ThermoEnergy Corporation announced that it has signed an $900,000 contract with Unity Power Alliance (UPA) to build a bench-scale "flameless" combustion system that will be used to test and optimize UPA's pressurized oxy-combustion technology for clean coal power generation. The Unity Power Alliance, a joint venture between ThermoEnergy Corporation and ITEA, S.p.A., recently announced that it received a $1 Million Phase 1 award from the U.S. Department of Energy to help fund the project under a special DOE program to advance technologies for efficient, clean coal power and carbon capture. After successful completion of the first phase of the program, it is anticipated that a much larger Phase 2 will occur, with DOE awards in the $10-20 million range applied toward the construction of a pilot scale plant.

Construction of the bench scale unit will begin in late in Q4, 2012 at ThermoEnergy's 48,000 sq ft, manufacturing facility in Worcester, Massachusetts.