HTC announces the building of a new demonstration plant featuring technology that reduces bio-fuels production costs.

Regina , Saskatchewan-HTC Purenergy (“HTC”) announced today that with funding assistance of $2.5 million from the Governments of Saskatchewan and Canada, it will build a demonstration plant to showcase its proprietary technology, which is expected to significantly reduce the costs of bio-diesel and ethanol production.

This commercial sized demonstration plant will be located at the University of Regina’s – Green House Gas Technology Centre which also houses HTC’s Technical Services Product Development Centre.

HTC plans to demonstrate in a full commercial scale production unit, technology it has been working on for the past four years that reduce the need for carbon fuels such as natural gas in the production of bio-diesel and ethanol.

The $3.6 million plant is expected to demonstrate two key cost reduction processes: using pre-distilled ethanol and a bio-diesel waste product – glycerol, to produce hydrogen that will be used as a replacement energy source or a saleable commodity

The project will begin immediately, with full construction and commissioning expected to be completed by December, 2008.

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