The following is a portion of a recent press release describing a new project development initiative that has attracted a lot of high level attention and is quickly expanding nationally and internationally. The main feature of these projects is that they use gas turbines as cogenerators in applications where electricity, heat or steam are used to solve an environmental or process need.

The principals of Powercell On-Site Energy inform me that since this press release, they’ve raised $3 million and are moving forward rapidly to establish additional alliances with other companies in other regions of the country, and to proceed with the first of several major projects.

There are ample opportunities for investment and participation in a variety of ways. Contact J.R. Forbes, Powercell On-Site Energy Systems, Modesto CA, phone/fax 209-5458858

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Energy Company Alliance Targets Distributed Power
MONTEREY, Calif.
–Sept. 17, 1998–

Five energy industry companies today announced the formation of “The Monterey Bay Alliance” to jointly offer a “total solution” package of cost- effective, environmentally-sound products and services that meet the power needs of customers in a wide range of industries.

The alliance is already pursuing several projects and has identified a number of other strong opportunities.

The Companies forming the Alliance are Catalytica Combustion Systems, Inc., Mountain View, CA; Enron Energy Services, Inc., Houston, TX; Harding Lawson Associates Inc., Novato, CA; POWERCELL On-site Energy Systems Inc., Modesto, CA.; and Pratt & Whitney Canada, Longueuil, Canada.

Focused on distributed generation, the Alliance solutions will feature Pratt & Whitney Canada industrial gas turbines, linked to one or more process systems, and Catalytica’s XONON(TM) air emission-control technology. “The Alliance will be able to provide innovative, low emissions energy solutions to end-users in the light manufacturing, commercial, and institutional sectors,” said Thomas E. White, Vice Chairman of Enron Energy Services, Inc., an Alliance company. “There is a clear need for distributed power systems that provide multiple energy products, incorporating breakthrough emission controls, at a competitive total cost.”

Applications may include wastewater treatment plants, food processing facilities, desalinization installations, new commercial and industrial land developments, hospitals, cold storage warehousing, office buildings, and educational institutions. For example, a power user might recognize the need for a more reliable supply of electric power, but see significant economic and environmental challenges to acquiring an on-site power generation capability. The Alliance plans to solve these problems by using advanced gas turbines in cogeneration or trigeneration cycles to significantly reduce total energy costs, while applying Catalytica’s XONON(TM) combustion technology to limit emissions of NOx, a primary air pollutant, to less than 3 parts per million. The Alliance can tailor its services to customer needs, ranging from supplying a basic cogen set, to a total energy system financed, constructed, owned, operated, and maintained by Alliance companies.

POWERCELL will serve as the prime developer for the Alliance, and Harding Lawson will provide system design, engineering and construction services. Pratt & Whitney Canada will supply the gas turbines. Catalytica will supply its XONON(TM) system for ultra-low NOx air emissions. Enron Energy Services Inc. will supply the natural gas for the gas turbines, sell and distribute any excess electricity and make financing available to selected projects.
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