Enerji Limited (ASX:ERJ) Company Update on Company Activities

Perth, July 1, 2011 AEST (ABN Newswire) - Emerging green energy utility, Enerji Limited (ASX:ERJ) is pleased to provide an update on its activities.

Enerji has made a further payment to Opcon (STO:OPCO) for the first Opcon Powerbox destined for Horizon Power's Carnarvon powerstation. One further payment is due on this first unit, which is scheduled to be shipped from Sweden to Australia in mid August. This payment ensures the Powerbox will ship on schedule for installation and commissioning in Carnarvon.

The Company has now made payments totalling A$5.1 million out of a total commitment of A$9M for the first 6 Opcon Powerboxes. This recent payment is a significant milestone in the Company's initial six-box roll-out strategy for the Australian energy market where Enerji is targeting anywhere up to 300 remote sites with multi-box potential.

The Company's senior engineer was in Sweden last week for technical and project related discussions with Opcon and to witness some factory testing of the first Opcon Powerbox.

Greg Pennefather, Enerji's Managing Director, said the Company was well on-track to maintain the installation timeline as announced in May.

"Given what I saw when I was in Sweden in late April and what our senior engineer saw last week, we are very confident that the first Powerbox will ship in mid August as per our announcement in mid May," said Mr Pennefather.

Shipping is estimated to take 6 - 8 weeks which should see the first unit arrive in Australia in late September or early October.

The Company is pleased to provide some photographs of its first 2 Opcon Powerboxes being built (at the end of this announcement) taken last week by Enerji's senior engineer. These pictures show completed mechanical works and electrical and control cabinets being installed.

An important part of Enerji's senior engineer's discussions with Opcon revolved around the compliance documentation required to register the Opcon Powerbox for operation in Western Australia. The documentation inspected is in order and, once the first unit is completed, it will be submitted to Worksafe for registration. The designs of the major pressure vessels in the Opcon Powerbox have already been verified and registered with Worksafe and should only require a physical inspection to confirm correct dimensions once it arrives in Australia.

"Having design verification registration complete for the major pressure vessels and the manufacturing documentation in order before the Powerbox has even left the factory is a substantial advance by Enerji's engineers and Opcon's fabrication team" Mr Pennefather said.

"This vital administrative work should see a smooth path for registration of the Powerbox when it arrives".

Enerji's operational focus is currently on two key business objectives - implementation of the waste heat recovery system at Horizon Power's Carnarvon powerstation and growing the sales pipeline and firming up those prospects already in it. To this end the Company has specified and placed orders for some long lead time items for the Carnarvon project including heat exchangers from Airec and the hot and cold water circuit pumps. Work on the detailed design for the system continues.

The Company has also been active on the sales front with a number of proposals submitted to highly prospective customers and engaging with further prospects to grow the sales pipeline. The sales cycle for Enerji's waste heat recovery service is long but the Company is confident that further customer agreements will be reached and announced during the September quarter if not before. Enerji's Chairman, The Hon. Ian Campbell former Federal Environment Minister, is also assisting significantly in discussions with prospective customers.

"We are moving closer to closing a number of sales deals" said Mr Pennefather, "we can't disclose who we're talking to for commercial confidentiality reasons but shareholders will be delighted should we secure the PPAs we're currently working on".

Contact

Greg Pennefather Enerji Limited Tel: +61-8-9268-3800 http://www.enerji.com.au