Maxim Power Corp. provided project update on M2 CCGT expansion. As previously reported, start up of the CCGT expansion project will be delayed due to the Incident.

Construction of the CCGT expansion project is currently greater than 99% complete, however, hot-commissioning activities cannot occur until M2 is returned to service. The estimated project cost, excluding borrowing costs and the net effect of $20 million of grant proceeds, is currently $162 million. The estimated project costs increased from $155 million due to incremental costs anticipated to be incurred as a result of the delay in commissioning and exclude the costs related to procuring the new air inlet filter house, which are expected to be recovered from insurance coverage.

Completion of the CCGT expansion of M2 will allow for the capture of waste heat that would otherwise exhaust into the atmosphere and turn it into useful low carbon electricity for the Alberta power grid. The CCGT expansion of M2 will reduce the intensity of carbon emissions by more than 60% compared to the legacy coal-fired H.R. Milner facility. At this time, MAXIM forecasts it has sufficient liquidity to complete both the CCGT expansion of M2 and the replacement of the air inlet filter house and will fund these costs using cash on hand, available funds through the existing senior and subordinated credit facilities, and anticipated insurance proceeds, as required.