Energy-Arizona^1.4

Gilbert, AZ - Diversified Energy Corporation announced today that it has secured an exclusive worldwide license to an innovative gasification cooling technology developed by Microbeam Technologies, Inc (MTI) through work sponsored by a National Science Foundation grant. The technology provides an approach for both cooling and recovery of high-value trace metals from the syngas output of coal gasifiers. Incorporation of this technology will provide increased system reliability and new revenue sources for gasification systems.

Gasification is emerging as the preferred technology for converting coal into a variety of energy products (e.g., electricity, transportation fuels, chemicals, synthetic natural gas, and hydrogen). Gasification offers superior environmental performance and system efficiencies when compared to traditional approaches like coal combustion. However, widespread use of gasification has been hampered by high capital costs and uncertain system reliability. These issues are partly due to the inorganic impurities in the fuel forming fouling deposits in the syngas coolers (used to cool the exiting gases). This fouling can cause unplanned system outages, increased maintenance, and can require expensive chemicals to clean the coolers, among other challenges. In addition, current syngas cooling technologies present little opportunity to recover the trace metals in the deposits, which can have high value in the metals marketplace.

Using advanced heat exchangers with special alloys, the patent-pending syngas cooler developed by MTI selectively cools the syngas within specific temperature regions, while concentrating metals for recovery. By controlling the temperature cycling of heat exchange surfaces, deposits can easily be removed on-line without shutting down the entire gasification system for cleaning and maintenance. This enhances system performance and reduces unplanned outages. In addition, the recovered metals can be sold to improve the gasification project economics. The technology has been successfully demonstrated at pilot-scale through grants from the National Science Foundation. Under this license, Diversified Energy® will work with MTI to provide systems engineering and commercialization expertise to introduce the product to both existing and new gasification customers.

About Diversified Energy Corporation:

Headquartered in Gilbert, Arizona (a suburb of Phoenix), Diversified Energy Corporation (www.diversified-energy.com) is a privately held alternative and renewable energy company focused on maturing innovative technologies, developing commercial energy projects, and providing engineering services support to project developers. Principal areas of expertise include biofuels, gasification, and algae production.

About Microbeam Technologies, Inc:

Microbeam Technologies Incorporated (MTI), www.microbeam.com, is a leader in advanced fuel quality analysis and determining the impacts of fuel on power system performance. MTI serves clients in the coal-fired industry and other industries by performing service analysis that will diagnose, predict, and prevent costly system failures. Since 1992, MTI has performed more than 900 commercial projects providing advanced analysis to the power industry, boiler manufacturers, coal companies, researchers, and others.

MTI's primary area of expertise lies in the use of scanning electron microscopy (SEM) techniques to determine mechanisms of formation and to predict ash-related problems in coalutilization systems. Using computer-controlled scanning electron microscopy (CCSEM), MTI provides quantitative information and a more accurate means of determining and predicting the effects of ash on combustion and environmental system performance. Analytical results are presented in a detailed yet straightforward report, which allows clients to easily understand their system problems and to take steps toward more efficient operation.