Universal Clean Sustainable Energy

Dear Mr. Jim Ludwig, Mr. Brad Loveless, Westar Management Team, et.al;

Please see the Babcock Power & ThermoEnergy announcement below and remember on that on March 11 you responded to my proposal of collaboration in clean community energy technology saying; Westar has many internal and external experts on the topics you have mentioned” and ” I’m confident we have the proper amount of consultation we need.” and “I don’t see a role for you as a consultant.

Now we learn that Babcock Power & ThermoEnergy is announcing a carbon capture and clean energy project very similar in concept to what I proposed and it seems it is apparently about to get underway. I believe the Babcock Power & ThermoEnergy project is not likely as fuel flexible and scaleable and focused on distributed generation at the community level as the AAEC technology is. Nor is it as advanced in concept due to the above.

Therefore; in light of the new information that just emerged from Babcock Power & ThermoEnergy; I would like to once more inquire if you see any need to reconsider my proposal and reconsider the Westar business model of centralized power? Again I would like to ask if you are willing to discuss the very real and now more clearly visible possibilities embodied in the collaboration I proposed in new clean energy technology along the lines of Babcock’s but focused more on the needs of all counties and communities in Kansas.

Again I would like to stress that I believe community energy is the coming thing whether Westar recognizes it or not, and my company AAEC has developed and patented technology for conversion of the same feedstocks Babcock is focusing on and the AAEC technology (if co-developed with Westar’s participation) could be manufactured in Kansas and be made available to Westar energy for unlimited applications in all of the Kansas counties Westar delivers services to.

Westar has a responsibility to its customers. It also has a location alongside the Lawrence Energy Center that could serve as the technology development site. I’m referring to the former Callery Chemical plant site.

Don’t you understand that my proposal is worthy of further consideration with our energy future so much “up in the air” these days? The Lawrence paper today is reporting….

Is Westar willing to stand aside and let Topeka shift the Kansas clean energy development effort to Western Kansas and see its customers pay for this shift?

Or does Westar intend to seek its own 2 cent per meter charge while also ignoring advanced energy technology developed by a Westar customer right under Westar’s nose and ignore the emerging carbon capture market?

Les Blevins
AAEC

Babcock Power & ThermoEnergy Join Forces To Develop Advanced Carbon Capture Power Plant

© Business Wire 2008
2008-04-29

www.babcockpower.com - Technical Contact: Babcock Power Environmental Inc. Eric Balles, 508-854-4004 Sr. VP Engineering & Technology or Media contact: Babcock Power Inc. Steven E. Sabo, 508-854-3630 Director, Marketing & Communications Babcock Power Inc. of Danvers, Massachusetts and ThermoEnergy Corporation (”ThermoEnergy”) (OTCBB: TMEN), announce the signing of a Memorandum of Understanding as a prelude to the formation of a joint effort to commercialize the Company’s zero air emission power plant design called ThermoEnergy Integrated Power System (”TIPS”). Based on pressurized oxy-fuel combustion technology, TIPS converts coal, natural gas, oil, and biomass into energy with near-zero air emissions. In addition, it captures carbon dioxide (”CO2″) in a clean pressurized form ready for sequestration or beneficial reuse such as secondary and tertiary oil recovery.

“As an industry and market leader in environmental air pollution controls, combustion technology, steam generation and thermal processes for the power generation industry, Babcock Power is ideally positioned to commercialize this revolutionary process,” stated James F. Wood, President and CEO of Babcock Power Inc. “Our long history and extensive expertise in designing and furnishing steam generators, combustion systems, and a wide variety of heat exchangers, including the application of in-house heat transfer and Computational Fluid Dynamics (CFD) modeling capabilities, and ThermoEnergy’s commitment to the advancement of new technology, positions us together to play a significant role in the reduction of global greenhouse gases.”

“The commitment from a company of the size and capabilities as Babcock Power marks a pivotal point in the development and commercialization of this important and timely new technology,” said Dennis Cossey, Chairman and CEO of ThermoEnergy. “Achieving zero air emissions from fossil fuel power plants has long represented the ultimate goal within the energy industry and with Babcock Power joining the effort I am confident we are on the verge of realizing this goal,” said Cossey.

“The simplicity and efficiency of the TIPS approach offers a reliable and cost effective design for carbon-capture, near-zero emission power plants,” said Alex Fassbender, President of ThermoEnergy Power Systems, LLC. “With relatively few unit operations, TIPS enhances power plant reliability, while its process efficiency comes from recovering the latent heat of vaporization of produced and entrained water. Adding a second reheat to the steam cycle efficiency, coupled with a simple, low-energy process to recover pipeline quality CO2 gives TIPS a competitive edge over other conversion technologies,” said Fassbender.

Babcock and ThermoEnergy engineers will begin work immediately to finalize the data needed to design, construct and operate a large-scale pilot plant at a host site.

Babcock Power Inc., (www.babcockpower.com) through its subsidiaries, is one of the world’s leading suppliers of technology, equipment, and services to the power generation industry. Babcock Power subsidiary companies include; Vogt Power International (Louisville, KY), Thermal Engineering International (USA) Inc. (Santa Fe Springs, CA), Babcock Power Environmental, Riley Power Inc. and Babcock Power Services (Worcester, MA), Boiler Tube Company of America (Lyman, SC), and TEi Construction Services, Inc. (Duncan, SC).

ThermoEnergy Corporation is a diversified technologies company engaged in the worldwide commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. The wastewater treatment technologies are consolidated in our subsidiary, CASTion Corporation (”CASTion”), a fast growing developer and manufacturer of innovative wastewater treatment and recovery systems to industrial and municipal clients. The systems are unique because they meet environmental regulations while providing a rapid return on investment by recovering and reusing expensive feedstock’s, reducing contaminated wastewater discharge and reusing wastewater in process operations. CASTion’s wastewater treatment systems have application in aerospace, food processing, metal finishing, refineries, manufacturing and municipal wastewater. We assemble and ship our waste water treatment products from our 20,000 square foot manufacturing facility in Worcester, Massachusetts. The power generation technologies are consolidated in our subsidiary, ThermoEnergy Power Systems, LLC (”TEPS”). The economic and environmental matrix of the Company’s technologies represents a paradigm shift in these key infrastructure industries. The Company currently has offices in Little Rock, AR, Worcester, MA, Hudson, MA, and New York, NY, Jacksonville, FL and Baton Rouge, LA. Additional information on the Company and its technologies can be found on its website at (www.thermoenergy.com), or (www.castion.com) for wastewater treatment specific information.

THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE “FORWARD LOOKING” STATEMENTS, USUALLY CONTAINING THE WORD “BELIEVE”, “ESTIMATE”, “PROJECT”, “EXPECT” OR SIMILAR EXPRESSIONS. FORWARD LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FORWARD LOOKING STATEMENTS. FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF THE COMPANY’S PRODUCTS AND SERVICES IN THE MARKETPLACE, COMPETITIVE FACTORS, CHANGES IN REGULATORY ENVIRONMENTS AND OTHER RISKS DETAILED IN THE COMPANY’S PERIDOIC REPORT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. BY MAKING THESE FORWARD LOOKING STATEMENTS, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR CHANGES.

¶ Babcock Power and ThermoEnergy Sign Agreement to Pursue
Development and Commercialization of the TIPS Technology