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Ener-Core and Siemens' Dresser-Rand announces grid sync with 3.5 MW CHP plant

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Ener-Core, Inc. (OTCQB: ENCR), a developer and licensor of innovative gas conversion technologies for global commercial and industrial facilities, has announced that its first two 1.75 MW Power Oxidizers integrated with the Dresser-Rand (part of Siemens Power and Gas Division) business' KG2-3G gas turbines have achieved electrical synchronization with the power grid.

The systems are now producing electricity and steam at the Pacific Ethanol, Inc. (NASDAQ: PEIX) bio-refinery in Stockton, California. The successful operation and grid synchronization represents the last significant technical milestone before full production of the Dresser-Rand business' KG2-3G Power Oxidizer units. Pacific Ethanol expects that the systems should enable the Stockton bio-refinery to reduce its energy purchases by an estimated $1 million per quarter.
Alain Castro of Ener-Core

Ener-Core Power Oxidizers are designed to replace the traditional gas-fired combustion chamber within Combined Heat and Power (CHP) gas turbines. The resulting integrated CHP gas turbine solution enables industrial sites to convert their low-quality waste gases directly into useful clean power and heat and steam, which allows the Dresser-Rand business to provide industrial clients with a first-of-its-kind solution that can substantially reduce their purchases of energy from the grid while also reducing carbon and nitrogen oxide (NOx) emissions.

The Dresser-Rand business and Ener-Core engineering teams have worked collaboratively since the beginning of 2015 to integrate the Ener-Core Power Oxidizer into the Dresser-Rand KG2 gas turbine; the scheduled final commissioning of the first two systems at Pacific Ethanol's Stockton bio-refinery represents a new chapter in the Ener-Core business.

Christian Lupp, Vice President of Commercialization of New Technologies at the Dresser-Rand business, said: "With this grid synchronization now achieved, the Dresser-Rand business and Ener-Core engineering teams are nearing completion of a remarkable and highly anticipated integration project. With this milestone, we look forward to the commercial deployment of this innovative and strategically valuable product line, and also to potentially expanding the scope of our existing license in the future."

Alain Castro, CEO of Ener-Core (above right), commented: "It has been a long three-year project, but we now have a technologically approved and integrated 1.75 MW PowerStation that is fully available for commercial deployment under the Dresser-Rand business' manufacturing umbrella. I have been inspired by the relentless dedication of our engineering team, and would like to thank them as well as the engineers and project team members from the Dresser-Rand business and Pacific Ethanol. Without the persistence and hard work of this collaborative team, we could not have reached this important commercial milestone. We look forward to full commercialization in 2018 for the KG2-3G Power Oxidizer units."

Neil Koehler, President and CEO of Pacific Ethanol, stated, "The installation of the Power Oxidizer at our Stockton plant demonstrates our commitment to reducing costs, reducing carbon and NOx emissions, and improving profitability throughout our nine facilities. By using waste gases to deliver usable, clean base-load electricity and steam production, we expect the cogeneration system will reduce our energy costs by an estimated $4 million per year."

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