Energy Quest to build clean coal plants in India

MUMBAI, INDIA - Energy Quest, Inc., an emerging leader in the development and production of hydrogen-enriched alternative fuels and alternative power generation in an environmentally responsible manner, announced that it has received a Letter of Intent from Vimala Enterprise of Mumbai, India for the construction of two electrical power generation plants in India.

One of the plants is a 500MW clean coal power project (coal gasification) 1st phase and a second 700 MW 2nd phase for a total of 1200 MW for the two plants. Energy Quest will be providing proven gasification technologies, procurement, commissioning and management of the project.

Energy Quest, Inc. and their representative in India have been in negotiations with Vimala Enterprise of Mumbai, India along with their project developers to establish clean coal power projects in India. The agreement remains subject to mutual acceptance.

Vimala Enterprise has established all infrastructure including, financing, land, water, coal linkage and related government permission for these new projects. Both plants are anticipated to be coal fired power plants constructed with Energy Quest's clean coal gasification technologies to reduce the effects of global warming.

Mr. Wilf Ouellette, President and CEO of Energy Quest, Inc. stated, "We are pleased to have solidified the Letter of Intent for this substantial project. The clean coal emulsion and gasification technologies for power generation would save 30% over regular coal consumption and also produces distilled water as a byproduct from the process.

"The project cost for phase one is US$450 million dollars and funded by the end user. Energy Quest will be providing the cost of the 700 MW facilities along with the required agreements and schedules. Upon signing of a definitive agreement and EPC contract, we anticipate commencing the project as soon as all engineering milestones are completed."


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