Ener-Core and Dresser-Rand Business Initiate Operation and Full Scale Test of First 2 MW System Utilizing Power Oxidation Technology

IRVINE, Calif.-- Ener-Core, Inc. (OTCQB:ENCR), the world’s only provider of Power Oxidation technology and equipment that generates clean power from waste and low-quality gases from a wide variety of industries, initiated its Full Scale Acceptance Test (FSAT) connecting the company’s first-ever 2 MW Power Oxidizer with the Dresser-Rand business’ KG2-3G gas turbine. The FSAT involves a fully functional system in a configuration that enables testing of all performance against specifications.

After successful testing, the FSAT will trigger the payment of a $1.6 million license fee from the Dresser-Rand business, part of Siemens Power and Gas Division, payable to Ener-Core. The license agreement grants the Dresser-Rand business exclusive rights to commercialize the Ener-Core Power Oxidizer technology in the 1 to 4 MW range, bundled with the Dresser-Rand business’ KG2 gas turbine product line. The combined solution provides both companies with a unique and significant commercial advantage to address the burgeoning market of emissions compliance.

Also following successful testing, the Dresser-Rand business can assemble and ship the first two commercial 2 MW systems to Pacific Ethanol, Inc. (NASDAQ:PEIX), who placed the first purchase order for this large-scale technology. It will also enable Ener-Core’s and the Dresser-Rand business’ manufacturing teams to finalize the system’s design in anticipation of future customer orders.

To see the fully assembled and operational unit please go to the following links:

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Alain Castro, CEO of Ener-Core, said, “Launching this innovative power-generation technology at the utility-scale size represents a significant contribution to both the energy industry as well as to the pollution abatement industry. A 2 MW system is large enough to power 2,000 to 3,000 homes; with this system we can enable many industries to generate this amount of power from their poor-quality waste gases that usually get discarded and end up as air pollution.”

Over the past 18 months, the engineering teams at Ener-Core and the Dresser-Rand business have worked together as a cohesive multinational team across multiple cities to design and build this first system of its kind. This same team also put into place a strong test program to ensure these systems are adequately tested prior to deployment in the field. “We have a high level of confidence that the FSAT will go smoothly and look forward to analyzing the results,” said Castro.

Ener-Core signed a Commercial License Agreement with Dresser-Rand in November 2014. Since then, Ener-Core’s engineering team has been working closely with a multinational team of engineers from the Dresser-Rand business to design, build, test, and deploy the 2 MW system. The first major technical milestone was achieved in May 2015 when the teams successfully completed a Sub Scale Acceptance Test (SSAT). The SSAT demonstrated that Ener-Core’s technology could generate enough heat from low-quality gases to power a 2 MW gas turbine. This FSAT will be the final test within the framework of the Dresser-Rand business license agreement with Ener-Core, and will trigger the full commercial deployment of this unique 2 MW system that has been designed specifically to produce clean energy from low-quality industrial waste gases.

The Dresser-Rand business, part of Siemens Power and Gas (PG), is a leading supplier of mission-critical, high-speed rotating equipment solutions to the worldwide oil, gas, petrochemical and process industries. As part of the global Siemens family, the Dresser-Rand business offers an equipment portfolio that includes turbo and reciprocating compressors; steam turbines; industrial and aero-derivative gas turbines; high-speed engines; and modular power substations. With the world’s largest installed base, one of the world’s largest technical support and service center networks, and a presence in more than 150 countries worldwide, the Dresser-Rand business delivers local solutions and services on a global scale.

About Ener-Core

Irvine, California-based Ener-Core, Inc. (ENCR) designs, manufactures and has commercially deployed unique systems that generate base load, clean power from polluting waste gases including methane. Ener-Core's patented Power Oxidizer is the only solution of its kind that turns one of the most potent pollution sources into a profitable, "always on" source of clean energy. Ener-Core's technology offers a revolutionary alternative to the flaring (burning) of gaseous pollution while generating operating efficiencies and ensuring compliance with costly environmental regulations.

Ener-Core offers the 250kW Ener-Core EcoStation EC250 ("EC250") and the larger counterpart, the 2MW Ener-Core Powerstation KG2-3GEF/PO.

Cautionary Statement Regarding Forward-Looking Statements

Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Information provided by Ener-Core, Inc., such as online or printed documents, publications or information available via its website may contain forward-looking statements that involve risks, uncertainties, assumptions, and other factors, which, if they do not materialize or prove correct, could cause its results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies, and objectives of management for future operations; any statements regarding proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief; and any statements of assumptions underlying any of the foregoing. The information contained in this release is as of the date of this press release. Except as otherwise expressly referenced herein, Ener-Core assumes no obligation to update forward-looking statements.

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Source: Ener-Core, Inc.