QAR Questair Tech

RNS Number:1411N
QuestAir Technologies Inc
04 December 2006


Immediate Release                                               4 December 2006

                   QuestAir installs methane recovery system

                             at Michigan Dairy Farm


BURNABY, B.C. - QuestAir Technologies Inc. (AIM: QAR; TSX: QAR) announced today
that that it has successfully installed a M-3200 system to recover pipeline
grade methane generated from animal waste at the Scenic View Dairy in Fennville,
Michigan.

QuestAir's M-3200 system was purchased by Phase 3 Developments & Investments,
LLC, a developer of renewable energy projects in the agricultural sector, as
part of a plant that generates pipeline-grade methane as well as electrical
power from anaerobic digester gas. Product methane from the plant will be
injected into the local natural gas distribution grid operated by Michigan Gas
Utilities, a natural gas utility serving 162,000 customers in southern Michigan.
The plant is expected to be fully operational during the first quarter of 2007.

Jonathan Wilkinson, QuestAir's President and CEO, said: "We are very excited to
be involved in this landmark project, which we believe is the first commercial
facility in North America to generate both pipeline-grade methane and
electricity from animal waste. Over 1.4 billion tons of manure and other organic
wastes are produced by the agricultural industry in the US each year, creating
significant environmental and waste disposal challenges."

"Anaerobic digestion systems, such as the one used in this project, offer the
potential to not only produce renewable energy from these wastes, but also to
produce environmentally friendly biofibers and liquid organic fertilizers that
can be sustainably reused in the agricultural sector," said Wilkinson.

Norma McDonald, Operating Manager of Phase 3, said: "We selected the QuestAir
system because of its low operational and maintenance costs. We also like the
compact, skid-mounted nature of QuestAir's M-3200, since it reduces the project
owner's capital costs and leaves room for additional value-added process
equipment."

Constructed in the fall of 2006, the new facility at the Scenic View Dairy will
generate methane-containing biogas from the anaerobic digestion of approximately
25 million gallons per year of manure, as well organic wastes from biodiesel and
bioethanol plants located near the dairy. Electrical power and pipeline-grade
methane from the anaerobic digester will be used to meet the total energy needs
of the Scenic View Dairy, with the excess being sold to third party customers.
The digester will also produce Class A biosolids and liquid organic fertilizer.

Energy Recovery from Anaerobic Digester Gas:

   * Anaerobic digesters are biological systems that decompose organic
    wastes, including animal manure and municipal sewerage, producing anaerobic
    digester gas ("ADG") and digested biofibers. ADG typically contains between
    50 and 60% methane, with the balance primarily carbon dioxide.
   * In the US, there are approximately 100 farm-scale anaerobic digesters
    processing agricultural waste. The US Environmental Protection Agency
    estimates that anaerobic digesters could be cost effectively installed at a
    further 6,900 farms across the US, producing up to 6,000 GWh per year of
    energy from ADG.
   * In Europe there are more than 3,000 farm-scale anaerobic digesters
    processing agricultural wastes, and 200 centralized digesters processing
    municipal sewerage. In most cases the methane-containing biogas from these
    installations is combusted to produce electrical power and/or heat. In 2005,
    total energy production from ADG in the European Union was estimated at
    20,000 GWh, or approximately 0.8% of total electricity consumption in the
    EU. Energy production from the anaerobic digestion of agricultural waste
    grew by 58% in the EU from 2004 to 2005.
   * The recovery of high-purity methane is emerging as a cost effective
    alternative to generating electrical power and/or heat from ADG. Methane
    recovered from ADG can either be injected into the existing natural gas
    distribution network, or used as a transportation fuel such as compressed
    natural gas or liquefied natural gas. There are currently over 25 plants
    producing high purity methane from ADG in Europe.


About QuestAir M-3200

QuestAir's M-3200 purifies methane-containing gas streams such as landfill gas
and anaerobic digester gas to high purity methane, suitable for supplementing
existing natural gas supplies. The M-3200's optimized Pressure Swing Adsorption
("PSA") process and proprietary rotary valve technology deliver higher
efficiency than conventional PSA systems in a more compact, cost effective
package. QuestAir's M-3200 system can upgrade up to 300,000 cubic feet of biogas
per day.


About QuestAir Technologies Inc.

QuestAir Technologies, Inc. is a developer and supplier of proprietary gas
purification systems for several large international markets, including existing
markets such as oil refining, biogas production and natural gas processing, and
emerging markets such as fuel cell power plants and fuel cell vehicle refueling
stations. QuestAir is based in Burnaby, British Columbia and its shares trade on
the AIM Market of the London Stock Exchange Plc. and on the Toronto Stock
Exchange under the symbol "QAR".


About Phase 3 Developments & Investments, LLC

PHASE 3 DEVELOPMENTS & INVESTMENTS LLC provides services to agricultural
customers related to renewable energy and bio-based products. Services include
financing and grant application preparation, business and technical feasibility
studies, marketing of renewable energy and bio-based products, including
emission credits. As a project developer, PHASE 3 DEVELOPMENTS & INVESTMENTS LLC
assists clients in the selection of vendors, equipment procurement, as well as
the associated mechanical, electrical and controls engineering required to
integrate individual pieces of purchased equipment or equipment modules. Clients
may also benefit from PHASE 3 DEVELOPMENTS & INVESTMENTS LLC's construction
project management and commissioning services, including coordination with
permitting agencies. PHASE 3 DEVELOPMENTS & INVESTMENTS LLC is a registered Ohio
company, and qualifies as a small, women and veteran-owned business.


Forward Looking Statements

Certain statements in this press release may constitute ''forward-looking''
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, such statements use
such words as "anticipate", "believe", "plan", "estimate", "expect", "intend",
''may'', ''will'' and other similar terminology. These statements reflect
current expectations regarding future events and operating performance and speak
only as of the date of this press release. Forward-looking statements involve
significant risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or not such results will be achieved. A number of factors could cause
actual results to differ materially from the results discussed in the
forward-looking statements.


Contact Information:

QuestAir Technologies Inc.                Phase 3 Developments & Investments LLC
Andrew Hall                               Norma McDonald
Director, Corporate Development           Operating Manager
Phone: (001) 604-453-6967                 Phone: (001) 513-265-2758
Email: hall@questairinc.com
Web: www.questairinc.com

UK media contact:                         Canadian media contact:
Charles Ryland                            Glen Edwards
Ben Willey                                Karyo Communications
Buchanan Communications                   Phone: (001) 604-623-3007
Phone: +44 (0) 20 7466 5000

Canaccord Adams:
Mark Ashurst
Erin Needra
Phone: +44 207 050 6500




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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