[May 07, 2013]

R3 Fusion Executes Contract for Recovery and Reuse of Frac Water in the Marcellus Shale Region

R3 Fusion Inc., a clean technology company, based in Rensselear Technology Park, Troy, N.Y., announced that it has executed a contract with Hydro Recovery LP of Blossburg, Pennsylvania, to install its patented SPaCeR^TM technology for the recovery and reuse of produced water, generated by hydraulic fracturing "fracking" operations located in the Marcellus Shale Region. Installation will commence during the last week of May at Hydro Recovery LP's Blossburg Pa. site and the unit is anticipated to be operational by early June. The unit will convert produced and flowback brine into pure water meeting WMGR123 Appendix A standards that will be reused for fracking.

Dr. Roshan (News - Alert) Jachuck, the President & CTO of R3 Fusion, said, "We are delighted with this opportunity and anticipate the use of thermal systems as the key to treat produced water in the Marcellus Shale region, due to their high total dissolved salt content (TDS)." Mr. Chris Wunz, the COO of Hydro Recovery, LP, said, "We are delighted to have R3 Fusion as a water treatment partner.Their technology represents an exciting addition to our Marcellus liquid waste treatment and recycling capabilities."

This contract was the result of successful onsite demonstration of the technology, first in Midland, Texas and then in Blossburg, Pa., during the last quarter of 2012. The SPaCeR^TM system is capable of high volume, energy efficient separation of pure water from a range of fluids including briny solutions, industrial waste stream, frac water, completion fluids in oil and gas drilling, and many others. Unconventional gas reserves in shale deposits have greatly extended the fossil fuel reserves available to the United States and will be critical in power generation, home heating, and transportation as a substitute for gasoline and diesel. Accessing these reserves has a huge potential benefit to our national security and economy. However there are concerns about the disposal of water used and produced in the fracking process. Up to 5 million gallons of water mixed with sand and chemicals are injected into a well during fracking to break up rock thousands of feet underground and release trapped natural gas. Disposal or reuse of the water can be expensive and problematic depending on chemistry, proximity to treatment facilities, and treatment required.

R3 Fusion expects to recycle the water used in fracking operations by using its proprietary water recovery and reuse concept. By the end of the year, the company plans to install several of its full-scale units capable of producing 1 bbl/min of clean water. "By offering this unprecedented solution to what has become a major environmental concern, one of the largest domestic energy resources can now be accessible with minimal negative environmental impact," said Rick Winter, a Director of R3 Fusion.

About R3 Fusion, Inc.

R3 Fusion, Inc. is a cleantech company focused on the development and commercial application of process intensification technology to water purification and desalination in a wide range of markets.

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