SOURCE: Energy Quest, Inc.

March 11, 2008 09:30 ET

Energy Quest Board Approves PyStR™ Hydrogen Demonstration Unit

Company to Construct a 1 Million SCF per Day Portable Hydrogen Plant

HENDERSON, NV--(Marketwire - March 11, 2008) - Energy Quest, Inc. ("EQI") (OTCBB: EQST), an emerging leader in alternative energy and the development and production of hydrogen-enriched alternative fuels in an environmentally responsible manner, today announced the Board of Directors approved the construction of a portable PyStR™ Hydrogen unit for demonstration to the petroleum industry in Alberta.

In 2005 Energy Quest obtained the exclusive rights to a new innovative hydrogen generation technology referred to as the PyStR™ process. PyStR, pronounced "Pie Star," is an acronym derived from "Pyrolitic Steam Reforming." This process can directly produce high purity hydrogen from biomass and other carbonaceous feed-stocks such as oil sands, coal and petroleum coke. The PyStR™ technology involves the simultaneous pyrolysis and steam reforming of virtually any carbon-based material. It produces separate high purity streams of hydrogen (H2) and carbon dioxide (CO2) in relatively low cost stainless steel or refractory lined vessels. CO2 is captured in the process and can be used for enhanced oil recovery or many other applications where pure CO2 is required.

The technology has the potential to significantly reduce hydrogen costs to levels much lower than those of the present steam methane reforming methods. The technology can use virtually any carbonaceous material to produce hydrogen. PyStR™ can directly produce near pure hydrogen in a single step. PyStR™ does not require shift catalysts, separation membranes, oxygen separation, catalytic hot and cold shift reactors, pressure swing adsorption towers or liquefaction pressures. Hydrogen embrittlement is avoided altogether by combining pyrolysis with reforming in a direct contact, refractory lined vessel. This eliminates the greatest system maintenance cost associated with current conventional technologies. In addition, the system utilizes a very dense phase continuous closed circuit recycle regeneration loop with an advanced solids/gas separation moving bed filter, which eliminates the need for a separate solids removal system.

The PyStR™ process involves 3 innovative steps. In step 1, fuel and steam are fed directly into the heat sink of lime sorbent. As the solid fuel pyrolyzes, carbon monoxide and carbon dioxide immediately react with calcium oxide to form limestone while near pure hydrogen exits the reactor vessel along with some excess steam. Step 2 involves an innovative separation of solids from gases and removal of ash from the process. Step 3, or calcination, includes another innovative PyStR™ process wherein a small portion of product hydrogen is combusted in air resulting in almost pure nitrogen and water stream as well as a separate almost pure carbon dioxide stream produced in an indirect jetting. Below is a picture of the PyStR™ pilot plant and a schematic diagram describing the PyStR™ process.

"We are pleased to have received Board approval to construct the PyStR Hydrogen transportable demonstration unit. This will enable Energy Quest to demonstrate the PyStR process to potential clients presently using hydrogen from conventional sources. We will be able to demonstrate to the hydrogen users the significant savings that can be achieved using the PyStR low cost process," stated Wilf Ouellette, President and CEO of Energy Quest, Inc. "We expect this to open the doors to mutually beneficial opportunities with present and future hydrogen users."

About Energy Quest

Energy Quest is a diversified energy company with interests in both conventional and renewable energy sources. The company's mission is to bring to market new technologies enhancing existing energy production as well as developing new energy sources. The company intends to secure energy projects using the PyStR and M2 gasifier and the acquisition of existing profitable alternative energy companies expected to provide significant positive cash flow to the company while being an ideal location for development, demonstration, and operation of many of the company's new technologies. This is the first of many new technologies Energy Quest plans to announce and deploy over the coming months that will demonstrate that it is possible for an energy company to be both environmentally friendly and highly profitable.

Energy Quest through its subsidiaries, Syngas International Corp. and Syngas Energy Corp., is an emerging leader in the development and marketing of low-cost alternate fuels worldwide. Through superior technology, the Company is focused on becoming a GreenPowerhouse™. Record energy prices combined with the global focus moving rapidly towards addressing pollution, has heightened the need for sustainable, zero emission energy. Energy Quest's technology is based on clean renewable energy positioning it to benefit from global trends.

Forward-Looking Statements

From time to time, the company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as actual results could differ and any forward-looking statements should be considered accordingly.

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