Compact Power Holdings PLC
06 August 2007


For Immediate Release                                             6 August 2007


   Joint Venture to construct new Biomass to Energy Plant in the West Country


Compact Power is pleased to announce that it has entered into an agreement with
A.J.Charlton & Sons Limited to establish Charlton Compact Power Limited as a
joint venture to build and operate a biomass to energy facility at the Charlton
Saw Mills at Buckland Down nr. Frome, Somerset. The facility will convert
woodchip from the sawmill and locally grown miscanthus supplied in collaboration
with Bical into heat and power which will be supplied to meet local demand.


The project will benefit from the new incentives proposed under the Government's
recent Energy White Paper which give double Renewable Obligation Certificates
(ROCs) to electrical output from pyrolysis and gasification technologies.


Nic Cooper, Chairman of Compact Power, says:

"We are very pleased to have formed this joint venture relationship with a
highly respected family company. The project is a model example of the type of
sustainable solution that we offer, providing heat and power for local use from
locally sourced biomass resources."


Peter Charlton of A.J.Charlton & Sons says:

"We are very impressed by the Compact Power technology which has operated in
commercial conditions for nearly 7 years, meeting the highest environmental
standards. We have been working on this project for some years in collaboration
with Bical and local farmers and we look forward to realising a project which
will be an important development for our core business and offer some
significant ongoing benefits to our community."


David Croxton of Bical says:

"BICAL are pleased to be working together with A. J. Charlton & Sons, Compact
Power and local farmers to supply Miscanthus fuel for this project. The energy
facility will be significant in the biomass to energy sector, in showing how
distributed combined heat and power facilities can contribute to the development
of the biomass supply industry in the UK."


Anna Halcro-Johnston of Regen South West comments:

"This is exactly the sort of project the region needs; an experienced south west
manufacturer providing an energy system, which will not only stimulate local
miscanthus production, but also divert waste wood from landfill. This
installation will demonstrate to the region the opportunities that decentralised
energy can provide."





                                     -ends-


Notes to editors

About Compact Power


Compact Power (LSE: CPO) a company listed on The London Stock Exchange (AIM) has
developed an innovative technology based on pyrolysis, gasification and high
temperature oxidation for the safe, economic and environmentally friendly
processing of a wide range of wastes and biomass with energy recovery. The
company operates a commercial plant at Avonmouth, Bristol.


For more information, visit www.compactpower.co.uk


About Bical

BICAL is the leader in the successful production and continued development of
Miscanthus, the multipurpose crop for energy and industry.

Miscanthus is a perennial grass, which satisfies the criteria for the ideal
energy crop it is both profitable and environmentally friendly, and suitable for
production across large areas of the EU. In the UK Miscanthus is recognised and
supported by DEFRA, significant areas of Miscanthus are required to supply
biomass into the renewable energy market. Established once, the crop yields for
over 10 years, without replanting. BICAL have developed efficient and profitable
systems for all aspects of crop production and onward processing


For more information, visit www.bical.net





Contacts


Compact Power
Nic Cooper - Chairman
Richard Hogg - Business Development Director
Tel: 0117 980 2900


Blue Oar Securities Plc
Mike Coe - Director
Tel: 0117 933 0020


Winningtons Financial PR
Paul Vann
Tel: 0117 920 0092








                      This information is provided by RNS
            The company news service from the London Stock Exchange

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