Oct. 08, 2006 

Canadian Company Signs U.S. CO2 Management Contract

Saskatchewan-based HTC Purenergy today announced the signing of a Commercial Alliance and Services Agreement with Global Energy Inc. of Cincinnati, Ohio.

Global Energy is a leading environmental energy technology company with Gasification Technology expertise. Gasification Technology provides an environmentally superior and low cost method for producing power, gas, transportation fuel, and hydrogen. The Company has optimized technology and operating techniques and is able to produce synthetic gas at a cost well below market prices for pipeline gas. Having permitted and started construction on their Lima Energy IGCC project, Global Energy leads in the development of Integrated Gasification Combined Cycle (IGCC) facilities. The Company has 7 Projects representing 420 BCF of Synthetic Natural Gas (SNG), 12 Million scf/day of Hydrogen and 1400 MW of power in development, construction or operation in the US and UK. This total includes the output from the Wabash Gasification Facility, one of two operating IGCC sites in the US, which the Company has owned and operated since 2000 and with partner Wabash Valley Power Association since 2005.

Mr. R.A. Bailey, Chief Operating Officer of Global Energy, stated “We welcome the addition of state-of-the-art CO 2 Management, via this Commercial Alliance, which will serve to complete an all encompassing clean energy offering, complementing our IGCC Technology leadership position.”

“Global Energy has recognized HTC Purenergy’s leadership in technology development and aggregation in the field of CO 2 management,” said Lionel Kambeitz, Chairman and CEO of HTC Purenergy. “Our collaborative alliance with the International Test Centre for CO 2 at the University of Regina, and its experience in the Weyburn oil field has positioned HTC as a global leader.” The Agreement covers a two year period, and is valued at USD $2 million.

HTC Purenergy will provide CO 2 Enhanced Oil Recovery, CO 2 Sequestration and CO 2 Management Services that will include:

* development and engineering of Enhanced Oil Recovery (EOR) opportunities in areas near Global Energy facilities
* evaluation of underground formations for CO 2 storage integrity to establish potential to offset CO 2 emissions

HTC Purenergy is commercializing and deploying CO 2 capture and storage technologies for enhanced oil recovery and geological sequestration, with projects in Norway, United States, Canada, China, Australia and Saudi Arabia.

 

HTC Purenergy provides Carbon Management solutions to industry worldwide, from its head office in Regina, Saskatchewan. HTC is a public company, listed on the Toronto Stock Exchange Venture Exchange, trading as “HTC”. The latest corporate news is available on our website at www.htcenergy.com.

The TSX Venture Exchange Inc. does not take any responsibility for the adequacy or accuracy of the information contained in this news release.

For more information contact:

Jeff Allison,

HTC Purenergy

Telephone: (306) 352-6132

Fax: (306) 545-3262

E-mail: jallison@htcenergy.com

HTC Purenergy corporate developments can be followed on http://www.htcenergy.com/ and is traded under the symbol HTC