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Novera Energy Ltd (NVE)

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Tuesday 12 July, 2005

Novera Energy Ltd

NVE offered GBP5m from Defra

Novera Energy Ltd
12 July 2005

                                                            ASX/RNS ANNOUNCEMENT

12 July 2005



             Novera Energy offered £5m (A$11.9m) support from DEFRA
                     for London Sustainable Energy Facility

International renewable energy company, Novera Energy Limited (ASX/AIM: NVE)
today announced plans for the development of a Sustainable Energy Facility in
East London, turning a biomass fuel, made from residual household waste left
after recycling and composting, into a clean gas for renewable electricity
production.

The UK Department of Environment, Food and Rural Affairs (Defra) has selected
Novera as one of their preferred bidders under its New Technologies Demonstrator
Programme. Subject to final contract negotiations, Defra will purchase £5m
(A$11.9m) of services from Novera related to the development, construction and
demonstration of the facility, proposed for the London Borough of Havering.
Novera will own and operate the facility.

Novera Energy Chairman Don Stammer said the Sustainable Energy Facility will
produce renewable energy, curbing reliance on polluting fossil fuels and help
reduce the amount of waste going to landfill.

'We are delighted by the support we have received from Defra and their
confidence in our plans. We are just at the start of the project and plan to
submit a planning application in the coming months.  Before then we would like
to hear what local people think of the proposals and which issues they think are
priorities to be addressed in the planning application,' Dr Stammer said.

The facility will generate sufficient energy to power the equivalent of 10,000
homes, using a gasification technology already proven in Canada for the
conversion of biomass fuels.

The biomass fuel used in the facility will be produced from the residues of
household waste, supplied to the site following processing through recycling and
composting systems.

Highlights of the proposal include:

• Defra's New Technology Demonstrator Programme is providing £30m funding to
  a number of projects to support the development of technologies which will
  help to divert biodegradable waste away from landfill. The programme will
  demonstrate the technical, commercial and social viability of particular
  technologies, providing impartial environmental, economic and technical
  information to stakeholders and decision makers.

• A potential site has been identified and discussions with Ford Motor
  Company Limited are underway to secure the site.  Novera Energy and Ford are
  also in discussion about the Sustainable Energy Facility supplying renewable
  energy to Ford.

• The Sustainable Energy Facility will be supplied with around 90,000 tonnes
  per year of biomass fuel.

• The Sustainable Energy Facility will use gasification technology, a
  process by which a fuel (in this case produced from household organic waste
  processed offsite) is treated at a controlled temperature to produce a 
  synthetic gas which is then cleaned and used to fuel a standard steam-cycle 
  turbine electricity generator.  The gas is cleaned to a similar standard as 
  natural gas.   The gasification system, which will be supplied by Canadian 
  company Enerkem Technologies, is already proven.

• The Sustainable Energy Facility will be capable of generating around
  10MW of sustainable energy (64% of which is classified as renewable under UK
  legislation). The objectives of the project are to demonstrate at a commercial
  and economic scale the ability to gasify solid residues from municipal waste 
  in order to:

  o divert biodegradable municipal solid waste away from landfill in
    accordance with UK commitments to Article 5 of the EU Landfill Directive;

  o provide Defra with the basis for a full publicised research and
    development project on this particular technology and to assess its 
    potential for replication within other local authority waste management 
    systems;

  o produce clean renewable energy;

  o increase resource recovery from waste.

Novera expects to make a number of further announcements concerning the project
over the coming months.

Information about the project can found at www.sustainablelondon.co.uk

For further information please contact:

Project inquiries

Fiona MacIntosh, East London Project               01373 813 867 /07751 51 56 28
                                                  fiona.macintosh@ukonline.co.uk

Financial & Corporate inquiries
Janine Brewis, Gavin Anderson                      07818 048 163 / 020 7554 1400
                                                     jbrewis@gavinanderson.co.uk


For enquiries relating to Ford, contact Oliver Rowe at Ford Public Affairs
01277 252 216.








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