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Ener-Core to Complete Construction of Multi-Fuel Test Facility by June 2015

Ener-Core, Inc., the world’s only provider of Power Oxidation technology and equipment that generates clean power from low-quality and waste gases from a wide variety of industries, is completing construction of a Multi-Fuel Test Facility (MFTF) that it has developed and designed on its premises. The company has invested $1 million to develop the MFTF and its completion is expected by June 2015.

The MFTF will initially play a key part in completing Ener-Core’s pending sale to Dresser-Rand of two Ener-Core Power Oxidizers that will be coupled with the Dresser-Rand KG2-3GEF two-megawatt gas turbine generators for Pacific Ethanol’s Stockton, CA plant. As previously reported by Ener-Core, Dresser-Rand’s letter of intent stated the formal purchase order to Ener-Core is contingent upon a successful SSAT (Sub Scale Acceptance Test) as defined in the Commercial License Agreement and scheduled to be conducted in June 2015, after which time Dresser-Rand has agreed to issue the purchase order. The MFTF will be used by Ener-Core to demonstrate this critical test and secure the purchase order for the full-scale system at Pacific Ethanol.

Dr. Boris Maslov, Chief Technology Officer of Ener-Core, said, “The completion of the MFTF will not only be an important milestone in our project with Dresser-Rand and Pacific Ethanol; the test facility is a critical pillar of our overall commercial and technology strategy. Today, our team receives frequent inquiries from prospective customers with varying types of waste gases. Typically, we find that most of these companies are flaring (burning) their waste gases, but they are intrigued by Ener-Core’s ability to help them monetize these poor-quality gases by converting them to clean power. The MFTF will enable us to physically test each specific type of waste gas in a relatively fast and cost-effective manner, and thereby simplify and accelerate the due diligence efforts of these prospective customers prior to them making a purchasing decision.”

Alain Castro, Chief Executive Officer of Ener-Core, said, “In parallel, Ener-Core is also executing on its strategy to scale the Power Oxidizer technology up to larger-size power stations and partner with leading multinational power equipment companies to commercially deploy the larger-size systems. For these initiatives, the MFTF will substantially reduce the time and costs of the development cycle of these future (larger-size) products, as it will enable us to rapidly prove the capability of our technology to generate much higher-power outputs, without having to actually commit the significant capital that would otherwise be needed to build prototypes of the larger full-scale systems. So we see this facility as the cornerstone to accelerating our sales cycle on existing products, and also scaling up to larger products, by proving the technological capabilities to customers (and multinational license partners) before asking them to commit to large capital expenditures.”

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