CALGARY, Alberta, Sept. 12, 2006 (PRIMEZONE) -- Clean Power Technologies (OTCBB:CPWE) is engaged in research and development to enhance the thermal efficiency and effectiveness of power generation for all forms of transport by hybridisation, from the light car, through the heavy truck to railway locomotives, is pleased to announce that a Memorandum of Understanding (MOU) has been reached with the international engineering company, Mitsui Babcock Energy Limited (www.mitsuibabcock.com) for the development of a Steam Accumulator and other related technologies for the implementation of a new hybrid technology.
The current world price of oil compels industry to consider very seriously the efficiency with which it uses this most convenient indigenous source of energy. Further, the anxiety society now feels about pollution of the environment, on both a global scale and at the parochial, local level, demands consideration of this aspect, also of energy generation. This applies for basic commercial and domestic usage and certainly for all transport. Clean Power Technologies Inc. is engaged in research and development to enhance the thermal efficiency and effectiveness of power generation for all forms of transport by hybridisation; from the light car through the heavy truck to railway locomotives.
"This is as a major endorsement of our technology; that a major international corporation like Mitsui Babcock would partner with a start-up company like Clean Power says volumes about our unique technology," said Abdul Mitha, CEO of Clean Power Technology, Inc. He continued to say, "The combination of Clean Power's exceptional intellectual property and the technical expertise which Mitsui Babcock can provide for implementation and development of this technology makes me very excited that Clean Power will be able to achieve rapid deployment and commercialization of this unique technology."
Innovation, determination and commercial aptitude have made Mitsui Babcock the leader in steam generating technologies for over a hundred years. Today they are the last remaining steam generation OEM (original equipment manufacturer) in the United Kingdom.
Over 40 years ago, Mitsui Babcock recognized the benefits of supercritical steam and created the technology to make it possible. Ever since, they have been providing highly efficient ways of generating steam from a variety of fuels and have applied this expertise to coal fired power generation in particular. The Company has developed a number of solutions for the coal fired power generation market that allow production of steam power reliably, safely and efficiently both for the user and the environment.
Mitsui Babcock is one of the world's leading suppliers of supercritical "clean coal" power plant technology, a technology that can improve power plant efficiency and reduce total emissions output by up to 20 percent, compared to existing power plant technology. It is this expertise, combined with Clean Power's intellectual property, which will be applied to enhance the thermal efficiency and effectiveness of power generation for all forms of transport by hybridisation, from the light car through the heavy truck to railway locomotives.
The agreement is conditional on the assumption that the development cost of the said accumulator technologies will be approximately US$400,000. Clean Power has agreed to give, and Mitsui Babcock has agreed to accept, 4,000,000 common stock of Clean Power Technologies Inc. in lieu of cash reimbursement for the said development costs. Within 18 months after the first petrol (gas)/steam vehicle is publicly and formally unveiled, Mitsui Babcock may, at its option, seek cash reimbursement of the development costs it has then incurred from Clean Power. Upon payment of such development costs by Clean Power, Mitsui Babcock will return 3,000,000 of CPWE common stock to CPTI.
Pursuant to the terms of the MOU, Mr. Richard Dennis, The Director of Research and Development for Mitsui Babcock Energy, will be appointed to the Board of Directors of CPTI. Mr. Dennis is a Chartered Engineer with 26 years track record in the Energy industry.
Under terms of the MOU, all technologies and intellectual properties which are developed by Mitsui Babcock in connection with Clean Power's petrol (gas)/steam and diesel/steam project and which are patentable and/or patented will belong to Clean Power Technologies Inc. Any intellectual property which is not patentable may be used by Mitsui Babcock without the prior approval or consent of Clean Power.
The key to the processes under investigation is the recovery, as far as is practicable and consistent with the laws of thermodynamics, of energy that is otherwise dissipated without conversion to useful work; examples are in the exhaust of all heat engines, and in the often critical cooling circuits of internal combustion engines. The key for the process, especially where local pollution has to be avoided, is the storage of clean energy, epitomised in much current practice by the electric battery with its inherent disadvantages of high weight and high cost coupled with low power and energy potential, especially as compared with thermodynamic processes. The heart of the technology under development by Clean Power is the CESAR process using Clean Energy Storage And Recovery. In this, the problems of the electric battery are avoided by using otherwise wasted heat to generate pressure in saturated water and then recovered as required by allowing vapour to form and expand through a suitable auxiliary engine.
With the progress made to date, it is anticipated that by the fall of 2007 the planned hybridized Mazda RX8 vehicle will be ready for road use. The first of the two planned donor vehicles was purchased in April. Once the fully functional developmental unit is complete, a second identical vehicle which has already been ordered will be similarly modified with the hybrid power train. This second vehicle will be used for promotional demonstrations and ready as early as the autumn of 2007.
"We are seeing increased consumer demand and acceptance for both alternative and hybrid technology," said Abdul Mitha, CEO of Clean Power Technologies Inc. He went on to say, "The current automotive rule of thumb is that one third of the energy from fuel produces useful work, one third is transferred to the cooling system and lost, and one third is lost through the exhaust pipe. Our technology can save up to one third of the waste heat and this translates into realistic fuel savings of up to 30-40% of current levels combined with cleaner emissions."
Clean Power has put together an impressive engineering team of 7 Professional Engineers which consist of a Mechanical Vehicle Integration Specialist, a Thermodynamic Specialist, an Engine Management Electronics Specialist, a Vehicle Systems Specialist, a Graphics Designer & Vehicle Builder, a Robotic Engineer and a Control System Specialist. These specialists make up the Clean Power development team and provide significant expertise to enhance the development and implementation of this unique hybrid fuel technology.
Clean Power Technologies Inc. operates out of their own development facility. The new, state-of-the-art facility is located in England and is completely outfitted with full computational support with Computer Aided Design 3D Modeling software, a fully automated Engine Test Dynamometer.
About Mitsui Babcock Energy Ltd.
Mitsui Babcock provides technologies and services to power, nuclear, petrochemical, pharmaceutical, oil and gas industries worldwide. With over 100 years of experience in thermal process and energy engineering, Mitsui Babcock is one of the worlds leading companies in its field. Mitsui Babcock's range of products includes utility and industrial boilers, emission control systems, asset maintenance and improvement services, nuclear clean up and decommissioning services and related technologies.
Globally headquartered in the UK, with its Americas head office in Atlanta, GA, Mitsui Babcock employs around 4,000 personnel (turnover in fiscal 2005/06 of over U.S. $800m). The company is a wholly owned subsidiary of one Japan's largest engineering companies, Mitsui Engineering & Shipbuilding Co Ltd., a company listed on the Tokyo stock exchange.
About Clean Power Technologies Inc.
Clean Power is engaged in research and development to enhance the thermal efficiency and effectiveness of power generation for all forms of transport by hybridisation, from the light car, through the heavy truck to railway locomotives. The heart of the technology under development by Clean Power is the CESAR process using Clean Energy Storage And Recovery. In this, the problems of the electric battery are avoided by using otherwise wasted heat to generate pressure in saturated water and then recovered as required by allowing vapour to form and expand through a suitable auxiliary engine. Coupling such a process with the most modern principles of electronic control of speed and power enables high efficiency joint operation of a combustion engine and the auxiliary power plant driven from the storage source where this is permitted and by the auxiliary alone for a limited duration. Clean Power plans to develop and commercialize this technology.
This press release is available on the Company's official online Investor Relations HUB at http://www.agoracom.com/IR/CleanPower for investor questions, answers and monitored commentary. Alternatively, investors are able to e-mail all questions and correspondence to CPWE@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.