W2 Energy Inc. Completes Installation of Its Coal Slurry Processor at the Guelph Ontario Plant

GUELPH, Ontario, Dec. 12, 2012 /PRNewswire/ -- W2 Energy Inc. (OTC: WTWO) is pleased to announce the installation of its coal slurry processor for their plant located in Guelph, Ontario.

W2's newest addition is a 1.5 ton per hour coal slurry processor. The intent of the processor is to generate immediate revenue by producing coal slurries as a substitute for No. 6 fuel oil commonly known as "Bunker Fuel." W2 Energy's coal slurries can be directly used in boilers that use bunker fuel as feedstock at a fraction of the cost of No. 6 fuel oil. The processor will also be capable of producing coal fuels that are replacements for No. 2 fuel oil or "heating oil" and a suite of other products. Initially, W2's two main revenue producing products will be focused on bunker fuel and heating oil replacements. Plans are for W2 Energy to produce a COF (Coal Oil Fuel) that will use a combination of biodiesel and coal that will be a direct replacement for heating oil at 50% of the cost. Additionally, the fuel and heating oil will have a 30% bio-renewable factor in it which will allow for renewable credits.

Once a suitable coal has been selected and its properties evaluated for a known site with given boiler design characteristics, CWO (Coal, Water, Oil) fuel process design can be carried out relatively rapidly. The most important question is whether fuel preparation will be carried out on site or the fuel has to be transported to the site for use. As our proposed equipment is relatively small in size compared to other approaches, it can likely be fitted in close to the combustion site, for significant savings in avoided transportation and piping costs.

Michael McLaren, CEO of W2 Energy, stated, "When we first began to build our coal slurry processor we never realized there would be a significant market for this product. Initially, we intended to use this product as our feedstock for the NT Plasmatron. Being in Canada, most heating and other power generation is done with natural gas which is cheap and abundant here. However, this is not the case in densely populated areas throughout the world.  Many countries still rely very heavily on fuel oil for heat and power generation." He also stated, "Since our fuel replacement is processed using an agglomeration method, our fuel is virtually free of ash and sulphur as well as other contaminants. This makes for a very desirable market. We are already in discussions for the production of our coal slurry in several specific geographical regions. Our coal slurry processor has recently produced several batches of product which has been sent out for independent testing."

Bunker Fuel and Classes of Oil:

http://en.wikipedia.org/wiki/Fuel_oil

Current Bunker Oil Price Index:

http://www.bunkerworld.com/prices/

About W2 Energy:

W2 Energy Inc. develops renewable energy technologies and applies it to new generation power systems. Specifically, W2 Energy's plasma assisted biomass to energy plants utilize state of the art technologies to produce green energy both fuel (sulfur free diesel) and electricity at the most efficient cost in capital investment and production per/barrel, per/Megawatt. W2 Energy Inc. has seasoned management, cutting edge technology and owns a large technology portfolio of patents and know-how that has been extensively validated and ready for commercial production.

For more information on W2 Energy please see: www.w2energy.com

Safe Harbor

This release contains statements that constitute 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. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of W2 Energy Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond W2 Energy Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in W2 Energy Inc.'s filings with the Securities and Exchange Commission.

For further information please contact:

W2 Energy Public Relations and Shareholder Information

Mr. Joseph Vazquez

Phone: (754) 204-4549

Email: [email protected]

SOURCE W2 Energy Inc.