Quantity
 of feedstock required per litre of renewable fuel produced.

 
	
  

 	
  

 
	
 iv)

 	
 Sale
 and Distribution

 
	
  

 	
  

 
	
  

 	
 The
 distribution pathway(s) for saleable products from the facility to buyer(s) -
 including renewable fuel and co-products. Report the distance and mode of
 transport required for delivering
 outputs.

 
	
  

 	
  

 
	
 v)
 

 	
 Waste
 Water

 
	
  

 	
  

 
	
  

 	
 Description
 of where and the volume of water discharged. In addition, the Proponent may also provide, if available, the quality of
 water discharged from the Project, such as any changes in temperature, pH,
 biological/chemical oxygen demand (BOD/COD), and contaminants of waste water discharged.

 
	
  

 	
  

 
	
 vi)

 	
 Waste
 and Waste Management

 
	
  

 	
  

 
	
  

 	
 The distribution or
 disposal of waste resulting from Renewable Alternative to Diesel and co-product production – report type, amount (by
 volume or mass) and proportion of all waste products and whether they
 are sold, distributed, or disposed of, where and how.

 


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