Energy Recovery (ERII) PX Devices Implemented in World’s First Osmotic Power Plant

Dec. 3, 2009 (Business Wire) — Energy Recovery, Inc. (NASDAQ:ERII), a leader in the design and development of energy recovery devices for desalination, today announced that its industry-leading PX Pressure Exchanger® energy recovery devices are implemented at the world’s first osmotic power plant. Built in Tofte, Norway, by leading Norwegian energy company Statkraft, the pilot plant showcases how the energy created through osmosis can be harnessed to generate a continuous source of renewable electricity. The high efficiency of Energy Recovery’s PX devices increase the energy output and reduce the energy consumed during the osmotic power generation process to ensure the net-positive production of electricity.

“The commissioning of our pilot facility is a significant step toward the commercialization of this game-changing renewable energy source. According to our calculations, the global production potential of osmotic power could exceed 1,600 terawatt hours, or the equivalent of half of Europe’s entire energy demand,” said Stein Erik Skilhagan, vice president of osmotic power at Statkraft. “Although osmotic power has enormous potential, it is only economically feasible if you reduce the cost of creating it. Energy Recovery’s PX devices address this issue by considerably reducing energy use, allowing us to produce renewable electricity. We anticipate that the pilot plant will be quite successful and plan to implement the PX technology as we scale up to a commercial facility.”

Energy Recovery’s PX devices are currently deployed at large seawater reverse osmosis (SWRO) desalination plants all over the world. By recycling the energy typically wasted as part of the reject stream, the PX devices—which operate at 98 percent efficiency—reduce energy use by up to 60 percent, helping to make desalination an affordable solution to global water scarcity. Energy Recovery’s devices function on a similar principle in osmotic power processes.

The osmotic power process harnesses the osmotic potential difference between saltwater (such as seawater) and freshwater to produce a pressurized stream of membrane permeate. Diluted saltwater is released through a turbine that turns a generator to produce electricity. The PX devices work in unison with next-generation forward osmosis membranes to cost-effectively enable stable, reliable, environmentally friendly energy production anywhere that both freshwater and saltwater are available. The pilot plant in Tofte, Norway is designed to produce 10 kW of renewable energy, and by 2015, Statkraft plans to build a full-scale osmotic power plant capable of producing 25 MW of electricity.

“The ability to harness osmosis and turn it into a continuous supply of clean, renewable energy is an extremely important accomplishment for humanity and the environment. We applaud Statkraft on opening the pilot facility as a major milestone for osmotic power,” said Rick Stover, CTO of Energy Recovery, Inc. “We look forward to further developments in osmotic power technology, which could potentially use any saltwater or solution with a high osmotic potential to generate electricity. In every case, PX energy recovery devices will be an essential component, maintaining high osmotic pressure and maximizing net power output through high-efficiency performance. We look forward to playing an important role as osmotic power evolves as a significant source of global energy.”

About ERI

Energy Recovery, Inc. (NASDAQ:ERII) designs and develops energy recovery devices that help make desalination affordable by significantly reducing energy consumption. ERI’s PX Pressure Exchanger™ (PX™) device is a rotary positive displacement pump that recovers energy from the high pressure reject stream of seawater reverse osmosis systems at up to 98% efficiency. With more than 7,000 PX devices deployed or under contract to be installed in desalination plants across the globe, ERI’s technology has set the industry standard for energy recovery devices for desalination. The company is headquartered in the San Francisco Bay Area with offices in key desalination centers worldwide, including Madrid, Shanghai, Florida and the United Arab Emirates. For more information on ERI and PX technology, please visit www.energyrecovery.com.

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements about the market potential for ERI’s products in emerging osmotic power applications. Because such forward-looking statements involve risks and uncertainties, including the risk that the potential for osmotic power generation and the resulting increase in demand for ERI’s products may not be realized, the Company’s actual results may differ materially from those suggested by the forward-looking statements. All forward-looking statements are made as of today, and the Company assumes no obligation to update such statements. For more details relating to the risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, please refer to the Company’s SEC filings.