Diversified Energy Corporation and Evergreen Pulp Create Partnership

Gilbert, Arizona, USA, 29 March 2007 -- /PRNewswire/ -- Diversified Energy Corporation and Evergreen Pulp, Inc., today announced they have formed a partnership and submitted a proposal to pursue a renewable project being funded by the state of California.

The Public Interest Energy Research Natural Gas (PIER-NG) Program, a part of the California Energy Commission, is seeking research, development, and demonstration of technologies capable of replacing natural gas usage with renewable resources. The focus of the state solicitation is on biomass-to-gas and/or hybrid projects specifically addressing industrial and commercial process heating or combined heat and power needs. The state is expected to make an award this spring, with project execution occurring over a period of 36 months.

Diversified Energy Corporation is the prime contractor for the program, providing program management and the gasification technology to be demonstrated. Evergreen Pulp is acting as the host for the project at their kraft pulp mill in Eureka, California.

Diversified Energy will be introducing a unique and high-value gasification technology called HydroMax(R). The advanced gasification approach is based on a proven molten-metals reactor technology. It offers several critical advantages to industrial-scale customers such as Evergreen Pulp, including a compact size for simple integration, biomass feedstock flexibility, synthetic gas (syngas) output variability, and attractive economics. Previous technology development has included several bench-scale tests and extensive analyses and modeling. The PIER-NG program allows for the next logical step in the evolution of the HydroMax(R) technology.

Evergreen Pulp, Inc., is the largest unbleached kraft pulp mill in the United States. The proposed project for the state of California will place a single demonstration-scale reactor at the mill. The reactor will gasify low-value excess wood fines to create syngas. This syngas will be pumped into the burners of a process heating facility, offsetting the natural gas currently being used.

David Tsang, CEO of Evergreen Pulp, remarked on the project, "We are excited to move towards the implementation of this green technology that could eliminate our dependency on natural gas and produce biomass hydrogen for fuel cells at the same time. Through such projects, we endeavor to do our part in supporting California as a leader in the field of renewable fuel development."

"Evergreen Pulp is the perfect partner for this effort and we can't wait to begin replacing their natural gas with a renewable resource. HydroMax(R) offers an ideal solution to address the DEC000153 challenges faced with the high costs and price instability of natural gas," stated Phillip Brown, president and CEO of Diversified Energy Corporation.

The two companies have also discussed activities beyond the initial PIER-NG demonstration. This broader relationship could include installation of a full-scale HydroMax(R) system capable of generating enough high-Btu syngas to replace all of the natural gas consumed at the Eureka, California, plant. This would make Evergreen Pulp the first U.S. pulp mill to run its operations entirely fossil-fuel free.

About Diversified Energy Corporation:

Headquartered in Gilbert, Arizona, (a suburb of Phoenix), Diversified Energy Corporation (www.diversified-energy.com) is a privately held alternative and renewable energy company focused on maturing innovative technologies, developing commercial energy projects, and providing engineering services support to project developers. Principal areas of expertise include biofuels, gasification, and next-generation solar.

About Evergreen Pulp, Incorporated:

Evergreen Pulp, Inc (www.evergreenpulp.com) is the largest unbleached kraft pulp mill in North America. It is certified by the Chorine Free Products Association as being capable of producing totally chlorine free (TCF) pulp.

Source: Diversified Energy Corporation