NEW DURHAM, N.H., August 23, 2000—Powerspan Corp.'s pilot test unit has achieved unprecedented reductions in mercury and fine particulate matter. The patented technology—called Electro-Catalytic Oxidation^TM, or ECO—is installed at FirstEnergy's R. E. Burger Plant near Shadyside, Ohio. Independent test results from Air Compliance Testing, Inc. of Cleveland, Ohio, showed that mercury emissions were reduced to below minimum detectable levels and that total particulate emissions were reduced by 99.94%.

The ECO pilot unit treats two megawatts (MW) of flue-gas output from the 150-MW coal-fired unit burning high-sulfur eastern bituminous coal. During emissions tests conducted in April 2000 using EPA Method 29, the ECO pilot reduced mercury emissions to less than 1.2 micrograms per dry standard cubic meter, which was below minimum detectable limits. This represents a mercury reduction of greater than 81.6%. Fine particle emissions were reduced to 0.004 lbs/mmBtu (pounds per million Btu), with PM_2.5 emissions (ultra fine particles less than 2.5 microns in diameter) reduced by 96.6%.

"We developed ECO with a primary focus on reducing nitrogen oxide emissions to the lowest achievable levels. These new test results demonstrate that ECO has the potential to become a best available control technology for mercury and fine particulate matter as well," said Frank R. Alix, chairman and CEO of Powerspan Corp.

ECO provides the functionality of four separate air-quality control technologies in a single integrated system and produces valuable byproducts that become the feedstock for other industrial processes. With costs that are less than alternative technologies, ECO enables existing coal-fired generating plants to produce clean, competitively priced power.

"Power generating companies need innovative solutions to address increasingly stringent environmental regulations while still meeting the growing demand for electricity. ECO is a true multi-pollutant solution that should allow FirstEnergy to achieve a wide range of emission reductions with a single, cost effective installation," said FirstEnergy Vice President Guy Pipitone.

Powerspan and FirstEnergy now are engineering an $11.9 million commercial ECO installation to begin operation in Spring 2001 at FirstEnergy's Eastlake Generating Plant near Cleveland, Ohio. The project is being co-funded by a $3.5 million grant from the Ohio Coal Development Office within the Ohio Department of Development. Successful completion of this demonstration will lead to the deployment of full-scale, commercial ECO systems.

Nitrogen oxides, sulfur dioxide, and fine particulate matter have been identified by the U.S. Environmental Protection Agency (U.S. EPA) as collectively contributing to ozone formation, ozone transport, and regional haze. While nitrogen oxides and sulfur dioxide emissions from coal-fired power plants are regulated, a U.S. Supreme Court ruling expected in Spring 2001 may further reduce limits on fine particulate matter. While mercury emissions from coal-fired power plants currently are unregulated, the U.S. EPA is scheduled to make a regulatory determination on these emissions by December 2000.

Powerspan Corp. is engaged in the development and commercialization of innovative, proprietary energy technology for the global electric power industry. The Company is a pioneer in building cost effective and timely solutions for the existing power generating base. Company research and development efforts focus on unique applications of its proprietary electrotechnology to air emission control and water disinfection. Powerspan offers technology solutions to address the competitive needs of the new energy economy. More information on Powerspan is accessible at www.powerspancorp.com.

Powerspan Corp.
Contact: Stephanie Procopis, Director of Marketing
Phone: (603) 859-2500, ext. 20
Fax: (603) 859-2501
Email: sprocopis@powerspancorp.com
www.powerspancorp.com