APS Effort to Reduce Greenhouse Gases Receives International Accolades.

PHOENIX -- Arizona Public Service Company and its partner GreenFuel Technologies were recognized with the Emissions Energy Project of the Year award at the 8th Annual Platts Global Energy Awards held last night in New York. The two companies were recognized for their work using carbon dioxide (CO2) emissions to create reusable biodiesel and ethanol fuel at APS' Redhawk Power Plant, located about 50 miles west of Phoenix.

GreenFuel's Emissions-to-Biofuels[TM] technology uses safe, naturally occurring algae to recycle carbon dioxide emissions from the Redhawk plant, thereby reducing the amount of CO2 dispersed into the air. Carbon Dioxide is recognized by scientists as a leading contributor of environmental greenhouse gases.

The emissions to biofuels project addresses two important issues in the U.S. today Co reducing greenhouse gas emissions at power plants and producing more domestic sources of alternative fuels for automobiles and power plants. Theoretically, this is the first step in creating a self-sustaining renewable energy system for producing electricity.

"APS is committed to developing environmentally sustainable business practices that meet the electricity needs of our customers," said Ed Fox, APS' Vice President of Communications, Environment and Safety. "We're honored to be recognized for our efforts to bring new clean renewable technologies into the mainstream of the electric utility business."

At Redhawk, the CO2 emissions are trapped and transferred to specialized containers holding hungry algae. In the presence of sunlight, the algae consume the CO2 and multiply. Once enough algae is grown, it is harvested, and its starches turned into ethanol; its lipids into biodiesel; and its protein into high-grade food for livestock or to be returned to the algae farm as nutrients. Nothing goes to waste... and the environment benefits from reduced pollutants. It is estimated that for every acre of algae grown on the plant site, up to 150 tons of CO2 can be absorbed Co the greatest ever achieved outside of a laboratory.

"We estimate that this process can absorb as much as 80 percent of CO2 emissions during the daytime at a natural gas fired power plant," said GreenFuel CEO Cary Bullock.

While feeding CO2 from a power plant to grow algae is not new, turning the algae grown at a power plant into biodiesel and ethanol is ground-breaking. The APS Redhawk project marks the first time ever that algae biomass created on-site by direct connection to a commercial power plant has been successfully converted to transportation-grade biofuels.

The Global Energy Awards recognizes excellence and innovation by companies and executives in more than a dozen sectors within the global energy industry.

According to Platts, they received more than 200 nominations this year from energy companies around the world, and the finalists and winners in 17 categories exemplify the spirit of innovation and an enduring commitment to employees, customers, shareholders, the environment, and the energy industry as a whole.

The Global Energy Awards are judged by an international panel of energy industry experts and veterans Co including former and current top corporate executives, regulators, leading academics, government advisors and seasoned editors.

APS' Saguaro Solar Power Plant, the first solar trough generator in the state and the first solar trough built in the United States in almost 20 years, was a finalist in the Global Energy Project of the Year award category. The plant is located near Red Rock, Ariz.

GreenFuel Technologies Corporation is the leading developer of systems for recycling rich CO2 streams from power and/or manufacturing plant flue gases to produce biofuels such as biodiesel, ethanol or methane. The company, which was founded in 2001, is headquartered in Cambridge, Massachusetts. For more information, visit www.greenfuelonline.com.

APS, Arizona's largest and longest-serving electricity utility, serves more than 1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corp. (NYSE: PNW)