HTC Purenergy Inc.
TSX VENTURE : HTC

HTC Purenergy Inc.

May 20, 2008 12:33 ET

HTC Purenergy and EESTECH Sign Agreement for Carbon Capture With Santos

REGINA, SASKATCHEWAN--(Marketwire - May 20, 2008) - HTC Purenergy (TSX VENTURE:HTC) ("HTC") and EESTECH have entered into an agreement to explore business opportunities with Santos (www.santos.com) for carbon capture, storage and enhanced oil recovery using carbon (CO2) from its own gas fields.

EESTECH is publicly traded on the US Bulletin Board and operates a technical facility in Brisbane, Australia. EESTECH is implementing the commercialization of HTC's Carbon Management Technologies in Asia-Pacific including the Purenergy CCS CO2 Capture technology, which is the world's first pre engineered, modular, 1000 tonne per day carbon capture system known as the "Purenergy CCS IOOO".

The HTC Purenergy system was developed over the past fifteen years at the world renowned International Test Centre for Carbon Capture at the University of Regina, Saskatchewan, Canada. The system captures CO2 from the flue gas stream of coal and gas fired power stations for subsequent storage in either underground aquifers or depleted oil and gas fields.

The HTC Purenergy carbon capture technology can be retrofitted onto existing power plants. When integrated with EESTECH's Hybrid Coal Gas Turbine (HCGT), which utilises waste coal and methane to produce the energy required for carbon capture, the cost of carbon capture is significantly reduced.

Santos acting Managing Director David Knox welcomed the agreement, which he said would further complement Santos's commitment to the research and development of carbon capture and storage into depleted oil and gas fields.

"This project will build on our current development activities focusing on the Moomba Carbon Storage Project which has the long-term objective of establishing a large-scale carbon storage hub at Moomba, which could eventually store up to 20 million tonnes of carbon dioxide per year and 1 billion tonnes over the life of the project.

"It would do so by injecting carbon dioxide into the depleted and/or depleting oil and gas reservoirs of the Cooper Basin, thereby providing a secure storage solution for major carbon emitters in Queensland, New South Wales and South Australia, as well as stimulating further gas flow from the field, he said".

Mr John Hanson, representing HTC and EESTECH said that the signing of the agreement will allow HTC and EESTECH to demonstrate how its market leading CO2 management technologies could deliver fully optimized, large scale, site-specific CO2 capture solutions in keeping with Santos's objectives.

"We are delighted with the signing of this agreement and look forward to a long-term collaboration with Santos," he said.

The agreement with Australian based Santos follows the recent announcement of a feasibility study with Loy Yang Power, which operates a 2200 MW brown coal fired power station in Australia's Latrobe Valley.

Santos is a major Australian oil and gas exploration and production company with interests and operations in every major Australian petroleum province and in Indonesia, Papua New Guinea, Vietnam, India, Bangladesh, Kyrgyzstan and Egypt. They are Australia's largest domestic gas producer, with 59.1 million barrels of oil equivalent produced in 2007 and have more than 1,750 employees.

HTC Purenergy corporate developments can be followed on www.htcenergy.com and is traded under the symbol HTC.

The TSX Venture Exchange Inc. does not take any responsibility for the adequacy or accuracy of the information contained in this news release.

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