SOURCE: Catalytica Energy Systems, Inc.

August 10, 2005 16:05 ET

SCR-Tech Awarded Catalyst Cleaning and Regeneration Contract by AES

CHARLOTTE, NC -- (MARKET WIRE) -- August 10, 2005 -- SCR-Tech LLC, a subsidiary of Catalytica Energy Systems, Inc. (NASDAQ: CESI), announced today that it has received a contract from AES Corporation to provide SCR catalyst cleaning and regeneration services for its Somerset Station power generating facility in Somerset, New York.

Under the terms of the purchase order, SCR-Tech will clean and regenerate a full layer of catalyst from one of the SCR systems located at the Somerset plant. This process will extend the useful life of the existing SCR catalyst, providing AES with a lower-cost alternative to purchasing new catalyst and eliminating the need to dispose of spent catalyst. The work is scheduled to be completed over the next few months, after which time the catalyst modules will be stored at SCR-Tech's facility before being reinstalled at the plant site during its next scheduled outage. The Somerset facility operates a single, 675 megawatt (MW) coal-fired power generating unit along with two SCR reactors to control NOx emissions.

This purchase order marks the third time SCR-Tech has been engaged to provide SCR catalyst regeneration services for the Somerset Station facility. This contract is also the latest in a series of SCR catalyst and management services that SCR-Tech has performed for AES as part of a fleet-wide service agreement signed in 2003 associated with its installed U.S. base of more than 25 fossil fuel-fired power generating units equipped with SCR systems.

Dennis Monnin, Team Leader at AES Somerset, stated, "We continue to be extremely pleased with the level of quality and service offered to us by SCR-Tech. This will be the third regeneration that they have performed for us, and we appreciate the substantial cost savings and high level of NOx reduction performance we are able to realize through this service. AES is committed to preserving the environment and maintaining compliance with emissions regulations while simultaneously reducing O&M costs. SCR-Tech's innovative catalyst regeneration process helps us meet those objectives."

SCR-Tech President Bill McMahon commented, "SCR-Tech is very proud of our service capabilities and the strong alliances we have formed with leading utility customers such as AES to help optimize their SCR system operations. Repeat orders are a reflection of the confidence and trust our customers have in us, and we remain committed to continuously setting new standards for quality and innovation so that we are deserving of their ongoing support."

AES is a leading global power company with 2004 revenues of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 124 power facilities and delivers electricity through 15 distribution companies. Its 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit

SCR-Tech LLC, based in Charlotte, North Carolina, is the North American 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 leading provider of innovative emissions solutions for combustion-related applications in the power generation and transportation industries. Find SCR-Tech on the Worldwide Web at

Catalytica Energy Systems, based in Gilbert, Arizona, is a leading provider of innovative products and services to meet the rapidly growing demand for emissions control solutions in the power generation and transportation industries. Through its SCR-Tech subsidiary (, the Company offers a variety of services for coal-fired power plants using selective catalytic reduction (SCR) systems to reduce nitrogen oxides (NOx) emissions. Catalytica Energy Systems' other business activities include the design, development and manufacture of advanced products based on its proprietary catalyst and fuel processing technologies to offer cost-effective solutions for reducing NOx emissions from diesel engines and natural gas-fired turbines. The Company's Xonon® Diesel Fuel Processing technology is designed to facilitate significant NOx reduction from mobile, stationary, and off-road diesel engines by improving the performance of NOx adsorber catalyst systems. Catalytica Energy Systems' commercially available Xonon Cool Combustion® system offers a breakthrough pollution prevention approach for gas turbines to achieve ultra-low emissions power generation through a proprietary catalytic combustion process. Other activities include the development of fuel processing systems for fuel cell applications in stationary, auxiliary, and back-up power applications. Find Catalytica Energy Systems on the Worldwide Web at

This news release contains forward-looking statements regarding the timing associated with SCR-Tech's completion of catalyst cleaning and regeneration services for AES' Somerset facility; 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 need to dispose of spent catalyst; SCR-Tech's ability to help its customers optimize their SCR system operations; and SCR-Tech's ability to continuously set new standards for quality and innovation. 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: that Catalytica Energy Systems may not be able to accurately predict future market opportunities and growth prospects for its SCR-Tech business; possible fluctuations in economic conditions affecting the markets for SCR-Tech's service offerings; the risk that a market may not develop or be maintained for SCR-Tech's service offerings; that there may be unanticipated events that could impact the Company's ability to successfully manage SCR-Tech's business; difficulties or delays in strengthening SCR-Tech's sales and marketing activities or technical capabilities; changes in the environmental requirements relating to NOx emissions; that SCR-Tech may be unable to maintain current or develop future strategic or customer relationships for its services, including with utility and IPP customers; that any decision on the part of a customer to no longer use SCR-Tech's services could negatively adversely impact our business or results of operations; and the other risks set forth in Catalytica Energy Systems' most recently filed Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Catalytica Energy Systems undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances occurring after the date of this release.

Editor's Note: Xonon and Cool Combustion are registered trademarks of Catalytica Energy Systems, Inc., Gilbert, AZ, USA

Contact Information

    SCR-Tech LLC
    Bill McMahon
    (704) 827-8933

    AES Somerset
    Dennis Monnin
    Team Leader
    (716) 795-9501, ext. 5085

    Catalytica Energy Systems, Inc.
    Megan Meloni
    Investor Relations
    (650) 940-6253