Mr. Slawek Smulewicz reports

POLISH UTILITY COLLABORATES WITH MICROCOAL TO UPGRADE THEIR POWER PLANTS

A joint committee has been established between Mircocoal Technologies Inc.'s wholly owned subsidiary, Mircocoal International Inc. (MCII), and a major European Union coal-fired utility. The purpose of this special committee is to prepare and evaluate a comprehensive proposal for the implementation of a Mircocoal clean coal upgrading facility for its coal-fired power plants in Poland. The parties are developing a mutually agreed upon schedule of events and foresee delivery of a bulk shipment of Polish coal in October for testing at its facility in Denver, Colo.

While production and use of coal plummets in America, in Europe "we have some kind of golden age of coal," says Anne-Sophie Corbeau of the International Energy Agency. The amount of electricity generated from coal is rising at annualised rates of as much as 50 per cent in some European countries. Since coal is by far the most polluting source of electricity, with more greenhouse gas produced per kilowatt-hour than any other fossil fuel, this is contradictory to European environmental aspirations. Burning low-grade coal has historically been a cheaper means of producing energy but it provides an enormous challenge for any government attempting to maintain economic growth and comply with the highly restrictive EU gas emission targets. By utilizing the company's proprietary microwave coal drying technology a utility can benefit both through increased factory efficiencies and corresponding net environmental improvements. For example, various sources, including DOE's National Energy Technology Laboratory (NETL), the American Coal Council (ACC (1)), EPRI (2) and others, state that a 2-per-cent reduction in moisture will reduce CO2 emissions by 1 per cent. Further, a substantial reduction in sulphur and mercury emission can be obtained by removing these contaminants using the Mircocoal technology.

Slawek Smulewicz, chief executive officer and director of the company, states: "Our collaboration with a major utility in the EU is a validation of the Mircocoal technology as part of a global energy solution that improves the thermal output of coal and reduces the pollution it generates. We are delighted with our new partnership in Poland for Mircocoal technology to optimize the performance of their coal plants. Poland is one of the largest consumers of low-rank coal. We are excited to see the global commercial roll-out for this environmentally important and cost-effective technology."

1. Precombustion clean coal, October, 2008;
2. Coal Creek prototype fluidized bed coal dryer, February, 2007.

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