21 September, 2011

Sargas and Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) have agreed with another giant; SNC-Lavalin Constructors Inc. to build ultra clean power plants based on Norwegian Sargas technology. The alliance delivers low cost CO2 capture solutions with bankable guaranteed performance and warranties which lead to a new era with ultra clean power from fossil fuels.

Sargas patented CO2 capture from exhaust gas of power plants results in a cost of electricity which is commercially competitive with today's electricity prices. The key differentiator enabling the low cost is using high gas pressure that greatly improves the efficiency and reduces space, two very important factors.

The ultra clean power plant captures up to 99% of the CO2, 99,5% of the SO2, and 99,95% of the NOx from the exhaust of fossil fuels such as gas or coal and also in combination with biomass enabling Bio Energy Carbon Capture and Storage (BECCS) which will speed up the climate change mitigation.

By using the captured CO2 for injection in oil fields for Enhanced Oil Recovery, up to 5 additional barrels of oil for each injected ton CO2 may be extracted from the field adding value to the concept. The combination of power and oil production may become a game changer in the clean energy industry where the economic and environmental benefits will drive investment in Carbon Capture and Storage ("CCS") infrastructure.

DSME pre-assembles the compact plants in their shipyard in Korea and SNC-Lavalin will manage the projects and execute engineering and local site construction. The companies together with more than 30 000 employees, ensure an industrialized roll out of the technology with the guaranteed performance necessary for financing, DSME specialise in shipbuilding and offshore construction with decades of experience in building various merchant vessels, offshore platforms, drilling rigs, floating oil production units, and naval vessels and is a pioneer of modularized construction.

SNC-Lavalin is a leading engineering, procurement and construction firm with locations in over 100 countries serving several industries, including the power industry.

The competences of the Parties complement each other and the Parties have signed an alliance to develop power plant applications with CCS Project opportunities globally using Sargas' pressurised combustion and capture technology.

The Parties are currently working on commercial Carbon capture opportunities in Europe, North America and MEA (Middle East and Africa).

"We are pleased to expand our Alliance with Sargas by having SNC-Lavalin join us said Koh, Young-Youl, Executive Vice President of DSME. We view SNC-Lavalin as an ideal partner given its solid world class expertise in designing, building and financing large thermal power projects. We have been working with Sargas for over three years and are confident that now is the time to accelerate the commercial deployment of the technology. The thermal power market presents tremendous growth opportunities for use of this innovative technology to significantly reduce emissions and generate electricity efficiently."

"The Sargas promise is to provide inexpensive, robust clean energy solutions that the developed and developing countries can afford. Users are increasingly focusing on costs, rightfully so. By joining hands, DSME and SLCI will greatly contribute to making this happen, much in advance of the common thought of timelines for CCS. This will break open CCS and EOR globally, in a most credible and affordable way", said Henrik Fleischer, Chairman and C.E.O. of Sargas AS.

About DSME

DSME is a diversified company and one of the world's largest shipbuilders. The South Korea-based company was established in 1973 and today is a first-class builder of commercial ships; LNG, LPG, containerships, VLCC, COT, Ro-Ro and other types, naval ships, submarines, destroyers as well as offshore projects e.g. drilling rigs, platforms and floating oil production units. DSME employs more than 16 000 design, R&D personnel and skilled workers. DSME is publicly listed on the Korea Stock Exchange with a turnover of over 12 trillion won in 2011 and a shipyard of over 4 Million m2.

For more information, visit www.dsme.co.kr

About SNC-Lavalin

SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the thermal power sector, and in the provision of operations and maintenance services. SNC-Lavalin founded in 1911 has 21 000 employees in offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. SNC-Lavalin is an international leader in engineering and construction, and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services with a net revenue 2010 of Can $6.3 billion. For more information, visit www.snclavalin.com

About Sargas

Sargas is a Norwegian technology company that holds patents in the field of CCS technology with offices in Norway, Sweden, Belgium and USA. Sargas pressurized CO2 capture technologies requires the lowest amount of energy to capture CO2 from flue gas which will revolutionize the prospects of Carbon Capture and Storage (CCS) as well as Enhanced Oil Recovery (EOR) in large scale.