Intrepid Technology and Resources Inc. (ITR), an Idaho-based biofuels company, signed a preliminary 15-year gas supply agreement with local utility Intermountain Gas, covering all of the expected methane supply delivered to the Intermountain distribution system from ITR’s anaerobic digester technology plants at participating dairies in southern Idaho.

Intermountain has agreed to provide assistance for the installation, operation and maintenance of the gas gathering system that will collect and transport the gas produced by the participating dairies. Prices paid will be determined by current market conditions with a “floor price” to help secure ITR’s financing.

ITR’s prototype methane gas plant near Rupert, ID, combined with a second plant near Wendell, ID, where site preparation work is now under way, is expected to be capable of producing 140 MMcf of gas annually in a biomass process that uses manure from about 10,000 head of cattle. ITR plans to have an additional two to three methane gas plants near completion by the end of 2006, bringing the company’s annual revenue from these operations to about $3 million.

“Our gas purchase and cooperation agreements with ITR will be of benefit to all of Idaho and particularly those who are looking for the most environmentally friendly methods at Idaho’s important and growing dairy industry,” said William Glynn, president of Intermountain Industries Inc., parent company of Intermountain Gas. Intermountain provides gas to more than 250,000 customers in southern Idaho.

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