Compact Power Holdings PLC
02 August 2007


For Immediate Release 2 August 2007

                          Compact Power Holdings plc:

                 Strategic Partnership with Severn Trent Water

Compact Power is pleased to announce that Severn Trent Water has selected
Compact Power as a partner for its sludge and biomass to energy strategy. The
appointment follows a detailed review by Severn Trent of all advanced thermal
treatment technologies available on the market.
The partnership will benefit from new incentives proposed under the Government's
latest Energy White Paper which gives double Renewable Obligation Certificates
(ROCs) to electrical output from pyrolysis and gasification technologies.
Compact Power will work in collaboration with TVD (UK) Limited, framework
suppliers of the DryVac(R) sludge drying technology, to build and operate plants
for the conversion of sewage sludge and other biomass feedstocks into renewable
energy. Detailed discussions are already underway for the construction of the
first plant which is due to be operational in 2009, with a programme of
potential projects planned for other selected sites.
Nic Cooper, Chairman of Compact Power, says:
"This is an important development for us. Our strategy is to work with
industrial partners in the commercial development of different applications of
our technology. We are very pleased that one of the largest water companies in
the world has recognised the contribution that we can make to delivering
sustainable solutions for their core business. We look forward to a fruitful
collaboration with Severn Trent."
Jason Lingard, General Manager of Commercial Services, Severn Trent Water says:
"We have been very impressed by Compact Power's achievement in developing a new
technology which has been operating successfully for more than 6 years to very
high safety and environmental standards. We expect this collaboration to create
significant opportunities for increasing our renewable energy generation and
further reducing our carbon footprint".
                                     -ends-



Notes to editors

About Compact Power

Compact Power (LSE: CPO) a company listed on The London Stock Exchange (AIM) has
developed an innovative technology based on pyrolysis, gasification and high
temperature oxidation for the safe, economic and environmentally friendly
processing of a wide range of wastes and biomass with energy recovery. The
company operates a commercial plant at Avonmouth, Bristol.

For more information, visit www.compactpower.co.uk


Contacts

Compact Power
Nic Cooper - Chairman
Richard Hogg - Business Development Director
Tel: 0117 980 2900


Blue Oar Securities Plc

Mike Coe - Director, Corporate Finance
Tel: 0117 933 0020

Winningtons Financial PR
Paul Vann
Tel: 0117 920 0092




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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