For Immediate Release: March 4, 1998
Media Contact: Claudia Chandler -- 916 654-4989

Alzeta Corporation presents its first royalty payment to California Energy Commission

In 1994, Alzeta Corporation received co-funding from the California Energy Commission to build, install and test new burner technology designed for the oil fields of the San Joaquin Valley. Now the Santa Clara-based company has begun paying the first royalties to the state for its investment.

The Energy Commission provided $235,000 to Alzeta to help develop a full size, ultra-low emission, natural gas-fired burner for Chevron's thermally enhanced oil recovery steam generator facility near Bakersfield. The cleaner-burning design is now being used on other industrial boilers, and Alzeta Chairman Robert Kendall presented the company's first royalty check of $4,255 at the Energy Commission's March 4, 1998, Business Meeting in Sacramento.

The initial payment is based on four commercial sales of the Alzeta CSBTM burner. Dow Chemical operates a 25 MMBtu/hr burner at its chemical plant in Pittsburg. San Francisco Thermal uses a 125 MMBtu/hr CSBTM at their central plant that provides steam for heating and cooling to over 200 buildings in downtown San Francisco. The Contadina tomato processing plant in Woodland makes steam required to manufacture tomato paste with the largest of the CSBs sold to date, and the technology is also used at the Darling International rendering plant near Turlock.

State government will receive 1.5 percent of gross revenues from direct sales of the product, and 20 percent of all license revenues. That could amount to one-and-a-half times the amount of the state's funding, or nearly $354,000.

"Our patented burner technology utilizes fuel-air premixing and internal flue gas recirculation to lower NOx and CO emissions while maintaining good flame stability," explained Alzeta Chairman Kendall. "The resulting burner provides plant operators with a simple approach to meeting stringent air quality standards throughout the state."

"Demonstration projects like this exemplify what we are trying to accomplish at the Energy Commission with programs like our Public Interest Energy Research (PIER) Program," said Energy Commission Vice Chair Dr. David A. Rohy, presiding member of the Commission's RD&D Committee. "While this project was not a PIER project, Alzeta saw a need, identified the pathway to market, and with our financial help developed a product to meet that need. The result is a simple clean-burning combustor that can be used in various industrial applications."

"It always takes a while for innovative products to pay off in the marketplace, but the goal of all of our programs - including PIER - is to improve the quality of life for California's citizens by providing environmentally sound, safe, reliable and affordable energy services and products," said Rohy.

Under the state's newly deregulated electricity generation market, the Commission was given responsibility for public interest energy research and development. It will award up to $61.8 million a year for the next four years to conduct the most promising public interest energy research. The first general request for proposals was released February 13, with proposals due on March 20, 1998.

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For more information contact:

Alzeta Corporation
John Sullivan, Vice President

California Energy Commission
Claudia Chandler, Assistant Executive Director

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