News Release
WEDNESDAY 23RD MAY 2007

GAS PRESSURE IN NATIONAL GRID’S PIPELINES TO BE USED TO
GENERATE RENEWABLE ENERGY

• National Grid and 2OC to use innovative geo-pressure technology to tackle climate change
• Pilot schemes agreed that could generate over 45MW
• Moves National Grid towards its target of sourcing all its internal electricity needs from renewable sources by 2010

National Grid and geo-pressure energy company 2OC have today announced an agreement
to form a joint venture that will use innovative technology to generate renewable electricity
from natural gas pressure in the pipe network.

The joint venture between National Grid and 2OC will build pilot projects to generate
electricity at two of National Grid’s gas pressure reduction stations, with the potential for work
to start on six further sites in spring 2008. Initial investment for the first eight sites would be
between £50 and £60 million, and the first two projects could potentially be at Beckton near
the proposed Olympic complex and at Fulham. Construction is expected to begin in the first
quarter of 2008 and the sites will be producing renewable power in early 2009. All eight
sites, once up and running, could provide National Grid with all its internal electricity needs.
National Grid Chief Executive, Steve Holliday, said, “It’s clear that for society to tackle
climate change – and for us as a company to reduce our carbon footprint – we need to start
thinking of new ways to meet our energy needs.

“As a company, we have already reduced our emissions by 35%, beating the Kyoto 2012
target of 12.5 per cent emissions reduction for the UK and we are on target to reduce
emissions from our operations and offices across the company by 60 per cent well before
2050. Today’s agreement with 2OC is a great step forward and will help us meet all our
internal energy needs from renewable sources by 2010.”

Natural gas is driven through the pipe network under pressure, which must be reduced by a
pressure reduction station before being safely delivered to homes and businesses. By
installing a turbine generation system at some of these stations, the energy created by
reducing the pressure can be harnessed and used to generate renewable electricity.

Andrew Mercer, Chief Executive of 2OC said, “With this agreement we hope to make a real
difference to the way the world thinks about exploiting the many sources of clean, renewable
energy that exist today. We are excited about working with National Grid to enable them to
meet their internal energy needs from renewable sources and reduce their carbon footprint.
Showing leadership in the fight against climate change and being passionate about finding
new sources of clean energy are core values of 2OC.”

It is expected that each of the pilot installations will generate between 5 and 13MW of
electricity and whilst the actual generation capacity will depend on the characteristics of the
site, a feasibility study has indicated that renewable energy could be generated at around
200 of National Grid’s sites.

John Sauven, Director of Greenpeace UK said, “If we are to solve the problem of climate
change we cannot afford to leave any stone unturned in the hunt for solutions. The work
done by 20C in developing geo-pressure shows the potential for finding clean, renewable
sources of energy and we’re delighted with National Grid’s commitment to this project.
Greenpeace believes that this renewable resource can become an important part of a new
energy system that will help tackle the problems of climate change and energy security."

-ENDS

Media Enquiries:

National Grid
Chris Mostyn – 01926 655275 / M: 07879 668025
Stewart Larque – 01926 655274 / M: 07831 864034

2OC
Kate Hill, Gavin Anderson & Company - 020 7554 1400
Ken Cronin, Gavin Anderson & Company – 020 7554 1400

National Grid
National Grid is one of the world's largest utilities, focused on delivering energy safely,
reliably, efficiently and responsibly. Our principal interests are in the transmission and
distribution of electricity and gas in the UK and US.

We own the high-voltage electricity system in England and Wales and operate the system
across Great Britain. We also own and operate the high pressure gas transmission system
in Britain, and the country’s largest gas distribution network serving 11 million customers.
In the Northeastern US we have electricity transmission systems and distribution
networks in the northeastern region, and gas customers in upstate New York and Rhode
Island. In early 2006 we announced the acquisition of KeySpan, the largest gas
distribution company in the Northeast US. Completion is expected in mid-2007.

We also have interests in related markets, including metering services, liquefied natural gas
facilities and property in the UK, as well as electricity interconnectors in the UK and US. More
information is available at www.nationalgrid.com
National Grid photography can be found at www.newscast.co.uk.

20C
20C is the only supplier, owner and operator of completely integrated lifecycle-managed geopressure systems for generating carbon-free electricity. Its technology captures the energy
given off as natural gas pressure is reduced at pressure reduction stations across the
country and uses it to produce green electricity.

Because it’s not using the gas, but the geo-pressure of the gas, to produce power, it’s a
renewable source. 20C provides a commercial, innovative way to use an existing renewable
resource to bridge to a sustainable energy future.

www.2oc.co.uk

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