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Friday, November 10, 2006

U.S. Pipe Plants In Ala. to Use Renewable Energy for Industrial Processes

Intrinergy, a provider of alternative fuels to industrial customers, and U.S. Pipe and Foundry Co., of Birmingham, Ala., announced that Intrinergy will provide clean, renewable synthesis gas to U.S. Pipe for use at its Bessemer and North Birmingham plants.

Under a long-term energy supply agreement, Intrinergy will build, ownand operate a state-of-the-art gasification unit at each of the two U.S. Pipe sites to convert into a gas such products as wood waste and shreddedplastic automotive parts that would otherwise be buried in landfills.

Tosupply the feedstock, Intrinergy will build, own and operate a materials processing facility at a separate location. The Intrinergy facilities in Bessemer and North Birmingham are expected to reduce U.S. Pipe's use of fossil fuels and the company's exposure tovolatile natural gas prices and supplies.

The Jefferson County Economic and Industrial Development Authority has unanimously authorized an agreement with Intrinergy for the issuance andsale of $25 million to $35 million in limited obligation bonds within the next year.

John Keppler, chief executive officer of Intrinergy, says, "This project will bring substantial benefits to U.S. Pipe. In addition, this project springboards Alabama to the fore in using proven technology to helpreduce the environmental problems associated with burying waste inlandfills. U.S. Pipe is a regional leader and a national model in thisregard."

Keppler says that depending on permitting, Intrinergy expects to break ground in the second quarter of 2007 and to begin commercial operations inthe fourth quarter of 2007. He adds the project will create approximately15 jobs at the gasification units and approximately 15 jobs at thematerials processing site.

"U.S. Pipe is proud to support innovative technology with equipmentthat is made in America," says Ray Torok, president of U.S. Pipe.


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