Re Contract

RNS Number:9477M
Compact Power Holdings PLC
30 November 2006



     Compact Power wins Euro1.64 million European contract. 


Bristol 29 November 2006


Compact Power Holdings plc ("Compact Power"), the AIM listed waste and biomass
to energy company, is pleased to announce that it has been awarded a Euro1.64
million contract by Italcementi S.p.A. of Bergamo, Italy.

The contract is to design, supply and install a Compact Power pyrolysis and
gasification plant in Italcementi's cement plant at Salerno in Southern Italy.
The plant will produce a fuel gas generated from waste material which will be
fed into the cement plant, replacing fossil fuels normally used in the process.

The technology is an adapted version of the first two stages of Compact Power's
pyrolysis and gasification process used at Avonmouth to produce energy from
waste with minimal environmental impact.

The first stage of the contract will be a joint detailed study of the Salerno
plant to ensure that the proposed Compact Power plant will meet Italcementi's
operational, technical and environmental requirements.This study will commence
immediately and is scheduled to take approximately four months. On conclusion
of the feasibility study. the plant will be installed and handed over to
Italcimenti eight months later. 

John Acton, Chief Executive of Compact Power, commented: "We are delighted to
have secured this contract with Italcementi which is one of the world's leading
cement companies and is renowned for promoting best practices for the use of
alternative materials and fuels. This will be a reference plant for the entire
industry and will demonstrate the principle of converting waste to fuel gas for
a wide range of industrial applications"

Italcementi operate more than 70 cement manufacturing plants around the world
and following a successful operation of the technology at the Salerno plant, 
there is potential for further installations.


Note to Editors

About Compact Power

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.


About Italcementi

The Italcementi Group, with a production capacity of approximately 70 million
tons of cement annually, is the fifth largest cement producer in the world and
the biggest in the Mediterranean area.  Italcementi is one of Italy's 10 largest
industrial companies and is included in the S&P/MIB Index of the Italian Stock
Exchange.


Contacts

Nic Cooper - Chairman Compact Power                          [phone]

John Acton - Chief Executive, Compact Power                  [phone]

Richard Hogg - Business Development Director, 
Compact Power Ltd.                                           [phone]

Barrie Newton - Corporate Synergy                            [phone]

Paul Vann/Ken Rees - Winningtons Financial Limited           [phone]
                                                    Mobile:  [phone] or
                                                             [phone]
Angelo Caielli - Procurement Director - Italcementi          [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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