Disposal

RNS Number:0854D
Compact Power Holdings PLC
17 May 2006


Compact Power and Scotgen Ltd. strike Dumfries deal.


Bristol 16th May 2006 Bristol based renewable energy technology developer
Compact Power has sold their subsidiary BATNEEC (Dumfries) Limited together with
the lease, planning permission, and Scottish Renewables Order for their Dumfries
project to Scotgen Ltd.


Compact Power receives #775,000 after costs from the deal.

After negotiation Scotgen Ltd. announced their intention to buy the site which
has planning permission for the construction of an energy from waste plant.
Compact Power is now continuing talks with Scotgen Ltd. with a view to supplying
  a Compact Power plant for the site.


Nic Cooper Chairman of Compact Power says:

"I am delighted that we have done this deal with Scotgen Ltd..  They are project
developers who clearly see the opportunities for the production of renewable
heat and power from waste and biomass and this deal allows us to focus our
resources as technology suppliers.  We have realised for sometime that the
Dargavel site is well suited for this use and the local community have been very
supportive of our efforts to develop this site.  I now hope we can quickly agree
terms for the with Scotgen Ltd. for the supply of one of our plants."


Joe Wilkinson of Scotgen Ltd. says:

"Scotgen Ltd. has a strategy to establish a significant presence in the energy
from waste market.  We are pleased to have reached agreement with Compact Power
and look forward to working with them to develop Dargavel which will be the
first of a number of projects that are planned over the next ten years."


Notes to editors


About Compact Power

Compact Power (LSE: CPO) a company listed on The London Stock Exchange (AIM) has
developed an innovative technology based on pyrolysis, gasification and high
temperature oxidation for the safe, economic and environmentally friendly
processing of a wide range of wastes and biomass with energy recovery.  The
company operates a commercial plant at Avonmouth, Bristol.

For more information, visit www.compactpower.co.uk


Contacts

Richard Hogg - Business Development Manager
Compact Power Ltd
Yara House
St Andrews Road
Avonmouth
Bristol
BS11 9HZ
T: 0117 9802910
M: 07771 734374
F: 0117 9802901
E: [e-mail]

Scotgen Ltd.
Joe Wilkinson
Scotgen Ltd.
T:  07899 060042
E: [e-mail]



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