Thermal Energy Subsidiary Signs First Green Energy Supply Contract with Fraser Papers Inc. Thurso Mill



    ForEverGreen Energy inks agreement for up to $3.75M using
    Thermal AUD(TM) (Alternative Utility Delivery) Program

    OTTAWA, Aug. 27 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V:
TMG) (www.thermalenergy.com) is pleased to announce its new energy services
subsidiary ForEverGreen Energy Inc., has signed the first Thermal AUD(TM)
(Alternative Utility Delivery) "green" energy supply contract to provide
Fraser Papers Inc's (TSX: FPS) Thurso pulp mill with recovered waste heat.
    The green power purchase agreement is for six years. Based on the
estimated amount of waste heat to be recovered, the contract is worth up to
$3.75 million. Fraser Papers has an option to purchase the project assets at
the end of the term. ForEverGreen will contract with Thermal Energy for the
supply, installation and performance management of the FLU-ACE(TM) system at
the pulp mill in Thurso, Quebec. Implementation of the project will commence
immediately.
    "This initiative will improve our energy efficiency and strengthens our
environmental position at our pulp and paper facilities," said Jean Pierre
Benoit, General Manager at the Thurso pulp mill. "Fraser Papers' Thurso
operation is committed to improving its environmental performance in all
aspects of our operations."
    The Thermal AUD(TM) program is expected to reduce consumption of fossil
fuels used in the boilers at the Thurso mill by approximately 20%, or up to
10% of the mill's total fossil fuel use. It will also provide the following
environmental benefits:

    
    - Reducing greenhouse gases such as CO(2) by as much as 10,425 tons
      a year;

    - Reducing emissions of nitrogen oxides (NOx) by as much as 22.9 tons
      a year, and

    - Reducing emissions of sulphur dioxide (SO(2)) by as much as 131 tons
      a year.
    

    This is equivalent to permanently removing approximately 2,085 cars from
area roads.
    "This contract is a validation of an exciting new business model which
has received a lot of interest from various industries since we introduced it
to the market earlier this year," said ForEverGreen President and CEO
Tim Angus. "We knew customers, especially the pulp and paper sector, were
looking for ways to beat high energy costs and generate immediate savings
without investing large amounts of capital."
    The Thermal-AUD(TM) offering through ForEverGreen provides customers with
a way to generate immediate energy savings and positive cash flow from
operations starting with the first day of the agreement, all without any
up-front or large capital investments. It provides a further opportunity for
customers to meet or exceed emission reduction targets and achieve energy
reduction targets, while preserving capital for other projects.

    NOTE: This press release may contain forward-looking statements relating
to, and amongst other things, based on management's expectations, estimates
and projections. Such statements including those about the Company's strategy
for growth, product development, market position, expected expenditures and
financial results are forward looking statements. These statements are not
guarantees of future performance and involve a number of risks, uncertainties
and assumptions. Many factors could cause results to differ materially from
those stated. The Company disclaims any obligation to publicly update or
revise any such statements.

    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.

    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),
THERMALONOx(TM) and THERMALOZOMAx(TM), THERMAL AUD(TM) are trademarks of
Thermal Energy International. GEM(R) is a trademark used under exclusive
license from Gardner Energy Management Ltd.
    For more information about Thermal Energy International Inc. (TSX-V:
TMG), visit our website at www.thermalenergy.com.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    %SEDAR: 00007994E




For further information:

For further information: Stuart McCarthy, Investor Relations and
Communications, (613) 723-6776, ext. 220, stuart.mccarthy@thermalenergy.com

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