Riverstone to Join Blackstone Energy in Building a 15 Million-Gallon-Per-Year Ethanol Plant in Collingwood, Ontario

New York, NY – Riverstone Holdings ("Riverstone") today announced its plans to join Blackstone Energy Inc. ("Blackstone Energy") to convert an existing starch production facility in Collingwood, Ontario, into a 15 million-gallon-per-year ethanol plant. Carlyle/Riverstone Renewable Energy Infrastructure Fund I, L.P. ("CRREIF") will purchase a 77% interest in Collingwood Ethanol G.P. Collingwood Ethanol expects to start construction pending provincial and federal approvals, with ethanol production expected to come online mid-2007.

The plant is expected to create 50 jobs as well as an additional 20 indirect jobs in service of the plant. Construction-related jobs are expected to employ approximately 50 people. Once it comes online, the plant will meaningfully increase Ontario’s ethanol output.

Ethanol is a renewable, clean-burning fuel that contains a high percentage (35%) of oxygen that encourages a more complete combustion of vehicle fuel thereby reducing harmful emissions.

"We are very excited to partner with the team at Blackstone Energy. We expect to see large growth in the ethanol industry in North America and anticipate additional opportunities to work together with Blackstone Energy. Biofuels generally will play an increasing role in helping to reduce our dependence on fossil fuels." said Stephen Schaefer, managing director of Riverstone.

"The ethanol production from the Collingwood facility will help meet national and provincial renewable fuel targets, and the corn supply and labor will be drawn from the local community," said Curtis Chandler, executive director of Blackstone Energy. "This makes the project a national, provincial and local success in our view and we look forward to bringing other exciting renewable fuel opportunities to market with Riverstone in Ontario in the future."

About Blackstone Energy

Blackstone Energy Inc. is a leading Canadian energy risk management provider and has deep roots in North America’s deregulated energy markets. Its principals have successfully developed and operated various aspects of the energy value chain, including commodity brokerages, natural gas marketing companies and natural gas storage facilities. For more information see, www.blackstoneenergy.com/ .