December 11, 2000

Thermal Energy emission reduction system to be commercial-scale tested at Ohio power plant

The first commercial-scale demonstration of Thermal Energy International's ThermaloNOX¿ emission reduction system will be carried out at the Conesville, Ohio coal-fired generating station. Testing of the Canadian technology will be financed by American Electric Power (AEP), owner of the Conesville plant. AEP and Ottawa-based Thermal Energy estimate the value of the project at about $22.5 million (Cdn).

   AEP will install Thermal Energy's ThermaloNOX system on one of the power station's units for an eight-to-twelve-week test period. The system, as designed and supplied by Thermal Energy, will remove at least 75% of the nitrogen oxide (NOX) emissions from the 375MW unit. The installation is expected to demonstrate and validate the performance and effectiveness of the technology.

AEP Pro Serv, a non-regulated subsidiary of AEP, will be the exclusive licensee for applications of the ThermaloNOX technology in North America. AEP also has an option to acquire a 10% interest in Thermal Energy.

   Thermal Energy and AEP Pro Serv will work together to set up the demonstration facility, which should be ready for start-up during the first quarter of 2001. They will operate the system for up to 12 weeks, gathering test and evaluation data. The system is being designed for efficient conversion to a permanent installation.

   The ThermaloNOX process incorporates Thermal Energy's original Flu-Ace® technology for heat recovery and removal of multiple air pollutants (including particulates, hydrocarbons, volatile organic compounds, and acid and greenhouses gases) in a two-stage system. The first stage is a gas-phase chemical reaction which converts nitrogen oxide (NO) into nitrogen dioxide (NO2) using a compact gas reactor. The second stage uses the Flu-Ace system to remove 98% of the NO2, which is absorbed into water as nitrates which can be recycled as commercial fertilizer. The first-stage NO-to-NO2 reactor can be adapted to upgrade existing wet scrubber air pollution control (APC) systems to a ThermaloNOX/APC system.

   More information is available from Stuart McCarthy at Thermal Energy, 613/723-6766, ext 205, E-mail mccarthy@thermalenergy.com , or on the company's Web site, www.thermalenergy.com .

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