SOURCE: W2 Energy Inc.

November 12, 2008 07:07 ET

W2 Energy Inc. to Build Modified Rotary Engine to Run on Steam

TORONTO--(Marketwire - November 12, 2008) - W2 Energy Inc. (PINKSHEETS: WTWO), a developer of green energy, is pleased to announce it will build a commercial unit of its rotary hydrogen engine to run on steam. The engine based on US patent number 5,720,251 is being modified to run on low pressure steam recovered from W2 Energy's biomass to liquid fuel plants. The company will also couple the engine to various generators to build a low cost solution to waste heat recovery applications.

"We have developed a unique set of biomass-to-energy technologies. But one of the missing pieces has been efficient production of electricity," says Mike McLaren, CEO of W2 Energy. "Most of the small steam turbines convert approximately 30% of the heat energy into electricity. We thought we could do better. We anticipate 80-90 percent conversion efficiencies with this new turbine."

W2 Energy has developed a biomass-to-energy plant which converts 4 tons per day of tires, municipal solid waste, plastics or coal into a minimum of 420 gallons per day of a blend of liquid hydrocarbons, including ultra low sulphur diesel, gasoline, naptha and industrial waxes.

The first model of W2 Energy's high efficiency steam turbine will be used to power the 4 ton / day plant and to provide electricity to be sold back to the grid, from these 4 ton / day plants. The steam turbine which will mate to the 4 ton / day unit will generate 500 Kw continuous.

"We are not first and foremost a turbine manufacturer. But necessity being the mother of invention, we are developing this new kind of steam turbine so that we can make the best quality biomass-to-energy plant," says Mike McLaren. "In the end, we may be developing a whole new business sector for W2 Energy. That would be fine."

W2 Energy will also be building biomass-to-energy plants in larger sizes, up to 1500 tons per day, and will be developing this ultra-efficient steam turbine design for all of their biomass-to-energy plants.

"We are in the green energy business, and whether we are increasing efficiencies in the biomass reactor, in the gas-to-liquid reactor, or in the steam turbine, we are still fulfilling our mission of producing the cleanest, most efficiently produced energy in the world," says Mike McLaren. "That's what gets us excited."

About W2 Energy Inc.

W2 Energy Inc. is a growing, publicly traded company that develops renewable energy technologies and applies it to new generation power systems. Specifically, W2 Energy Inc.'s plasma assisted biomass to energy plants utilize state of the art technologies to produce green energy both fuel (sulfur free diesel) and electricity at the most efficient cost in capital investment and production per/barrel, per/Megawatt.

Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, statements are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in the future periods to differ materially from forecasted projections. These risks and uncertainties include, among other things, energy market volatility, product demand, market competition, and risk inherent to the company's research and development operations.