March 1, 2005

Clean Energy Systems (CES) of Rancho Cordova, CA, and SEQ Nederland, B. V., a Dutch energy development company, have entered into an agreement for engineering services for a 50 MW zero-emissions power plant. Terms of the agreement, which were not disclosed, call for CES to prepare a preliminary Project Design Book and Plant Proposal for a nominal 50 MW zero-emission power plant, to be built in the Netherlands. The carbon dioxide captured from the plant will be used for enhanced hydrocarbon recovery purposes.

Under existing Dutch law, the proposed project would qualify for governmental support as a “climate neutral combustion technology”, as there will be no atmospheric emissions from the plant. In previous joint effort, CES, SEQ Nederland, B.V., and NIB Consult completed an assessment of feasibility of the proposed plant, and the current study will build on the earlier effort. The project participants are targeting an investment decision by the end of this year.