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Chinese JV rolls out clean energy units to biomass and coal sectors

June 2, 2007. London, UK – Nviro Cleantech plc, a leader in commercialising 'clean' technologies, today announces that its portfolio company, Vertus Technologies Limited ('Vertus'), has signed a joint venture agreement with a Chinese partner that includes a commitment to supply its first two Reductive Thermal Processing units (RTPs) to the region. One RTP will be used in the biomass market, improving energy efficiency and output for renewable power generation, while the other is destined for a coal fired power generator to reduce hazardous emissions, upgrade fuels supply and improve generating efficiency.

The commitment for the two Vertus RTPs is the first to arise from a joint venture agreement signed on 2 June 2007 between Vertus Technologies Limited and Balama Prima Engineering affiliate Newton Sino Group Limited, a leading Hong Kong based supplier of technology and engineering systems into China mainland markets, including fuel preparation systems for the power generation market. Specifically, the JV, operating under the name of Balama Nviro Limited, will roll out the Vertus technology for electricity generation from biomass waste - such as rice husks - and low grade, high contaminant coals in the energy-hungry Peoples' Republic of China.

Vertus Technologies will build the two RTP units for installation and commissioning by Balama Nviro Limited. It is anticipated that the RTPs will be operational from mid 2008 under 'install and operate' contracts that will provide Balama Nviro with recurring operational, maintenance and 'per-tonne' revenue over the long term, expected to be at least ten years.

The Peoples' Republic of China has both a rapidly growing urban population and a soaring demand for electricity that is outstripping the ability of current technologies and systems to supply in an environmentally sustainable manner. As a result the power generating market faces pressures from both ends, in terms of demand for new sustainable supply and also in terms of environmental legislation to clean up the industry's historical condition created by a rush to meet demand.

In particular, the Chinese "Renewable Energy Act" of 2006 represents a significant market driver that has already led to the approval or construction of over 100 biomass electric power generation plants on a scale of 25 Megawatts (MW) or above. Rice husks are the ideal feedstock for such plants, with over 900,000,000 tons of this free waste product produced each year in China alone.

Given, however, that coal currently fuels 85% of all China's power plants, Nviro Cleantech acknowledges the need for solutions, such as the Vertus RTP, that improve the environmental footprint of the ongoing 'old energy' infrastructure. For instance, the Chinese Government's 11th five year plan, which ends in 2010, calls for a 20% reduction in pollution from coal-fired power stations.

Chris Every, Chief Executive Officer of Nviro Cleantech, said: "We are delighted to have signed this significant JV with the Newton Sino Group, whose deep involvement in both the rice waste supply chain and the Chinese National Grid's 20 biomass energy trials makes them the ideal partner. That said, Balama Nviro is realistic that a market as huge as China cannot convert to renewables overnight, so we will also continue to focus on further retro-fit installations that improve the efficiency and environmental performance of the region's coal-fired electricity infrastructure. Furthermore we expect to apply this 'best of both worlds' model to other rice-based agricultural economies of which there are more than 100 worldwide."

For further information, please contact:

Nviro Cleantech plc
Chris Every, Chief Executive Officer
Tel: +44 (0) 20 7451 2473
cevery@nvirocleantech.com

Media enquiries:

Abchurch
Henry Harrison-Topham / Justin Heath
Tel: +44 (0) 20 7398 7781
justin.heath@abchurch-group.com

Notes to Editors

Nviro Cleantech plc is a leader in commercialising "clean" technologies, such as renewable energy, waste recycling, emissions control and air quality monitoring, that benefit the global environment. The Company operates by acquiring a strong, balanced portfolio of near-to-market technologies that address large demand needs in a breadth of markets, and which are viable and cost effective.

The Company operates through its wholly owned subsidiaries: Nviro Cleantech Limited; Microrelease Limited; Laseair Limited; Stillclear Environmental Limited; Nviro Cleantech Limited (Cayman Islands); Vertus Technologies Limited (Cayman Islands); Vertus Technologies US LLC. (Nevada); and 65% owned Organotect, Inc. In addition, Nviro Cleantech Inc, a US subsidiary, provides certain management services to the Company.

Together, the Company's subsidiaries are developing a portfolio currently comprising five Clean Technologies. These include: Vertus, the Company's lead technology designed to substantially cleanse low quality coal and biomass to produce high-grade fuel with properties similar to anthracite; MicroRelease, its secondary technology designed to recycle medium density fibre ("MDF") and particle board into a high quality reusable wood fibre; and three follow-on technologies, Carbon Co-burner, Organotect lab-on-a-chip, and Laseair.

Nviro Cleantech focuses on solutions that can be bought to market quickly, and with maximised financial potential, using proven technologies and management teams. It systematically targets environmental innovations that do not require radical shifts in consumer behaviour nor large capital investments to adopt.

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