Mr. William Crossland reports

THERMAL ENERGY DEVELOPING WATER AND HEAT RECOVERY SOLUTION FOR MAJOR PETROCHEMICAL COMPANY

Thermal Energy International Inc. is expanding its presence in the petrochemical industry, having been selected to develop a water and heat recovery option for three proposed Canadian oil sand developments.

Thermal Energy has been appointed to engineer and design an innovative water recovery solution for a world-leading petrochemical company, including a cost and benefit analysis. The system would recover water from the boiler plant and cogeneration operations to provide required process water and to reduce capital costs.

Although water recovery has been a significant part of many of the company's projects in the past, this represents Thermal Energy's first paid contract to engineer and design a system with a focus on water recovery ahead of heat recovery. Preliminary project analysis demonstrated a viable case to include the company's Flu-Ace heat recovery system solution in the design of three Canadian oil sand sites currently under development. As a result, Thermal Energy has been engaged for a more detailed engineering phase.

"Oil sands operators are committed to continuously improving sustainability. Technologies which support this vision by delivering a reduction in emissions and minimizing water usage, while also providing a solid return on investment, are of great interest to the sector," commented William Crossland, chief executive officer of Thermal Energy.

"We've developed our Flu-Ace heat recovery system to condense water and recover waste heat from a variety of sources, including boiler, gas turbine, oven and dryer exhausts. To date, our focus has primarily been on the recovery of heat, driven by rising fuel costs and the need to improve site efficiency and lower carbon emissions. However, the same technology can be applied to reduce or eliminate the use of fresh city water or groundwater. This provides a cost-effective and sustainable solution for organizations looking to reduce their water usage. Such a solution makes it a viable option for not only the petrochemical sector, but also other industries with high water costs around the world."

The currently approved development stage is expected to be completed over the next few months. If engineering results meet the client's criteria and the Thermal Energy solution is incorporated in the coming projects, these water recovery systems are expected to be implemented over the next three to five years.

About Thermal Energy International Inc.

Thermal Energy is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors. The company saves its customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions.

Thermal Energy is also a fully accredited professional engineering firm, and, by providing a unique mix of proprietary products together with process, energy and environmental engineering expertise, Thermal Energy is able to deliver unique turnkey projects with significant financial and environmental benefits for its customers.

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