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Production Tax Credit Extended

Biomass Project’s eligibility for the credit remains intact. This could provide a very significant incentive (roughly $25.7 per ton of switchgrass on a before-tax basis, or about $39.60 per ton of switchgrass on an after-tax basis) for the project when it enters its commercial operation phase. At the present targeted commercial design and operation rate of 100,000 tons per year, the PTC will be worth the equivalent of a revenue stream of nearly $4 million per year. With its operation for the Long Term Test Burn which is planned to occur in the Winter/Spring of 2006 (with production facility commissioning tests occurring in the Fall/Winter of 2005), the project will meet the placed-in-service date of the new Section 45 Production Tax Credit and could potentially claim the tax credit thereafter.