SOURCE: W2 Energy, Inc.

W2 Energy, Inc.

March 22, 2011 10:41 ET

W2 Energy Begins Testing Coal-Water Slurry Reactor

GUELPH, ON--(Marketwire - March 22, 2011) -  W2 Energy, Inc., a clean energy company (www.w2energy.com) (PINKSHEETS: WTWO), is pleased to announce that it has developed a new plasmatron reactor capable of using a coal-water slurry as a hydrocarbon feedstock.

W2 Energy created a 60/40 coal-water slurry, gasified it in a conventional gasifier and tested the resulting syngas. The product produced a clean high value synthesis gas without the undesirable products of conventional coal gasification.

The company then tested the feedstock in its modified plasmatron torch which produced similar results.

W2 Energy has begun construction on a new NT Plasmatron low temperature gasifier which will gasify the coal-water slurry.

The NT Plasmatron can use this new feedstock to make clean energy from coal. The addition of the water immediately makes the coal 40% cleaner than conventional coal. In addition, this coal-water slurry can be used as a transportation fuel, with a vehicle powered by a small NT Plasmatron and a fuel tank giving a range of potentially hundreds of miles with a cost per gallon of cents rather than dollars.

Based on preliminary calculations, coal-water slurry from inexpensive coal or lignite would contain approximately one-half of the energy per pound of gasoline at well less than one-tenth of the price.

"We think our coal-water slurry will usher in a cleaner age of energy production," says Mike McLaren, President and CEO of W2 Energy. "Our NT Plasmatron can take coal, which has been considered a dirty fuel, add plain water, and make a cleaner and radically less expensive replacement for petroleum-based liquid fuels. Exciting stuff."

W2 Energy trades in the United States on the OTC market under the symbol "WTWO."
 For further information, please contact Mike McLaren at (519) 800-7556 or go to www.w2energy.com

Note: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause results to differ materially. Such risks, uncertainties and other factors include but are not limited to new economic conditions, risk in product development, market acceptance of new products and continuing product demand, level of competition and other factors described in reports and filings with regulatory bodies.

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