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Xebec Adsorption Inc.

September 30, 2008 23:59 ET

QuestAir and Terasen Gas sign Memorandum of Understanding for biogas project development in B.C.

Under unique program, biogas from organic waste to be purified into clean, renewable energy source for Terasen Gas customers

BURNABY, BC, Sept. 30 - QuestAir Technologies Inc. ("QuestAir" or
"the Company"; TSX: QAR; AIM: QAR) and Terasen Gas Inc. ("Terasen Gas") have
signed a non-binding Memorandum of Understanding whereby the companies will
work jointly on the development of potential projects to produce supplies of
bio-methane from organic waste. This clean energy source would be injected
into Terasen Gas's existing pipeline system for distribution to homes and
Under terms of the two-year non-binding memorandum, QuestAir will support
the Terasen Gas Request for Expressions of Interest in biogas projects.
QuestAir and Terasen Gas will share information regarding market developments,
government policy and technology on purifying biogas to a quality suitable for
injection into Terasen Gas pipelines. QuestAir will also help identify
potential biogas opportunities in B.C., and will participate in stakeholder
workshops planned for B.C. this fall.
"We are delighted to be working with Terasen Gas," said Andrew Hall,
President and CEO of QuestAir. "The utility has taken a leadership role in
facilitating the development of a biogas market in British Columbia through
its recent announcement of a request for expressions of interest for biogas
upgrading projects."
The initiative supports the B.C. Energy Plan's objective to increase the
province's production of clean and renewable energy, while reducing emissions
from waste methane, which is 21 times more powerful in warming the atmosphere
than CO2.
"This is another step in our plan to deliver alternate energy sources
that can be used by our customers to heat their homes and businesses and
provide fuel for water heaters, fireplaces and barbecues," said Doug Stout,
Terasen Gas Vice President, Marketing and Business Development. "Capturing an
untapped, waste energy source is one component of our commitment to meet the
B.C. government's clean energy objectives."
QuestAir, Terasen Gas and Metro Vancouver are also co-operating on a
$1.1 million biogas upgrading project at the Lions Gate Wastewater Treatment
Plant in West Vancouver, which will recover and upgrade biogas generated from
the digestion of municipal sewage. Renewable natural gas from this project
will be injected into the Terasen Gas distribution system in West Vancouver,
and supply renewable energy to heat approximately 100 homes. The British
Columbia Innovative Clean Energy (ICE) Fund has committed $366,000 towards
this project.
QuestAir has supplied methane purifiers to 10 plants worldwide that
upgrade biogas to biomethane, for injection into existing natural gas
pipelines and distribution to homeowners, or for use as a renewable vehicle

About QuestAir Technologies Inc.

QuestAir Technologies, Inc. is a developer and supplier of proprietary
gas purification systems for several large international markets, including
biogas production, natural gas processing and oil refining. QuestAir is based
in Burnaby, British Columbia and its shares trade on the AIM Market of the
London Stock Exchange Plc. and on the Toronto Stock Exchange under the symbol

About Terasen Gas Inc.

Terasen Gas delivers natural gas and propane through three companies that
make up the Terasen Gas group: Terasen Gas Inc., Terasen Gas (Vancouver
Island) Inc. and Terasen Gas (Whistler) Inc. The companies share common
Terasen Inc. ownership and are indirect wholly owned subsidiaries of Fortis
Inc. Fortis Inc., the largest investor-owned distribution utility in Canada,
serves two million gas and electric customers and has more than $10 billion of
assets. Its regulated holdings include Terasen Gas and electric utilities in
five Canadian provinces and three Caribbean countries. Fortis Inc. owns
non-regulated hydroelectric generation assets across Canada and in Belize and
upper New York State. It also owns hotels and commercial real estate in
Canada. Fortis Inc. shares are listed on the Toronto Stock Exchange and trade
under the symbol FTS. Additional information can be accessed at
www.fortisinc.com or www.sedar.com.

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, such statements
use such words as "anticipate", "believe", "plan", "estimate", "expect",
"intend", "may", "will" and other similar terminology. These statements
reflect current expectations regarding future events and operating performance
and speak only as of the date of this press release. Forward-looking
statements involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not such results will be achieved. A number
of factors could cause actual results to differ materially from the results
discussed in the forward-looking statements.

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Contact Information

  • QuestAir Technologies Inc.
    Andrew Hall
    Phone:(604) 453-6967
    Email: hall@questairinc.com
    Sherry Tryssenaar
    Phone: (604) 453-6902
    Email: tryssenaar@questairinc.com
    UK media contact:
    Charles Ryland or Ben Willey
    Buchanan Communications
    Phone: +44 (0) 20 7466 5000
    Canadian media contact:
    Ian Noble
    Karyo Communications
    Phone: (604) 623-3007;
    Canaccord Adams
    Robert Finlay
    Phone: +44 (0) 207 050 6500
    Terasen Gas Inc.
    Michael Chisholm
    Corporate Communications Manager
    (604) 576-7300