We would like to give you a brief update on some breaking news from our client Cetus Energy.

We have been working closely with the founding team at Cetus for the past 15 months assisting them with both their corporate and commercialisation strategies. Pleasingly, over that time, the business has made some giant leaps forward. The summary below reflects just a small part of this exciting work.

Cetus Energy has recently signed an agreement with AGL, Australia’s largest privately owned Energy Company, to scope out a demonstration project in their Victorian Hydro electric operation. The project represents an important move forward for Cetus Energy, and is a further step toward commercialising the patented Cetus blade technology. From the media release you will see that AGL shares the Cetus enthusiasm.

Over the coming months Cetus will be completing the scoping project and moving forward to the Demonstration project. The objective is to clearly demonstrate that Cetus can significantly increase the capacity of an existing Hydro facility. Securing AGL, which has a significant number of hydro assets in both Australia and New Zealand, as their partner in this development phase is an important milestone and validates that the Cetus proposition resonates strongly with the target market – the owners and operators of large-scale hydroelectric facilities, worldwide.

A successful outcome will open up the multibillion-dollar Hydro electricity market, which currently accounts for over 16% of global electricity generation.  The ability of Cetus to optimise this by even a percentage point would make a significant impression on the renewable energy sector and also establish the Cetus Omni-directional blade as a significant Benchmark Technology in Renewable Energy.

The R&D on both the Cetus River Turbine and the Wave and Tidal turbine systems also continues to rapidly progress. Cetus are approaching some exciting milestones with all of these projects and hope to announce another Demonstration project within the next six months.

Cetus has now reached a significant milestone in its development. In order to support the current increasing pace of development Cetus will also be undertaking capital raising through private placement to ensure the business has additional working capital to fund this exciting growth phase.

As we continue to work closely with Cetus, we look forward being able to share further exciting news with you shortly.

AGL Energy to trial Cetus Energy Hydro Turbine System

Melbourne: March 9 2010.

Melbourne based renewable energy firm, Cetus Energy and AGL Energy Limited(AGL), one  of Australia’s  leading energy companies jointly announced today that they have signed an agreement  to scope the installation of a demonstration project at AGL’s Rubicon Valley Mountain Stream Hydro facility.

This project represents the first step toward commercialising the Cetus technology in the global Hydro Electric market. Hydro Electricity currently represents 16% of global electricity generation.

The project will involve the scoping of a demonstration device to be installed at AGL’s  Mountain Stream Hydro facility in the Rubicon Valley in Central Victoria – one of Australia’s oldest and longest running hydro facilities. The scoping will involve an analysis of the site and its suitability for a full installation of Cetus technology.

Simon Marriott Cetus CEO commented, “We are excited to be making this very positive step forward.   One part of the scoping project will be installing a small Cetus device to gather sufficient data to provide both Cetus and AGL with the confidence that the Cetus turbine technology can indeed optimise the use of water in rivers, streams and channels for the generation of renewable energy.”

Marriott went on to say “We are both encouraged and excited that AGL, one of Australia’s most successful and innovative energy companies has decided to partner with us to take this next step. Having a leading Australian business support breakthrough technology sends a strong message that renewable energy has a firm future in this country.”

Dale Blampied, AGL’s General Manager, Merchant Operations, said “Cetus approached AGL with the opportunity to be involved with the development of a turbine technology that has the potential to increase energy generation from renewable resources. AGL as Australia’s largest private provider of renewable energy is pleased to be able to support innovation that has the potential to make a significant impact on the renewable energy market.”

About Cetus Energy:

Cetus Energy (www.cetusenergy.com.au) is a Melbourne, Australia based renewable energy technology firm which has developed the world’s only Omnidirectional blade system capable of extracting energy from chaotic flow. The technology is currently being commercialised in the Hydro, Marine and run of the river environments.  Cetus turbines have the potential to improve the economics of Hydro electric power through energy recovery from outfall flows and significantly increase the ability of existing hydro facilities to produce more power from the same water resource.

About AGL:

AGL is Australia’s leading renewable energy company and is Australia’s largest private owner, operator and developer of renewable generation assets.

AGL is taking action towards creating a sustainable energy future for investors, communities and customers. AGL has major investments in hydro and wind, as well as ongoing developments in key renewable areas including solar, geothermal, biomass, biogas and landfill gas. AGL also operates retail, merchant energy and upstream gas businesses and has over three million customer accounts.

Listed on the Australian Securities Exchange (ASX code: AGK), AGL is an S&P/ASX 50 company. AGL has been operating in Australia for 170 years and was one of its first listed companies. AGL was the first Australian energy company to provide an accredited Green energy product, and was the first Australian company to join the Chicago Climate Exchange, the world’s first carbon trading exchange. In joining the CCX, AGL has committed to a 6% reduction in emissions, based on 1998/2001 levels. It is the only Australian energy company which has imposed such strict carbon limits on itself. AGL commands a pre-eminent position in preparation for a future carbon-constrained world. In little more than 12 months the company has committed to invest more than $2 billion in renewable generation and has under construction a number of wind and new hydro facilities