GBP5m Funding from DEFRA

RNS Number:0082M
Compact Power Holdings PLC
14 November 2006

For Immediate Release                                          14 November 2006    

                           COMPACT POWER HOLDINGS PLC
                                        
                        #5million Funding Award from DEFRA
                                        
        Government support for Compact Power waste to energy technology
                  signals go ahead for new plant at Avonmouth
                                        

Compact Power Holdings plc ("Compact Power"), the AIM listed waste and biomass
to energy company, is pleased to announce that it has completed a #5 million
funding deal with The Department for the Environment Food and Rural Affairs
(Defra) under their New Technologies Demonstrator Programme.

This funding clears the way for Compact Power to finalise the financing for a
major project at Avonmouth. This project will undertake a programme with Bristol
City Council to evaluate Compact Power's technology for the processing of
municipal waste.

"This programme will help Bristol City Council achieve its targets for diverting
biodegradable municipal waste from landfill and will show other Councils the
potential for this technology" says Nic Cooper, Chairman of Compact Power.

"As a result of the Defra initiative, we have also been able to take a new
approach to raising additional project finance on indicative terms that offer
greater benefits to Compact Power than the transaction previously announced with
BGE which is no longer proceeding. We expect the contract for this financing to
be finalised in next few weeks."

The new plant will have a processing capacity of 34,000 tonnes per year of
household waste producing up to 3.8 Megawatts of renewable energy using Compact
Power's technology. The plant is expected to be operational by the third quarter
of 2008.

The household waste will be supplied by Bristol City Council, and will help the
Council to achieve Government targets for diverting waste from landfill, thus
reducing the production of greenhouse gases and the environmental impact of
landfill.

Commenting on the agreement with Defra, Nic Cooper said:
"This approval by Defra is a very welcome recognition by Government of the
potential for our technology to make a significant contribution to its ambitious
environmental objectives. We look forward to working with Defra and their
advisers in making this project a real success."


Councillor Gary Hopkins of Bristol City Council, Executive Member for
Environment comments:
"We are pleased that Government is now supporting this Bristol based technology
which we have been encouraging for some time. It will make an important
contribution to our targets for landfill diversion and renewable energy. They
are key components of our Sustainability Programme and we look forward to our
collaboration with Compact Power on this project."


Dave Brooks, Head of New Technologies at Defra said:
"I am very pleased that this project can start operating as a demonstration
project. The degree of interest the demonstrator projects have generated
confirms that Defra was correct to take up the Strategy Unit's recommendation to
provide working examples in order that key decision makers could see them
operating at a commercial scale".

                                     -ends-
                                        

Note to Editors

Compact Power 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.


Enquiries:

Nic Cooper - Chairman, Compact PowerHoldings plc               [phone]
Richard Hogg- Business Development Director, 
Compact Power Ltd.                                             [phone]

Mike Coe  - Director, Corporate Synergy                        [phone]
Paul Vann - Winningtons Financial                              [phone]
                                                              Mob: [phone]




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