CO2 Solutions Partners with Neumann Systems for U.S. Pilot Demonstration of Carbon Capture Process

TSX-V: CST
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QUEBEC CITY AND COLORADO SPRINGS, CO, June 17, 2014 /CNW/ - CO₂ Solutions Inc. ("CO₂ Solutions" or "the Corporation") (TSX-V:CST), an innovator in the field of enzyme-enabled carbon capture technology, today announced that it has entered into a Collaboration Agreement with Colorado-based Neumann Systems Group, Inc. ("NSG" or "Neumann Systems"), an established emissions control solutions provider.

Under the terms of the agreement, CO₂ Solutions and NSG will demonstrate a combination of their two proprietary technologies at pilot scale in what is expected to be a significantly lower cost process for the capture of CO₂ from industrial effluent gases. Following this pilot, the companies anticipate co-marketing a combined solution for profitable application in enhanced oil recovery (EOR) and other existing and new CO₂ sequestration and reuse markets.

"This project with Neumann Systems has the potential to significantly accelerate the commercialization of both our companies' carbon capture technologies," said Evan Price, President and CEO of CO₂ Solutions. "Successful completion of the pilot will enable us to jointly pursue commercial opportunities both companies have identified.  This is also a timely start to a relationship between CO₂ Solutions and a U.S. partner given the June 2, 2014 landmark announcement by the Obama administration of carbon emissions regulations for the U.S. power sector."

The pilot combines CO₂ Solutions' enzyme-based technology with NSG's high mass transfer gas-liquid contactor technology, known as NeuStream^®. NSG's technology has a significantly smaller footprint than current technologies, with development to date demonstrating the potential to reduce CO₂ capture equipment capital costs by up to 50 per cent.

CO₂ Solutions has demonstrated that, using conventional CO₂ capture equipment, its enzyme-based solution can generate cost savings in excess of 30 per cent compared to conventional solvent-based processes. Additionally, the Corporation's solution enables the use of low-grade, nil-value heat from industrial sources, dramatically reducing process energy costs.

Initial large bench-scale testing of CO₂ Solutions' enzyme-enabled carbon capture solvent with NeuStream^® has already yielded very positive results. The upcoming pilot demonstration will capture approximately 10 tonnes per day of CO₂. The pilot is scheduled to run for one month, beginning in April 2015, at NSG's Colorado Springs facility.  CO₂ produced at the facility is expected to be suitable for enhanced oil recovery (EOR) and other commercial applications.

NSG has an on-going approximate US$9.5 million CO₂ capture system development project that is supported by a grant from the U.S. Department of Energy's National Energy Technology Laboratory with over US$1.4 million of NSG matching funding. Building on the NETL funded development project, CO₂ Solutions will contribute an additional approximate US$450,000 toward the April 2015 pilot for equipment modifications, operations changes and testing for the optimized use of the Corporation's enzyme-based solvent technology with NeuStream^®.

"We are looking forward to teaming up with CO₂ Solutions to demonstrate this potentially game-changing technology combination for carbon capture," said Dave Neumann, President and CEO of NSG.  "We anticipate realizing very significant synergies from the collaboration, making this an important opportunity to rapidly penetrate large existing markets for the profitable use of CO_2, as well as provide a viable solution for carbon emissions reduction for large emitters."

About CO₂ Solutions Inc.
CO₂ Solutions is an innovator in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution.  CO₂ Solutions' technology lowers the cost barrier to Carbon Capture, Sequestration and Utilization (CCSU), positioning it as a viable CO₂ mitigation tool, as well as enabling industry to derive profitable new products from these emissions.  CO₂ Solutions has built an extensive patent portfolio covering the use of carbonic anhydrase, or analogues thereof, for the efficient post-combustion capture of carbon dioxide with low‐energy aqueous solvents.  Further information can be found at www.co2solutions.com.

About Neumann Systems Group, Inc.
Neumann Systems Group, Inc. designs and builds emissions control systems for power plants and other industrial applications. NSG's principal product line, NeuStream^®, is a suite of emissions control systems that removes harmful pollutants from emissions sources like coal-fired power plants and industrial sources that contribute to ozone, acid rain, respiratory diseases and climate change. The NeuStream^® systems are based on an advanced gas-liquid contacting device invented, developed and manufactured by NSG.  Founded in 1997, NSG has been consistently profitable in its operations.  Further information can be found at www.neumannsystemsgroup.com.

CO₂ Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These statements relate to future events or CO₂ Solutions' future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operation described herein. CO₂ Solutions undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: CO2 Solutions Inc.

Investor Relations and Media Contact:

CO₂ Solutions:  
Thom Skinner
418-842-3456, ext. 223 
[email protected]
www.co2solutions.com

or

TMX Equicom
Adam Peeler
416-815-0700, ext. 225
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Marc Lakmaaker
[phone] ext. 248
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