EXPANDER ENERGY AND IMG INDUSTRIES FORM PARTNERSHIP TO CREATE EXPANDER TECHNOLOGIES INC. TO MANUFACTURE EXPANDER'S PATENTED BIO

CALGARY, AB, May 23, 2023 /CNW/ - Expander Energy Inc. and IMG Industries have formed a partnership to establish Expander Technologies Inc., a clean technology company based in Penticton, B.C.

Expander Technologies Inc. (ETI) will manufacture Expander Energy's biomass gasifiers under license. These gasifiers have an innovative patented design that produces clean, tar-free synthesis gas ("syn-gas") from various cellulosic feedstocks such as forestry waste, agricultural waste, urban wood-waste, and municipal solid waste. When combined with Expander's Enhanced Biomass to Liquids ("EBTL™") process, the high-quality syn-gas will be used to produce low carbon intensity renewable fuel. The gasifier technology has a proven track record in Europe for producing green power from woody biomass feedstock, demonstrating exceptional operating efficiencies.

The initial project for Expander Technologies will involve constructing a gasifier for Expander Energy's recently announced Expander Bio-SynDiesel® Project in Carseland, Alberta. This project will produce 8 million liters/year of renewable Bio-Synthetic Diesel fuel, with an estimated Carbon Intensity (CI) of 32.5 gCO2e/MJ. This significantly exceeds Canada's Clean Fuel Standard requirement for diesel fuel of 79.0 gCO2e/MJ by 2030. Production is expected to begin in mid-2025.

Expander Energy Inc. has enlisted Expander Technologies Inc. to manufacture the gasifier for the Carseland project. Expander Technologies Inc. is an 'Eligible Corporation' under the British Columbia Venture Capital Tax Credit Program allowing qualified individuals and corporations in British Columbia to benefit from a 30% provincial tax credit.

Additionally, Expander Technologies has entered into a share sale agreement with ABCT Pacific, a provincially certified Venture Capital Corporation in British Columbia. This share investment will also qualify for a 30% British Columbia tax credit for qualified individuals and corporations residing in the province.

"The establishment of Expander Technologies Inc. marks a significant milestone in Expander Energy's commercialization process. By partnering with IMG Industries and manufacturing our patented gasifier design in British Columbia, we are well-positioned to meet the market demand for low carbon intensity and renewable fuels," said James Ross, Expander Executive Chairman and CFO.

About Expander Energy

Expander Energy Inc. is a Calgary, Alberta based energy technology company that has developed a patented suite of transportation fuel production technologies to convert biomass and low Carbon Intensity electricity into "Fossil Free" Net-Zero Life Cycle Carbon Intensity synthetic diesel fuel (Bio-SynDiesel®) and synthetic kerosene jet fuel (Bio-SynJet®). Expander's Bio-Energy Carbon Capture and Sequestration (BECCS) solution utilizes cellulosic biomass to produce next generation low CI synthetic fuels while efficiently capturing bio-carbon for geologic sequestration. Bio-SynDiesel®, Bio-SynJet®, BGTL™, EBTL™, BETL™, and CETL™ are trademarks of Expander Energy Inc.

www.expanderenergy.com

About IMG Industries

IMG Industries Inc. is owned and operated by a collaboration of business partners who's many working years in industrial operations and manufacturing facilities brings extensive experience and sough-after knowledge to design and manufacture products to the highest quality. IMG operates out of a large industrial facility located in the heart of Okanagan Valley, British Columbia.

SOURCE Expander Energy Inc.

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