SOURCE: Catalytica Energy Systems, Inc.

August 14, 2007 16:05 ET

SCR-Tech Announces $650,000 Order for Catalyst Regeneration Services and a Three-Year SCR Management Contract

CHARLOTTE, NC--(Marketwire - August 14, 2007) - SCR-Tech, a subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), announced today that it has secured contracts from two leading Midwestern utility customers, including an order totaling approximately $650,000 to provide SCR catalyst regeneration services and a three-year SCR management contract.

Under the terms of the first contract, SCR-Tech will clean and regenerate catalyst from an SCR system located at one of the customer's coal-fired power plants. This process will extend the useful life of the existing catalyst, providing a lower cost alternative to purchasing new catalyst and eliminating the costs and environmental concerns associated with land filling spent catalyst. This order marks the fifth layer of SCR catalyst that SCR-Tech has been engaged to regenerate for this particular customer.

The second contract is a three-year agreement signed with a new customer to provide SCR management consulting services. As part of the long-term agreement, SCR-Tech will provide ongoing evaluation and guidance on effective SCR system operation and catalyst management strategies, with the objective of assisting the customer with optimizing the performance of its SCR systems while reducing operating and maintenance costs and achieving cost-effective NOx compliance.

SCR-Tech President Bill McMahon stated, "The onset of more stringent NOx emissions regulations and year-round SCR operation beginning in January 2009 under the EPA's Clean Air Interstate Rule is creating additional challenges for our customers. In addition to our proven SCR catalyst regeneration technology that fully restores catalyst activity for significantly less cost than purchasing new, we offer a comprehensive array of SCR management services that can help customers both prepare for these new regulatory requirements and further improve the economics of plant operation. We are pleased that new and existing customers have recently begun to take advantage of these services as part of their NOx compliance strategy. We look forward to developing additional long-term SCR and catalyst management partnerships in the months ahead as we address the growing market demand for cost-effective environmental compliance solutions."

SCR-Tech, based in Charlotte, North Carolina, is the leader in catalyst regeneration technologies and management services for selective catalytic reduction (SCR) systems used by coal-fired power plants to reduce nitrogen oxides (NOx) emissions. The Company offers a wide variety of services, including SCR catalyst cleaning, rejuvenation and regeneration, as well as SCR system management and consulting services, to help power plant operators optimize their SCR system operation while reducing overall operating and maintenance costs. SCR-Tech is a wholly owned subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), a provider of innovative products and services to meet the growing demand for clean energy production. For more information on SCR-Tech, please visit www.SCR-Tech.com.

Catalytica Energy Systems, based in Tempe, Arizona, provides innovative products and services to meet the growing demand for clean energy production, with a focus on cost-effective emissions control solutions for the coal-fired power generation industry. Through its SCR-Tech subsidiary (www.SCR-Tech.com), the Company offers a variety of services for coal-fired power plants that use selective catalytic reduction (SCR) systems to reduce nitrogen oxides (NOx) emissions. These services include SCR catalyst management, cleaning and regeneration, as well as consulting services to help power plant operators optimize efficiency and reduce overall NOx compliance costs. Find Catalytica Energy Systems on the Worldwide Web at www.CatalyticaEnergy.com.

This news release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. These statements include, but are not limited to, those regarding the ability of SCR-Tech's cleaning and regeneration process to successfully extend the useful life of SCR catalyst, provide a lower cost alternative to catalyst replacement, and eliminate the costs and environmental concerns associated with land filling spent catalyst; SCR-Tech's ability to assist its customers with optimizing the performance of their SCR systems, reducing operating and maintenance costs, achieving cost-effective NOx compliance, and improving the economics of plant operation; the prospects and timing associated with securing additional long-term SCR and catalyst management contracts; and the Company's forecast for increased market demand for cost-effective environmental compliance solutions. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others, the risks associated with the development, generally, of Catalytica Energy Systems' and SCR-Tech's overall strategic objectives; possible fluctuations in economic conditions affecting the markets for the Company's products and services; the risk that a market may not develop or be maintained for the Company's products and services; the existence of unanticipated technical, commercial or other setbacks related to the Company's products and services that could result in termination of one or more of its customer contracts; unanticipated events that could impact the Company's ability to manage the SCR-Tech business; difficulties or delays in executing SCR-Tech's business strategy; changes in the environmental requirements relating to certain emissions; the uncertainty of project completion and delivery timelines; the possibility that the Company may be unable to maintain current or develop future strategic relationships for its products and services, including with utility customers; and the other risks set forth in the Company's most recent Form 10-KSB and subsequent Forms 10-QSB filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances occurring after the date of this release.

Contact Information

  • CONTACT:
    SCR-Tech
    Bill McMahon
    President
    (704) 827-8933

    Catalytica Energy Systems, Inc.
    Megan Meloni
    Investor Relations
    (650) 631-2847