Ammonia recovery system to help improve overall ecology of Jamaica Bay

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• New York City will implement ThermoEnergy's CASTion Ammonia Recovery Process to reduce nitrogen discharges that depletes oxygen levels in bay and its ability to support aquatic life

WORCESTER, MA, June 30, 2010 -- ThermoEnergy Corporation has announced that it has entered into a $27.1 million contract with the City of New York, to deploy a state-of-the-art ammonia recovery system at the City's 26th Ward Wastewater Treatment Plant situated on Jamaica Bay. Work on the project began this week. Once in full operation, the company's CASTion Ammonia Recovery Process (ARP) will prevent approximately 2.4 million pounds of ammonia from entering Jamaica Bay each year, helping the City to achieve its goal of improving the health of Jamaica Bay as outlined under Mayor Bloomberg's Jamaica Bay Watershed Protection Plan.

Ammonia is a major source of excess nitrogen in a number of U.S. waterways. Excess nitrogen creates algae blooms that rob oxygen levels in water once the algae dies and decays. The CASTion ARP process will be used to treat the 26th Ward wastewater treatment plant's ammonia-laden, internal recycle stream called "Centrate." When operational, the ARP facility will treat 1,200,000 gallons of water per day.

"Preserving Jamaica Bay is a top priority for the Bloomberg Administration, and CASTion ARP is cutting edge technology that will dramatically reduce the nitrogen content of the wastewater that New Yorkers produce every day," said Environmental Protection Commissioner Cas Holloway. "This past year, the City committed to reduce nitrogen discharges into Jamaica Bay by at least 50% through $200 million of investments in nitrogen-control technologies over the next decade. While nitrogen poses no risk to humans, it can reduce the Bay's dissolved oxygen content, which fish and other aquatic life need to thrive. DEP has always been a leader in the development of wastewater technology, and we expect that CASTion ARP -- a new non-biological process that captures ammonia -- will contribute significantly to the Bay's long-term ecological restoration."

"We are extremely pleased that the City of New York has selected ThermoEnergy for this important project, and we are confident that we will meet their high expectations for our company and technology," said Cary Bullock, Chief Executive Officer at ThermoEnergy Corporation. "We look forward to working with the Department of Environmental Protection (DEP) to pioneer our advanced ammonia treatment technology, not just for use by New York City, but also at other municipalities within the U.S. and abroad who are seeking cost-effective, environmentally responsible ways of dealing with nitrogen/ammonia regulations."

About ThermoEnergy Corporation
Founded in 1988, ThermoEnergy, with its subsidiary CASTion Corporation, is a diversified technologies company engaged in the worldwide commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com, or www.castion.com.

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