Catalytica Energy Systems Ships First Commercial Units

    MOUNTAIN VIEW, Calif.--July 30, 2001--Catalytica Energy Systems, Inc. today announced that it has shipped its first commercial Xonon modules to Kawasaki Motors Corp., U.S.A. for incorporation into three M1A-13X gas turbines.
    The 1.4 megawatt (MW) Kawasaki gas turbines equipped with the Xonon(TM) Cool Combustion system were ordered by Enron Energy Services Operations, Inc., and will be installed at a U.S. government healthcare facility in Jamaica Plain, Mass. before the end of the year. Upon entering commercial service, the three turbines will satisfy the co-generation power needs of the medical center. As an integral part of the combustion system, Xonon will enable these turbines to produce clean electric power with ultra-low levels of nitrogen oxides (NOx).
    "Commercializing our Xonon Cool Combustion system has been a top priority for us this year," stated Craig Kitchen, president and CEO of Catalytica Energy Systems. "This first commercial shipment marks one of our most important milestones to date."
    Kitchen continued, "The operation of these turbines in a populated urban area of Massachusetts, one of the most stringently regulated areas in the country for emissions and air quality, will be an excellent platform for the commercial launch of our product. This installation represents what we believe is a growing demand for distributed generation, or power at the point of use. Our Xonon system provides the enabling technology for gas turbines to meet the ultra-low emissions requirements in densely populated areas, and to be sited near the load where power is needed most without adverse environmental impact."
    Xonon Cool Combustion offers significant advantages over competing emissions control systems that clean up the pollution downstream after it has formed, and in some cases use toxic and hazardous reagents such as ammonia to achieve ultra-low emissions levels. Xonon prevents the formation of NOx at the source, in the combustion chamber, and achieves NOx emissions of less than 2.5 parts per million without any incremental health or safety risks. To the end-user, Xonon delivers a more cost-effective and less burdensome approach to achieving ultra-low emissions in gas turbine power generation.
    Catalytica Energy Systems designs and develops advanced products for more effective energy production. Its proprietary technologies include the use of catalysts to create solutions to ease the environmental impact of power generation. The company's first product, Xonon Cool Combustion, is a breakthrough combustion technology that achieves ultra-low emissions levels for gas turbine power production. Xonon prevents the formation of pollution, particularly nitrogen oxides (NOx), a primary contributor to smog, through a proprietary catalytic combustion process. Additional technology development efforts include work on fuel processing for fuel cells, as well as adaptation of Xonon technology to micro-turbines, hybrid gas turbine fuel cells, and diesel applications. Find Catalytica Energy Systems on the Worldwide Web at www.CatalyticaEnergy.com.