Envirostar announce Pre-Commissioning of Plant 16/

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    HOMEX - Sydney

    The Directors are pleased to announce the opening at the "pre-
    commissioning stage" of the Stapylton Green Power plant south of
    Brisbane on Friday 12 July 2002.

    EnviroStar is aiming to be in a position to deliver electricity into
    the grid for sale to Energy Australia by the end of the third quarter
    of this year, generating revenue for the Company. In addition, after
    the successful commissioning of the plant, EnviroStar expects to
    commence Stage 2 (20MW) on the Stapylton site.

    Photographs of the installation at the construction site are posted
    on the website http://www.envirostar.com.au.

    By this announcement we wish to present:

    1 An outline of the CEO's remarks at the pre-commissioning opening
    2 The green power plant technology - in summary


    "This Australian designed and assembled plant represents a milestone
    in the renewable energy industry for EnviroStar, for Queensland and
    for Australia.

    Stage 1 of this plant will convert green waste which is a disposal
    and environmental problem for local councils (& by extension the
    community) into a sustainable supply of electrical energy sufficient
    for 3,000 households, and without further detrimental affects on the
    environment. Stage 2 will support an additional 20,000 households.

    The Stapylton plant will operate for 20 to 30 years and require at
    full scale up to 110 contractors during construction and 40 direct
    long-term employees. It will provide for the employment of a large
    number of contractors in the supply of fuel and in maintenance and
    other areas of support.

    The plant represents the first step for EnviroStar in the development
    of its green power projects. It has taken 5 years to plan design and
    construct. The key component/technology is the fluidised bed
    combustion reactor and boiler which was originally developed more
    than 20 years ago and has been refined through many installations
    throughout the world.

    EnviroStar intends to be a leader in the renewable energy industry.
    Our vision is to build many of these green power plants throughout
    Australia extend into the Asia.

    Through Stage 1 at Stapylton, we will demonstrate the technology's
    efficiency and viability. We will demonstrate how to produce
    electrical energy without adverse environmental impact and we will
    optimize our fuel supplies by working with our suppliers and local
    councils in the best interests of the community.

    EnviroStar Energy is an Australian companies deploying both
    Australian and international technology. We will seek to manufacture
    our key components in Australia and to obtain our maintenance support
    and spare parts from Australian sources.

    The global environment is threatened by the wide exploitation of
    fossil fuels. Pro-active efforts are being made by Governments
    throughout the world to address this situation. These are illustrated
    by the mandatory 2% levels for renewable energy which have been
    imposed on the power companies. This represents in energy terms
    approx 2/3rds of a new Snowy Mountain Scheme or 100 of EnviroStar's
    20MW green energy plants. In some States of Australia these levels
    are be adjusted to 5%.

    Therefore, EnviroStar expects to have no difficulty selling its
    product into the current market. The expectation is that this market
    will mature and expand beyond these mandatory demands in the future,
    with increasing opportunities to market product internationally.

    EnviroStar's operations are based on commercial principals. The aim
    of the Company is to maximize profits to enhance shareholder wealth,
    whilst minimizing environmental impacts and maximizing the
    opportunity to secure emission reduction bonuses through Renewable
    Energy Credits and Carbon Credits and the like."


    The plant produces electricity by way of an "integrated combustion
    and gasification process" in a Fluidised Bed Combustion Reactor.

    The FBC process works by gasifying the fuel in a "low combustion"
    fluid bed [comprised of sand and limestone]. Fluid beds represent the
    most efficient technology for the conversion of waste to energy
    according to UCLA.

    The energy conversion (to electricity) steps are:

    1. The fluid bed is able to produce hot gas from the green waste at a
    "bed temperature" of 850degC

    2. The hot gas ignites which causes a "step up" in the temperature to
    1200degC which releases an enormous amount of energy

    3. The energy is transferred to a boiler containing water [which sits
    inside the pipes of the fluid bed combustion reactor] and in turn the
    reactor produces "super heated" steam with high pressure and

    4. The steam is used to drive a turbine which generates electricity

    5. The spent steam is then recycled to water via an air cooled

    Some interesting Statistics for the nominal 20MW base plant:

    * A conventional boiler will produce 1 tonnes of steam for every 10
    tonne of solid fuel

    * The FBC used by EnviroStar will produce 10 tonnes of steam for
    every 10 tonnes of fuel waste of fuel

    Key features of the technology:

    * The technology allows for multivariable fuels. For example, garden
    prunings, grass offcuts, potato peels, onion skins, etc

    * Because of the high operating temperature the plant produces very
    low green house gasses, and no toxic fumes or residues.

    * The waste product is fly ash (<10%) which can be used as a building
    material as it is non toxic and inert

    * The capital cost for the base 20 MW plant approximately $1.5M/MW
    which is comparable to a conventional thermal power station and which
    makes the EnviroStar green power solution very competitive when
    compared to other renewable energy projects.

    * The world wide patents for the process were established 20 years
    ago and the technology has been refined since then - therefore the
    technology is proven for a wide range of fuel types. There are many
    of this type of fluidised bed in operation throughout the world
    utilising a wide variety of fuels waste from green waste, sewerage
    sludge and coal tailings.

    * The technology is an Australian product which means that the
    benefits will flow back into the Australian community and economy


    * The fluidized bed combustion technology used by EnviroStar is
    provided under an exclusive license to the Company

    * The green power plant has a sustainable competitive advantage
    because the capital cost approximates that for conventional power

    * The Stapylton 5MW plant is a fully commercial operating plant with
    5 year PPA with an option to extend by a further 5 years with the
    largest electrical generating and distribution company in Australia
    (Energy Australia)

    * EnviroStar is currently progressing 4 projects at sites which are
    at various stages of development. The first are Stapylton Stages 1
    and 2, and Morwell. In addition the Company is progressing the
    permitting and approval process for Huonville in Tasmania and
    Sommersby in NSW.


    * EnviroStar's green power plant will make a contribution towards
    mitigating the "true" cost of pollution to the community represented
    by impact on health, climate changes, land which affects the current
    generation and future generations. The Australian Government has
    developed a penalty which will be imposed on the electrical retail
    companies unless they acquire minimum renewable energy levels.
    Therefore it is clearly recognized that the current and future
    environmental costs on the community cannot be sustained

    * Internationally - dozens of western countries are known to be
    vigorously pursuing a similar path and significant pressure is
    developing to either ratify the Kyoto Protocol or develop a similar
    broad based scheme

    * EnviroStar's plant does not use water to cool the system. A 5MW
    coal fired plant would consume 150 tonnes of water/hr and would
    produce 60,000 to 70,000 tonnes of green house gasses/annum (which
    would include NOX and SOX, CO and toxic ash)

    * EnviroStar will be selling its electrical energy into the Mandatory
    Government Legislation and qualifying for Carbon Credits and
    Renewable Energy Credits

    For further information, see our website
    (http://www.envirostar.com.au) or contact Malcolm Carson or his
    predecessor Mr James Kwok who remains as an executive director of the

    Telephone Number: (02) 9232 0788
    Facsimile Number: (02) 9232 0799
    Email address: [email protected]

    M Carson

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