Clean Energy Joint Venture receives concession to build and operate first 30 megawatt solid municipal waste and tire gasification pilot facility for Mexico OTC/BB: CECU VANCOUVER, Oct. 25 /PRNewswire-FirstCall/ -- Clean Energy Combustion Systems Inc. ("Clean Energy") (OTC BB: CECU) is pleased to announce that it has signed, with its Joint Venture partner, EnEco Industries Ltd., a Memorandum of Understanding with Sistema Metropolitano de Procesamiento de Desechos Soildos ("SIMEPRODESO"), granting the Joint Venture a concession to construct and operate a 30 megawatt solid municipal waste-to-energy facility for the City of Monterrey, Mexico, using EnEco's Controlled Oxidation Reaction Environment "CORE" gasification technology. Clean Energy estimates that it will cost approximately $70 million to construct the facility and to commence operations. Construction is proposed for 2005 and operations are scheduled to commence in 2006. Clean Energy and EnEco intend to secure an experienced third-party solid municipal waste operator to fund the project and to operate the initial plant as well as anticipated follow-up plants for SIMEPRODESO, and are currently under discussions with an established operator relative to this aspect of the project. The CORE technology is an environmentally-friendly gasification system which converts organic or carbon-based materials contained in solid municipal waste to 5% ash content. Since the gasification process uses relatively low heat levels, the glass, metals, aluminum, wires and other ferrous and non-ferrous metals and aggregates contained in the solid waste will not be gasified; instead, they will be easily recovered in their original form after the gasification process and sold to recycling markets. All material remaining after the gasification process is further processed to ensure all inert material is contaminant free. The resulting ash from the gasification of the organic materials is relatively benign since it is not contaminated with heavy metals. After this final processing step, ash together with glass and sand recovered in the gasification process may be used for asphalt and concrete building materials as well as land fill cover. The energy rich gases produced by the gasification process will be used to create electrical energy through a steam turbine circuit. Final plant discharges are lower and, in some cases significantly lower, than that presently allowed under United States and Canadian pollution standards. SIMEPRODESO is a private company owned by the State of Nuevo Leon, Mexico which provides all of the State's municipal solid waste management services. SIMEPREDESO currently processes approximately 5,000 tons per day of unsorted solid municipal waste for the Monterrey municipal area. Under the Memorandum of Understanding, for the next 20 years SIMEPRODESO will deliver 765 tons per day of unsorted solid municipal waste containing at least 10% wood waste, and 135 tons per day of car and truck tires, to the plant to be gasified and to create heat energy that can be converted into electrical energy, and will be obligated to purchase the electrical power generated at a fixed rate of US $0.06 per kW. Based upon the 30 MW output of the plant, this will result in approximately US $16 million in revenues per year. Under the Memorandum of Understanding, the Joint Venture will construct additional capacity on site, and additional 600 ton per day gasification facilities at outlying transit locations in Monterrey once the initial plant is operating. Under the Joint Venture, all profits from the operation, licensing or sale of the Monterrey plant will be split 50/50 between Clean Energy and EnEco. As part of the Joint Venture, Clean Energy will allow EnEco to use Clean Energy's unique high-efficiency valveless oscillating burner technology as a component part of the secondary oxidation process in the CORE gasification system under which the gases produced by the primary gasification process are burned and the resultant heat energy is made available to create steam energy for electricity production. Accordingly to Mr. R. Dirk Stinson, President of Clean Energy, "Over the past several months, Clean Energy and EnEco have meet with senior officials of the National Forest Commission of the federal government of Mexico (the Comison Nacional Forestal or "CONAFOR"), a department of the federal Ministry of Natural Resources (the Secretaria de Medio Ambiente y Recursos Naturales or "SEMARNAT"). While the meetings were originally held to discuss the disposition of forestry waste and the creation of electricity using our gasification technologies, they have since branched out to address more critical national issues facing Mexico relating to shortages of electricity capacity and the environmentally-sound disposition of solid municipal waste, wood waste and tires, with CONAFOR taking a leading role in identifying applications in Mexico on behalf of SEMARNAT and introducing the parties. Under our discussions with CONAFOR and SEMARNAT, the Joint Venture proposed the construction of four CORE gasification pilot plants to commence construction by 2005 and operation by 2006. The 30 MW plant for Monterrey is the first of these pilot plants. Through CONAFOR and SEMARNAT, the Joint Venture is currently in discussions with senior officials in another State of Mexico relative to the use of the CORE gasification system to address the municipal solid waste requirements for one of the largest cities in Mexico located in that State, as well as several other potential users and/or investors in the country. On behalf of itself and SEMARNAT, CONAFOR has provided in the Memorandum of Understanding its agreement to continue to provide assistance in making CORE gasification waste-to-energy viable in Monterrey and the rest of Mexico, as well as developing wood plantations for producing renewable energy using our gasification technologies with SIMEPRODESO and other private producers." Mr. Ross Dickenson, President of EnEco, added "The CORE gasification system is a proven environmentally-friendly municipal waste-to-energy technology that is ideal for growing countries like Mexico in need of electricity and looking for solutions to their municipal waste problems, including reductions in landfills. We believe the construction of numerous CORE facilities in Mexico, combined with the energy and operating efficiencies and reduced emissions resulting from the incorporation of Clean Energy's oscillating burner technology as the secondary combustion chamber in the CORE system, will provide the basis for the rapid selling of the CORE system internationally. EnEco and Clean Energy are already in discussions relating to joint proposals with respect to other countries." Background on Clean Energy and Oscillating Combustion: Clean Energy is a development-stage U.S. public company based in Vancouver, British Columbia, Canada. The company's principal oscillating combustion technology is a unique high-efficiency valveless combustor technology that operates on the principles of cyclical combustion, originally developed for aerospace propulsion. The company currently holds 6 patents in this area. This patented oscillating combustion technology is superior to the standard, steady-state combustion technology currently used in the heat transfer industry in terms of both energy efficiency and consequential fuel cost savings as well as significantly reduced NOx and other emission levels. The company's oscillating combustion technologies can be used in a wide variety of systems that burn gaseous and hydrocarbon-based fuels and waste matter to produce thermal energy for heat utilization applications and the onsite generation of electricity. The company will either design, manufacture, and market products incorporating its environmentally-friendly and fuel efficient technologies, such as its gasification system, or license or design, manufacture, and sell its products for incorporation into systems marketed by other companies. For further information visit Clean Energy's Website at http://www.clean-energy.com/ or contact: Clean Energy Combustion Systems Inc. Telephone: 604-681-9337 Facsimile 604-681-9354 Email: Forward-Looking Statements: Clean Energy's development plans and the prospective potential of its Joint Venture with EnEco as described in this news release constitute "forward-looking statements" within the meaning of the United States federal securities laws that involve risks and uncertainties. Actual results may vary substantially from expectations as a result of a variety of factors including, by way of example and not limitation, Clean Energy's financial requirements, current lack of capital and prospective inability of the Joint Venture to satisfactorily procure orders from the Mexican government, financing for the Joint Venture and changes in Clean Energy's business plan and corporate strategies; and the various risks and uncertainties disclosed by Clean Energy in its various reports filed from time-to-time with the SEC. Readers are urged to carefully review and consider the various disclosures made by Clean Energy in its various reports filed from time-to-time with the SEC that attempt to advise interested parties of the risks and uncertainties that may affect Clean Energy's business and an investment in its securities. DATASOURCE: Clean Energy Combustion Systems Inc. CONTACT: visit Clean Energy's Website at http://www.clean-energy.com/ or contact: Clean Energy Combustion Systems Inc., Telephone: (604) 681-9337, Facsimile (604) 681-9354, Email:

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