LITTLE ROCK, Ark., June 19, 2002 -- ThermoEnergy Corp. has signed a Letter Of Intent with Shenzhen Fuhaoheng Investment Co., LTD, a Chinese corporation, to form a joint venture company to design, construct and operate wastewater treatment plants within the People's Republic of China using the company's patented and/or proprietary technologies, including the STORS renewable energy process and the Ammonia Recovery Process (ARP).
If the joint venture is formed its first project will be a commercial scale pilot plant located in Shenzhen, PRC. Assuming that the pilot project performs as is expected, the joint venture plans to pursue commercial, municipal and industrial wastewater treatment projects throughout China.
The Shenzhen facility will be the Company's first project outside the U.S., and will be based on the initial STORS plant located in Colton, CA; constructed with money provided by the U.S. EPA. STORS converts sewage sludge (biosolids) into a high energy fuel that can be cost-effectively turned into electricity for use onsite or exported to local markets. The ARP process removes and captures nitrogen, in the form of ammonia, converting it to ammonium sulfate; a commercial grade fertilizer used in agriculture around the world.
"This joint venture is a good example of how U. S. Government sponsored research and development programs can result in the export of U. S. technology around the world," says ThermoEnergy's CEO, Dennis C. Cossey.
"We are very pleased to have the opportunity to work with both the Chinese government and industry in what looks to be a very good opportunity for the Company," says Cossey. "We are confident that our clean water technologies can assist China in dealing with increased urban and environmental pressures brought on by the country's rapid growth over the past decade, especially the demand for clean water and economical recycling of their wastewater," says Cossey, who, along with Alex Fassbender, Executive Vice President of ThermoEnergy, recently returned from an extended trip to China. "There is significant commercial potential in China, which is now the world's 7th largest trading nation," says Fassbender.
Based on the success in Shenzhen, the new joint venture hopes to showcase the STORS and ARP technologies at the Summer Olympic Games to be held in Beijing in 2008.
ThermoEnergy 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.
