ThermoEnergy

January 05, 2005 09:01 ET

ThermoEnergy Announces $2.3MM Federal Funding for Energy Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: THERMOENERGY

OTC Bulletin Board SYMBOL: TMEN

JANUARY 5, 2005 - 09:01 ET

ThermoEnergy Announces $2.3MM Federal Funding for
Energy Projects

LITTLE ROCK, Ark.--(CCNMatthews - Jan 5, 2005) -

ThermoEnergy Corporation (OTCBB:TMEN) announced today the authorization
of $2.3 million in Federal funding for the rapid development and
commercialization of the Company's patented new zero air emission power
plant technology known as the TIPS process. "This money will be spread
over three separate projects, each of which will allow us to bring this
technology to market at a time when not only the U. S., but the world,
greatly needs such a technology," said Dennis Cossey, President and CEO
of ThermoEnergy Corporation.

TIPS, an acronym for ThermoEnergy Integrated Power System, eliminates
the atmospheric emissions of mercury, acid gases and particulates from
fossil fuel burning power plants. In addition, TIPS captures and
recovers carbon dioxide (CO2) in liquid form ready for sequestration or
beneficial reuse. With TIPS, harmful air emissions from power plants,
which endanger lives and as well as the environment, will become a thing
of the past.

TIPS produces steam and/or synthesis gas from a diverse mix of energy
resources, including coal, natural gas, oil, biomass or various
'opportunity fuels' such as petroleum coke, waste oils, etc. Although
TIPS represents a totally new thermodynamic approach to generating power
from fossil fuels, all of its process components consist of proven, off
the shelf equipment currently being used in other industries worldwide.
This reduces by years the time it normally takes a new technology to go
from concept to commercial deployment. "With this funding, we expect to
be able to have a large-scale prototype system up and operating in late
2006 or early 2007," said Dennis C. Cossey, CEO of ThermoEnergy
Corporation.

TIPS is the realization of over five years of basic research and
development. "Based on current process modeling, we are confident that
we can build one of our new zero air emission power plants for about the
same price as a conventional coal-fired power plant, outfitted with the
requisite air scrubbing equipment," said Cossey. In addition to new
construction, TIPS can be used as a cost-effective method of
retrofitting existing power plants, converting them to zero air emission
facilities. Zero air emission power plants will have an enormous
advantage over conventional power plants. Not only will TIPS plant
operators enjoy maximum fuel flexibility, but will be immune from the
cost associated with trying to meet future Clean Air requirements,
including potential CO2 reduction requirements.

TIPS also provides a unique solution to high energy costs for many
infrastructure industries such as chemical processing, oil refineries,
food processing and pulp & paper. These facilities generate and consume
enormous quantities of steam each day in the process of manufacturing a
wide variety of products. Fossil fuels represent the only fuel source
capable of delivering these energy requirements. Over ninety-percent
(90%) of these facilities use natural gas as their primary fuel source.
However, the rising cost of natural gas has marginalized the profits on
many bulk commodity products produced by these industries. But most of
them are located in nonatainment areas, meaning local air quality does
not meet even minimal air quality standards. Unlike conventional
technology, TIPS will allow them to switch to vastly cheaper feedstocks
such as coal or petroleum coke. "TIPS is the only solution of which we
are aware that will enable these industries to move to alternative fuel
sources to substantially reduce energy costs within the next few years,"
said Cossey.

An additional economic factor relates to TIPS' ability to generate a
variety of emission credits for its operators. Buying and selling of NOx
and SOx emission credits is expected to greatly increase over the next
five years. "While green house gas (GHG) credit trading is relatively
new, the ratification of Kyoto could significantly impact this market
overnight," said Dennis Cossey. TIPS will generate 3 tons of CO2
equivalent for each 1 ton of coal processed. According to Cossey,
"Analysts at CO2e, an emission trading firm owned by Cantor Fitzgerald
and Price Waterhouse Coopers, have forecasted the size of the future
global greenhouse gas market to range from US$10 billion to US$1
trillion by 2010."

About ThermoEnergy

Founded in 1988, ThermoEnergy is an integrated technologies company
engaged in the worldwide commercialization of patented and/or
proprietary municipal and industrial wastewater treatment and power
generation technologies. Additional information on the Company and its
technologies can be found on its website at www.thermoenergy.com.

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE "FORWARD
LOOKING" STATEMENTS, USUALLY CONTAINING THE WORD "BELIEVE", "ESTIMATE",
"PROJECT", "EXPECT" OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS
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FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO
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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    ThermoEnergy Corporation
    For Technology
    Alex Fassbender, 509-375-0847
    or
    For Corporate
    Dennis C. Cossey, 501-376-6477
    www.thermoenergy.com