SOURCE: Catalytica Energy Systems, Inc.

May 15, 2007 16:05 ET

SCR-Tech Announces SCR Catalyst Regeneration Orders Totaling $1.0 Million

CHARLOTTE, NC -- (MARKET WIRE) -- May 15, 2007 -- SCR-Tech, a subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), announced today that it has secured new contracts totaling approximately $1.0 million from a leading independent power producer in the Southeast and a top Midwestern utility to provide SCR catalyst regeneration services.

Under the terms of the purchase orders, SCR-Tech will clean and regenerate catalyst from SCR systems located at coal-fired power plants operated by each customer. 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.

SCR-Tech President Bill McMahon stated, "The first order marks the fifth layer of SCR catalyst that SCR-Tech has been engaged to regenerate for this particular power producer, reflecting the strong alliances we are forming with our customers and their confidence in our service capabilities. The second order is from a new customer. We are pleased to add this customer to a growing list of utilities and independent power producers who have chosen our cost-saving approach to extending catalyst life. This order reflects our continued progress in expanding our base of customers operating multiple SCR systems that hold the potential for significant future business as needs arise. Through continuous technology innovations and our commitment to superior service, we look forward to maintaining long-standing relationships with both of these customers by helping them to optimize their SCR system operation and achieve NOx compliance at lower costs."

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 World Wide 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 continue forming strong alliances with its customers and building confidence in its service capabilities; SCR-Tech's ability to continue expanding and maintaining long-standing relationships with its customer base; and the prospects for significant future business. 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 the Catalytica Energy Systems' 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