HTC Purenergy Inc.

HTC Purenergy Inc.

February 29, 2008 12:38 ET

Loy Yang Power Signs With HTC Purenergy Inc. and EESTech Inc. for a CO2 Capture Feasibility Study

REGINA, SASKATCHEWAN--(Marketwire - Feb. 29, 2008) - HTC Purenergy Inc. (TSX VENTURE:HTC) ("HTC") - Australian based Loy Yang Power, which operates a 2200 MW brown coal fired power station in Victoria's Latrobe Valley, has signed an agreement to undertake a site specific feasibility study into an integrated carbon management system utilizing the HTC Purenergy CCS (CO2 Capture System) technology.

HTC's strategic partner - EESTech Inc. ("EESTech") which is based in Brisbane, Australia, has recently obtained the licensing rights from HTC for the deployment of this technology in Australasia.

EESTech also has a complementary technology in its Hybrid Coal Gas Turbine ("HCGT") system that can produce electricity utilizing waste coal, methane and biomass and can be integrated to become the world's first stand-alone hybrid CO2 capture system that is non-disruptive to industrial emitter plants.

The Purenergy CCS CO2 Capture System is the world's first pre-engineered, pre-built and modularly constructed CO2 Capture System, which can be retrofitted on existing power plants or any large industrial greenhouse gas emitter facility. This carbon capture technology was developed in conjunction with the University of Regina's Green House Gas Technology Centre incorporating over 20 years of CO2 capture testing and product development.

Loy Yang Power Chief Executive Ian Nethercote welcomed the agreement and said "This project will build on our current research and development activities which are focused on identifying new technologies to reduce CO2 emissions from brown coal power stations".

"Identifying and developing viable new technologies will be critical to the sustainable utilization of the Latrobe Valley's abundant brown coal resource. Pre drying and post carbon capture and storage technologies are seen as prospective pathways to achieving low or near zero emissions from brown coal," he said.

Graeme Lynch, Chief Operating Officer of EESTech, said that the signing of the agreement allows EESTech to demonstrate how its market leading CO2 management technologies can deliver a fully optimized, site-specific CO2 processing plant in support of Loy Yang Power's Clean Coal objectives.

"The Purenergy CCS will capture carbon dioxide from the flue gas exhaust of power plants and large industrial emitters and the captured carbon dioxide can then be used for CO2 EOR (enhanced oil recovery) or be stored underground," commented Mr. Lionel Kambeitz, CEO of HTC.

"This system will be pre-engineered, pre-built and modularly constructed and will be assembled at emitter sites around the world at a much lower cost than other systems that have to be custom built on site." Mr. Kambeitz added.

HTC Purenergy Inc. corporate developments can be followed on 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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