Clean Energy enters into a Joint Venture agreement with EnEco Industries Ltd. for municipal solid waste gasification opportunities in Mexico OTC/BB: CECU VANCOUVER, Sept. 30 /PRNewswire-FirstCall/ -- Clean Energy Combustion Systems Inc. ("Clean Energy") (OTC BB: CECU) is pleased to announce the formation of a Joint Venture with EnEco Industries Ltd. of Vancouver to promote the sale or license of EnEco's Controlled Oxidation Reaction Environment or "CORE" gasification system in Mexico to safely and cleanly dispose or recycle solid municipal wastes that would otherwise be directed to landfills, as well as other solid wastes such as medical waste, tires and selected wood wastes. Under the Joint Venture, Clean Energy will take the lead in procuring projects and financing, while EnEco will handle all project engineering activities. All profits from the sale or licensing of the CORE gasification system in Mexico will be split 50/50 between the parties. As part of the Joint Venture, Clean Energy will allow EnEco to use Clean Energy's oscillating burner technology for the secondary combustion process in the CORE gasification system. Should the integration of Clean Energy's oscillating burner technology with the CORE gasification system work as anticipated, the parties anticipate expanding the Joint Venture to other countries or granting EnEco a license to use the technology in its CORE system for solid municipal waste gasification applications. The parties have entered into the Joint Venture in furtherance of continuing discussions with senior Mexican government officials about the potential use of the CORE gasification system to gasify solid municipal wastes in lieu of developing or increasing landfills. These officials have stated their desire to procure technology that can both economically process and dispose of municipal solid waste in an environmentally clean manner as well as co-generate power to assist in reducing the country's critical shortages in electrical power. As part of these discussions, the Joint Venture has proposed to commence construction by 2005 of four CORE gasification pilot plants in four of Mexico's largest cities, and have those plants under operation by 2006. Each pilot plant would process 600 tons per day of a combination of municipal solid wastes, hospital waste, tires and selected wood wastes. Steam generated in the heat recovery process would drive two 10 Megawatt steam turbines and generators for a total electrical output of 18.8 Megawatts. Electrical energy from the plant would be considered "base load power" or "firm" power which could be relied on as a constant source of power to the local power grid. All ferrous and non-ferrous metals contained in the solid waste would be recovered in their original form and sold to recycling markets without contaminating the resultant ash with heavy metals. Glass, sand, and ash recovered from the gasification process can also be used for building materials. Additional plants would be constructed upon satisfactory operation of the pilot plants. Executives of Clean Energy and EnEco will be meeting with senior government officials in Mexico next week to discuss the proposal. The CORE gasification system is different in design, operation and application than Clean Energy's proprietary Mark V ecoPhaser gasification system, which can be used to gasify a wide variety of "homogenous" waste materials, such as pulp and wood wastes from primary industrial processes, processed agricultural residues, and animal wastes. These applications are not generally considered to constitute municipal solid wastes and, as such, Clean Energy retains the right under the Joint Venture to market the ecoPhaser gasification system in Mexico for these applications outside the Joint Venture. Nevertheless there may be a number of complimentary solid waste applications or subprocesses for which the ecoPhaser gasification system will be appropriate to enhance the overall process, such as the gasification of selected wood wastes to increase energy production, in which case these applications will be governed under the Joint Venture on the same basis as EnEco's Core gasification system. EnEco is a private company, incorporated in 1991 with the intent to solve municipal solid waste environmental problems with economical solutions. EnEco has since installed more than a dozen municipal solid waste gasifiers, some in continuous operation since 1992. According to Mr. Ross Dickenson, President of EnEco "We are very excited to pursue the joint venture with Clean Energy, particularly since both EnEco and Clean Energy have recently been pursuing a number of government contacts in Mexico which we believe may result in significant contracts. Further, since the beginning of the year we have closely examined the operation of Clean Energy's oscillation combustion technology as used in the secondary chamber of its ecoPhaser gasification system, and believe that the use of that technology as the secondary combustion chamber in our CORE gasification system will have similar benefits in terms of both energy efficiency and reduced emissions, thereby lending our system additional competitive advantages in procuring contracts. Should the oscillating burners operate as anticipated, we look forward to working with Clean Energy in broadening the scope of our technology sharing for municipal waste applications to additional countries." According to Mr. R. Dirk Stinson, President of Clean Energy "The joint venture with EnEco is a continuation of our strategy to incorporate our oscillating combustion technology into proven, commercial products, in order to more quickly introduce our innovative oscillating combustion system into the market to generate revenues and profits. Our ability to introduce our oscillating burner to the market via EnEco's CORE gasification technology will assist in demonstrating its effectiveness in a commercial context. This will open doors for other applications of our burner technology, such as boilers and water heaters. The profits generated from the sale of EnEco's CORE gasification systems, together with the "proof" of the commercial operability of our oscillating combustion technology, should allow us to accelerate our overall sales and marketing activities. Also, due to the high output capacities of EnEco's gasification system, it represents a "big ticket" project with both profits and margins significantly higher than we would ordinarily receive for the mere licensure of our technology." Background on Clean Energy and Oscillating Combustion. Clean Energy is a development-stage U.S. public company based in Vancouver, British Columbia, Canada. The company's principal oscillating combustion technology is a unique high-efficiency valveless combustor technology that operates on the principles of cyclical combustion, originally developed for aerospace propulsion. The company currently holds 6 patents in this area. This patented oscillating combustion technology is superior to the standard, steady-state combustion technology currently used in the heat transfer industry in terms of both energy efficiency and consequential fuel cost savings as well as significantly reduced NOx and other emission levels. The company's oscillating combustion technologies can be used in a wide variety of systems that burn gaseous and hydrocarbon-based fuels and waste matter to produce thermal energy for heat utilization applications and the onsite generation of electricity. The company will either design, manufacture, and market products incorporating its environmentally friendly and fuel efficient technologies, such as its gasification system, or license or design, manufacture, and sell its products for incorporation into systems marketed by other companies. For further information visit Clean Energy's Website at http://www.clean-energy.com/ or contact: Clean Energy Combustion Systems Inc. Telephone: 604-681-9337 Facsimile: 604-681-9354 Email: Forward Looking Statements: Clean Energy's development plans and the prospective potential of its Joint Venture with EnEco as described in this news release constitute "forward looking statements" within the meaning of the United States federal securities laws that involve risks and uncertainties. Actual results may vary substantially from expectations as a result of a variety of factors including, by way of example and not limitation, Clean Energy's financial requirements, current lack of capital and prospective inability of the Joint Venture to satisfactorily procure orders from the Mexican government, financing for the Joint Venture and changes in Clean Energy's business plan and corporate strategies; and the various risks and uncertainties disclosed by Clean Energy in its various reports filed from time-to-time with the SEC. Readers are urged to carefully review and consider the various disclosures made by Clean Energy in its various reports filed from time-to-time with the SEC that attempt to advise interested parties of the risks and uncertainties that may affect Clean Energy's business and an investment in its securities. DATASOURCE: Clean Energy Combustion Systems Inc. CONTACT: visit Clean Energy's Website at http://www.clean-energy.com/ or contact: Clean Energy Combustion Systems Inc., Telephone: (604) 681-9337, Facsimile: (604) 681-9354, Email:

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