Oregon Wastewater Treatment Plant First in the U.S. to Recycle Nutrients Into 'Green' Commercial Fertilizer

* Reuters is not responsible for the content in this press release.

Wed Jun 10, 2009 9:01am EDT

  PORTLAND, OREGON AND VANCOUVER, BRITISH COLUMBIA, Jun
10 (MARKET WIRE) -- 
Oregon Governor Ted Kulongoski will join Robert F. Kennedy Jr. at the
opening today of the first commercial facility in the United States to
incorporate innovative new technology that recovers phosphorus and other
nutrients from wastewater and recycles them into environmentally-safe
premium-quality commercial fertilizer.

    The new technology is located in suburban Portland at Clean Water
Services' Durham Advanced Wastewater Treatment Facility (Tigard, OR).
Clean Water Services, a water resource management utility serving more
than 500,000 customers in urban Washington County west of Portland, owns
and operates the technology in an innovative public/private partnership
with Ostara Nutrient Recovery Technologies Inc. of Vancouver.

    Developed by Ostara, the new technology provides benefits to Clean Water
Services, its ratepayers and the environment by increasing plant capacity
and reducing maintenance costs, while also creating a revenue-generating
by-product.

    Clean Water Services and Ostara share revenue from the commercial sale of
the fertilizer by-product, which is being marketed throughout Oregon and
the Pacific Northwest by Ostara under the brand name Crystal Green(R).

    The Ostara technology has been operating at the Durham facility since May
2009 and is being officially unveiled today at a ceremony attended by
government and business leaders. Speakers at the ceremony include
Governor Kulongoski; Robert F. Kennedy, Jr., prominent environmental
lawyer and a Director of Ostara; Roy Rogers, Clean Water Services Board
of Directors; and Phillip Abrary, President and CEO of Ostara.

    Bill Gaffi, General Manager at Clean Water Services, said that partnering
with Ostara provides a solid return on investment for the utility and its
ratepayers.

    "This technology will save our ratepayers money by extracting nutrients
which would otherwise clog our pipes and reduce our plant's treatment
capacity, while also creating a unique and environmentally safe
commercial fertilizer product," said Gaffi. "We anticipate that the $2.5
million capital cost of incorporating this technology will be recovered
within five years from a combination of Crystal Green(R) revenues and
operational cost savings of up to $500,000 per year."

    Kennedy said the incorporation of the Ostara technology at the Durham
plant is the kind of infrastructure solution needed in hundreds of
municipalities across the United States.

    "Local and state governments should take note that the win-win benefits
of improved economics and reduced environmental impact achieved here can
be replicated throughout the United States. This will save money for your
ratepayers and also reduce the impact your wastewater treatment plants
have on the waterways and the water table in and near your communities,"
Kennedy said.

    Abrary said Clean Water Services' Durham facility is the first in the
world to implement a full-scale commercial operation, where 100 percent
of the wastewater stream is being treated with Ostara's nutrient recovery
technology. A municipal wastewater treatment plant in Edmonton, Alberta,
has been operating with the Ostara technology for more than a year,
however it is not a full-scale operation like the commercial facility in
Oregon to be unveiled today.

    Several other commercial applications of the Ostara technology are in
planning and design stages after successful field trials since 2007 by
municipalities, ethanol biofuel plants and food processing plants in the
United States and Canada. The Company estimates that approximately 200
plants in North America and several hundred plants in Europe and the rest
of the world are candidates for the Ostara technology.

    Abrary said treatment systems typically separate sewage sludge solids
from liquids. Treated solids can be recycled as soil amendments, as the
Durham facility does. Liquids are typically reprocessed back through the
wastewater system, which adds costs to the system by clogging pipes with
a concrete-like scale called struvite - the result of phosphorus and
ammonia (nitrogen) combining with magnesium - and by consuming up to 25
percent of the system's capacity.

    "Our technology integrates into the treatment system, processes the
sludge liquids and recovers phosphorus and other nutrients - and then
converts them into a high-quality environmentally friendly commercial
fertilizer that can generate revenue for the local utility," said Abrary.

    The Clean Water Services' Nutrient Recovery facility is projected to
remove more than 90 percent of the phosphorus in the wastewater and
produce 500 tons of Crystal Green(R) fertilizer annually. Clean Water
Services will share revenue from the commercial sale of the fertilizer
with Ostara, and it is expected that the initial investment in the
technology will be paid back within five years.

    About Crystal Green(R)

    Crystal Green(R) is the only slow-release fertilizer on the market with a
combination of nitrogen, phosphorus and magnesium (5-28-0 +10% Mg).
Crystal Green(R) is environmentally sustainable, cost-effective for
distributors and end-users and proven safe by numerous U.S. universities
- including Oregon State University. Crystal Green(R) was approved for
use as a fertilizer by the Oregon Department of Agriculture in 2008 and
is being marketed throughout Oregon and the Pacific Northwest. Crystal
Green(R) is an ideal product for turf (golf courses) markets, container
nurseries, specialty agriculture and other markets that value
slow-release fertilizers. The product's slow release characteristics
provide a source of phosphorus that will not leach into the water table.

    About Clean Water Services

    Clean Water Services is a water resource management utility in urban
Washington County, Oregon providing innovative wastewater and stormwater
services for more than 500,000 residents. Clean Water Services operates
four wastewater treatment facilities; constructs and maintains flood
management and water quality projects; manages flow in the Tualatin
River; and coordinates regional water supply planning. The Durham
Advanced Wastewater Treatment Facility cleans more than 20 million
gallons a day of flow from the cities of Beaverton, Tigard, Sherwood,
Tualatin, Durham and King City, and portions of Clackamas and Multnomah
Counties. In 2005, the U.S. Enviromental Protection Agency named the
Durham Facility the best operated and maintained advanced wastewater
treatment plant in the nation. For more information, visit the website at
www.cleanwaterservices.org.

    About Ostara

    Ostara Nutrient Recovery Technologies Inc., founded in 2005, is a
Vancouver-based company commercializing proprietary technologies that
recover resources from wastewater and recycle them into valuable
products. Ostara's struvite recovery process, developed at the University
of British Columbia, recovers pollutants that would otherwise be released
into the environment, helps wastewater treatment plants reduce operating
costs and meet environmental regulations, and provides municipalities and
utilities with revenue from the sale of the recovered pollutants that are
recycled into environmentally safe slow-release fertilizer, Crystal
Green(R). For more information: visit www.ostara.com and
www.crystalgreen.com.

Contacts:
Clean Water Services
Mark Jockers
Government and Public Affairs Manager
(503) 681-4450 or (503) 701-4293 (mobile)
JockersM@CleanWaterServices.org
www.cleanwaterservices.org

Ostara Nutrient Recovery Technologies Inc.
Debra Hadden
Public Relations
(604) 240-3196
dhadden@ostara.com
www.ostara.com

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