Mr. Lynn Mueller reports

SHARC ENERGY'S INNOVATIVE THERMAL ENERGY SOLUTIONS IN SPOTLIGHT DURING GOVERNOR INSLEE'S VISIT

Governor Jay Inslee recently visited Coastline Equipment Inc., a key partner and supporter of Sharc International Systems Inc., at Coastline's Bellingham, Wash., operation. The visit underscores Sharc's growing market presence and the growing recognition of its pioneering work in waste water energy transfer (WET).

Governor Inslee, accompanied by a distinguished group of attendees, including Bellingham Mayor Seth Fleetwood, State Senator Sharon Shewmake, representatives from United States Senator Maria Cantwell's Office, and Clean Tech Alliance president and chief executive officer Mel Clark, toured Coastline Equipment's facilities. The tour highlighted the production of the Piranha WET system, a groundbreaking product developed by Sharc and being produced by Coastline in Washington State.

During the visit, Governor Inslee gained insights into the potential of waste water energy transfer and Sharc's unique ability to create low-carbon, energy-efficient and energy-resilient thermal energy networks (TENs) and thermal energy storage (TES) systems from a previously unrecognized renewable energy resource -- waste water.

Currently, about 40 per cent of a building's energy is flushed down the drain and into the sewers. Sharc's systems leverage previously untapped renewable thermal energy located within the sewer and waste water infrastructure, aligning perfectly with the state's aggressive clean energy policies and the Inflation Reduction Act's rebate eligibility.

Under Governor Inslee's leadership, Washington State has emerged as one of the most pro-active regions in North America in terms of climate and clean energy policy. The state's Clean Energy Transformation Act (CETA) sets ambitious milestones for a 100-per-cent clean electricity supply, and the Climate Commitment Act (CCA) aims to significantly reduce greenhouse gas emissions. Furthermore, the Washington State Building Code, effective July 1, 2023, is the first in the United States to require all new residential buildings over three storeys and all commercial buildings to use all-electric space heating and a minimum of 50 per cent electric hot water heating.

Sharc's innovative solutions align seamlessly with these policies, offering a sustainable path to transition off fossil fuels, promote electrification, create jobs and invest in aging infrastructure.

Governor Inslee was also briefed on the King County waste water heat recovery pilot project, a pioneering initiative that allows private parties to utilize the thermal energy in publicly owned waste water infrastructure. This project, in conjunction with Sharc's technology, could potentially support the decarbonization of all of Seattle's hot water and heating needs, while also providing freshwater saving and electrically efficient cooling.

Sharc extends its gratitude to Governor Inslee and all attendees for their interest and engagement. This visit marks a significant step in acknowledging waste water as a renewable resource, a critical component of climate action policy that can help unlock key governmental goals.

About Sharc International Systems Inc.

Sharc International Systems is a world leader in energy transfer from the waste water people send down the drain every day. Sharc's systems recycle thermal energy from waste water, generating one of the most energy-efficient and economical systems for heating, cooling and hot water production for commercial, residential and industrial buildings.

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