Thermal Energy Signs Letter of Intent for DRY-REX(TM) Biomass Drying System with Eastern Canada Pulp and Paper Mill

    Study commences to confirm economic and environmental benefits of low
    temperature dryer for converting waste into high quality biofuel to
    offset fossil fuel use

    OTTAWA, Sept. 18 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V:
TMG) ( is pleased to announce it has signed a Letter of
Intent with an Eastern Canada pulp and paper mill for the design and
installation of a DRY-REX(TM) low temperature biomass drying system.
    Thermal Energy will immediately commence a detailed feasibility which is
expected to confirm the economic and environmental benefits of using the
DRY-REX(TM) system to dry the mill's biomass waste stream including paper
sludge for use as a biofuel. The study will be conducted in the current
calendar year and upon acceptance by the mill, would lead to the
implementation of a DRY-REX(TM) system under the Thermal-AUD(TM) (Alternate
Utility Delivery) program through Thermal Energy's energy services subsidiary
ForEverGreen Energy Inc.
    "We look forward to providing the client with the results of our detailed
study which we believe will show significant capacity to reduce fossil fuels,
energy costs and landfill charges by converting the mill's waste stream into
very efficient biofuel," said Thermal Energy President and CEO Tim Angus.
"This in turn would provide substantial environmental benefits by reducing
landfill, greenhouse gases and other emissions."
    The Thermal-AUD(TM) offering through ForEverGreen provides customers with
a way to generate immediate energy savings and positive cash flow from
operations starting the first day of the agreement, all without any up-front
or large capital investments.
    "Thermal-AUD(TM) is generating tremendous interest within a number of
industrial sectors and was the catalyst for the detailed study on this
project," said Mr. Angus. "These industries recognize that through this
program, Thermal Energy provides them with an opportunity to meet or exceed
emission reduction targets by reducing their consumption of carbon based
fuels, while preserving capital for other projects on an accelerated timetable
unconstrained by capital budgeting."

    About Thermal Energy

    Thermal Energy International Inc. is an innovative technology company
providing custom energy and emission reduction, and bioenergy solutions.
Headquartered in Ottawa, Canada, TEI is a designer, design build developer,
fabricator, owner, operator and supplier of proprietary and patented energy
conservation, renewable energy and environmental technology solutions. Thermal
Energy is a fully accredited professional engineering firm, and offers
advanced process and applications engineering services. The Company is a proud
member of the Chicago Climate Exchange (CCX). FLU-ACE(TM), Dry-Rex(TM),
Thermal Energy International. GEM(R) is a trademark used under exclusive
license from Gardner Energy Management Ltd.

    About ForEverGreen

    ForEverGreen Energy Inc. ("ForEverGreen") is a wholly-owned subsidiary of
Thermal Energy International Inc. (TSX-V: TMG). ForEverGreen owns and operates
Thermal Energy assets to be used under the Thermal AUD(TM) (Alternate Utility
Delivery) green power program, which will let Thermal Energy's customers
benefit from energy savings without capital investments. ForEverGreen
administers the Thermal AUD(TM) program.

    For more information about Thermal Energy International Inc. (TSX-V:
TMG), visit our website at

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For further information:

For further information: Stuart McCarthy, Investor Relations and
Communications, (613) 723-6776 x 220,

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