6th September 2007

Hydrogen Engine Center, a designer, manufacturer and distributor of alternative-fueled internal combustion engines and distributed power generation equipment, today announced that it has entered into a memorandum of understanding with New Delhi-based Belliss India Limited to sell, deploy, and service its engines and distributed generation equipment in India.

“We believe our new relationship with Belliss offers HEC the opportunity to establish broader sales penetration of carbonless energy products in India while allowing Belliss to expand its product and service scope. HEC’s products are complementary to Belliss’ core competencies and products of which steam turbine power plants are their primary focus,” stated Don Vanderbrook, COO of HEC.

He continued, “We believe being able to work with a company like Belliss makes sound business sense for a number of reasons, including India’s emerging renewable energy market and the ability to deploy distributed generation to parts of the country that are not served by conventional power sources. Moreover, Belliss India has a wide array of client contacts throughout the subcontinent in a variety of industries and locations that offer us immense sales potential. Also, this memorandum of understanding has provisions under which we could form a joint venture when the right time comes.”

“We are looking forward to adding the HEC line of alternate energy power generation systems to our product line” states S.P. Jain, Managing Director for Belliss India Limited. “We believe there is solid market potential emerging for hydrogen fueled power systems that are typically grid independent.”

Currently, Belliss provides steam turbines for electricity generation throughout India, where demand for electricity is growing rapidly. Much of the steam reformer generation is fueled by coal, and India is seeking greener ways of generating power. By combining wind turbines with Hydrogen Engine Center’s product line, Belliss anticipates it will be able to offer a constant and stable power supply to virtually anywhere in India, even where the national grid doesn’t run.

The key is to use excess wind-generated electricity to produce hydrogen that can be used to produce electricity when the wind speeds are not generating sufficient power to meet demand. In this scenario hydrogen is produced by electrolyzing water, splitting the hydrogen from the oxygen. Because there is no carbon in the process, the operation is much cleaner than existing coal-fired generating plants.

Apart from designing and manufacturing new turbines, Belliss also offers its expertise in retrofitting Belliss turbines to suit changed steam conditions or increased output. Cogeneration schemes can also be devised by Belliss with proper Heat Balance/Utilization for achieving optimum system efficiency.