Methane from Sewage Works Turned into Electricity and Heat

Methane from Sewage Works Turned into Electricity and Heat

In December 2007 Helbio S.A., a Morphic Technologies subsidiary, received an
order for an energy system for converting biogas from sewage into electricity
and heat. Following a four-month trial period, all tests show that the system
has lived up to its promise and Morphic has therefore decided to launch this
combination of energy systems in a range of output categories on a wider front
in Europe.

In the system, heat or electricity is extracted from biogas, which in turn is
extracted directly from sewage. The first part of the system is a purification
filter for the biogas that filters out sulfur, malodorous substances and other
impurities. The biogas is then converted into hydrogen using Helbio's unique
reformer before being fed to a fuel cell manufactured by Morphic's Italian
subsidiary, Exergy Fuel Cells, in Bologna. 

The buyer is Patras Municipal Corporation for Water Supply and Waste Water
Management and the system produces 20 kW of electrical energy and 25 kW of heat
energy. It was delivered in June 2008 and has since been installed, calibrated
and tested. 

The unique feature of the concept, which has now been verified in this pilot
system, is that the generated hydrogen is sufficiently pure to run a fuel cell
without contaminating the membranes and catalyst. The carbon monoxide content of
the hydrogen must be less than 50 ppm (parts per million). Helbio's biogas
reformer has been shown to achieve a purity of 1.5 ppm CO, which is
exceptionally good.

“We are pleased with the system's performance. As far as we know, this is the
first time a biogas system with a reformer and fuel cell has been demonstrated
in practice. The next step will be to offer products with higher outputs - 125
kW and 250 kW fuel cells - in partnership with Exergy Fuel Cells,” Professor
Xenophon Verykios, CEO of Helbio, says.

Since 2005 the Morphic Group has been engaged in intensive development of
environmentally friendly energy systems that enable local production of
electricity, heat and hydrogen. By using wind power, solar energy and biogas in
energy systems based on a combination of reformers and fuel cells, the Group has
created a new type of energy system. The systems represent a completely new way
of converting, storing and using renewable energy. 

All Key Components Now Available for Sale 
All crucial components have now been developed and are available for sale
through Morphic's subsidiaries.

“I am very pleased that we are already seeing the fruits of the partnerships
among our specialized subsidiaries. Sewage treatment is just one area where the
reformer-fuel cell system combination can be put to direct use. Incineration
plants, refuse stations, industries and agriculture are other prioritized areas.
These impressive test results open up the possibility of offering these types of
energy systems to the global market,” Martin Valfridsson, CEO of Morphic
Technologies, says. 


About Helbio 
Since it was established in 2001 Helbio has attained a leading position in the
development of technology for cost-effective production of hydrogen. Helbio's
key strength is its leading expertise in catalyst technology, combined with
innovative, patented technical solutions for “reformers”, which can be used in
building systems designed to convert liquid and gaseous fuels such as alcohols
and hydrocarbons into hydrogen. 

The strength of this technology lie in its high level of efficiency, low
production costs and, perhaps most importantly, the opportunities it provides to
produce hydrogen locally. Two of the factors that have long been obstacles to a
wider distribution of hydrogen technology are thereby eliminated - high
production costs and difficulties linked to distribution. 

For more information, please contact:
Johannes Falk, Vice President, Executive vice President, Investor Relations, 
Morphic Technologies AB (publ)
Phone: +46 (0)70-676 73 93
E-mail: johannes.falk@morphic.se

This is Morphic
Morphic is a Swedish engineering group operating in the areas of fuels cells,
wind power, fuel cell energy systems and engineering technology. The Group has
about 230 employees and conducts operations in six countries - Sweden, Norway,
Japan, Greece, Italy and Switzerland. Morphic Technologies' B shares have been
listed on the OMX Nordic Exchange since March 4, 2008, and the number of
shareholders is about 28,000.