December 6, 2005

Ergo Exergy begins work with Eskom Holdings Limited on the construction, commissioning and operation of the pilot εUCG plant at Majuba, South Africa

This project is currently in the final stages of the construction and commissioning of an εUCG pilot plant, which is scheduled to begin gas production in mid-2006. The pilot plant will provide for an initial generating capacity of approximately 6 MWe, which is sufficient to co-fire a single burner at Majuba power station. Pending the success of the pilot program, gas production will be scaled up to eventually provide 30% of the plant's fuel. At that stage, the εUCG facility will produce ca. 100PJ per annum to generate approximately 1,200 MWe of electricity.