Energy Quest Inc. has a new application for its PyStR(TM) process. The company's hydrogen process, known as PyStR(TM) (Pyrolysis Steam Reforming), is a system that converts biomass and most any carbonaceous material into hydrogen and carbon dioxide. PtStR(TM), pronounced 'pie star,' technology involves the simultaneous pyrolysis and steam reforming of virtually any solid, liquid or gaseous fuel. Its products include separate high purity streams of hydrogen (H2), carbon dioxide (CO2) and nitrogen (N2) in a relatively low cost stainless steel or refractory lined vessel. More information on the PyStR(TM) is available on the EQI web-site: http://www.nrgqst.com/pystr.html. Being able to create a pure separate stream of CO2 makes it a valuable product for many applications, such as injecting into depleted oil well to extract more oil (Enhanced Oil Recovery using CO2), coal bed methane extraction using CO2, food and beverage industries and a feed stock for growing algae. Carbon dioxide, which is a key ingredient in growing algae, can by supplied from the PyStR(TM) process in a very controlled and efficient way. Providing ideal concentration levels of CO2 to the algae growing pods is important for achieving maximum growth levels over a given period of time. The company has been in discussions with a developer from the Cleveland area who has a unique strain of fast growing algae that require higher levels of CO2 than that provided from the ambient air.

Energy Quest Inc. announced that it has signed an agreement with Cancen Oil Canada Corp. to provide testing facilities and feedstock for the testing phase of the construction of a 1,000 barrels per day heavy crude oil upgrader. The upgrader will convert Heavy Crude Oil feed-stock to 32 API and above light oil. The Upgrader technology uses an electromagnetic field to align long chain hydrocarbon molecule chains, which are then subjected to ultrasonic energy waves. This process creates cavitation bubbles within crude oil, heavy oil, tank bottoms, or bitumen. With Energy Quest upgrader technology, the bubbles collapse at great temperature and pressure. The collapse of these bubbles causes the breaking of the long chain hydrocarbon molecules WITHOUT the need for external sources of heat and pressure used in current conventional processes. The overall process operates at lower temperatures and pressures which means that energy consumption is nominal and operating costs and maintenance costs are significantly reduced in comparison to other methods.

Energy Quest, Inc. announced a Joint Venture agreement with CREEnergy Oil & Gas Inc. of Edmonton, Alberta to develop and commercialize oil and gas assets owned by CREEnergy with a focus towards the environment. Energy Quest will provide proprietary technologies, equipment and project management such as its PyStR hydrogen generation process and oil upgrader, while CREEnergy will provide heavy crude oil to be upgraded. The Joint Venture will be called CREE Energy Quest and will be owned equally by the CREEnergy Oil & Gas Inc. and Energy Quest, Inc.