General Information and Request

Indeck Ladysmith, LLC (Seller), a subsidiary of Indeck Energy Services, Inc. and Midwest Forest Products Company, is requesting proposals from parties interested in the purchase of wood pellets from the Indeck Ladysmith BioFuel Center (Facility).  It is the intent of this solicitation that the Seller enters into short, medium, and long term sales agreement(s).

The Facility is located in Rusk County within the City of Ladysmith, Wisconsin at the Forest Products Industrial Park and has a production design capacity of 70,000 tons per year (TPY) with capability of upwards of 90,000 TPY.  The Facility is capable of receiving feedstock in the form of sawdust through whole tree logs (with and without bark).  Pellets produced at the Facility can be purchased in bulk or packaged in super sacks, totes, 40 lb bags to 15 kg bags for rail car or truck transport.  The location of the Facility is within one (1) mile of major truck routes and the intersection of State Highways 8 and 27 and is served by the Canadian National Railroad with a rail spur on site.  Seller has commenced construction.

Pellet production at the Facility is flexible in that pellets produced may or may not include bark, per customer specification.  Sellers anticipated specifications are as follows:

PARAMETER                                                    WITH BARK                   WITHOUT BARK

WOOD SPECIES                                                100% Hardwood w/ up to 50% softwood

BTU/LB                                                                                8,000 (ave)          

ASH CONTENT                                                              < 3%                       < 1%

MOISTURE CONTENT                                                     8%                            8%

DIAMETER                                                          1/4 to 3/8                              1/4 to 3/8

Note:  Bark is assumed at 15% of the feedstock in the with bark values above.

Seller requests that bidders submit proposals via email, facsimile, or mail.  Proposals sent via email or facsimile shall be followed up with U.S. Mail or overnight mail delivery within 48 hours of the proposal due date listed within the schedule below.  Please include the following with your proposals:

• Pricing (USD) per US short ton or metric ton (FOB Facility loading)
• Contract term multiple terms and pricing acceptable
• Minimum BTU/LB
• Maximum acceptable ash content (% by wt.)
• Maximum moisture content (wet basis)
• Diameter and length required (min / max)
• Date of first receipt of pellets, type of load, frequency and quantity, total annual need
• Indication of seasonality of purchase of pellets (e.g., quantity by month, months not needed, etc.)
• Indication if delivery services are needed and type of delivery vehicle (rail, auger truck, gantry truck, dump truck, walking floor truck, etc.)
• Final destination of pellets (end user or aggregator location)

Schedule / Availability

Construction Start:  August 2008

Commercial Operation:  July 2009 [Full Production]

CONTACT FOR PELLET PURCHASE:  Mr. Nunzio Maniaci, Indeck Energy Services, Inc., 600 N. Buffalo Grove Road, Suite 300, Buffalo Grove, IL  60089.  Telephone:  847-947-3742; Facsimile:  847-520-9883.