$CLIR Announces First Major Order in Flare Application

The Company Announces Significant Follow-On Order While Nearing Completion of Initial Wellhead Flare Testing

SEATTLE, Aug. 4, 2016  — ClearSign Combustion Corporation (NASDAQ: CLIR), an emerging provider of industrial combustion technologies that help to reduce emissions and improve efficiency, announced today that they have received a multi-flare contract from a major California oil producer to retrofit their enclosed wellhead ground flares with its Duplex™ technology to ensure compliance with air district emission requirements. This contract, which includes the previously disclosed initial test unit and is through the producer’s contractor, Advanced Combustion & Process Controls, Inc. (ACPC), is valued at over $1,000,000. It is expected to be completed over the next 6 to 12 months depending on the customer’s schedule.

This first major order for ClearSign comes as it nears completion of the retrofit of the customer’s high output, enclosed ground flare used for flaring wellhead gas which was originally announced in February.

While there are over one million flares associated with production wells in North America, only a small portion of these flares are currently regulated. California currently regulates flare emissions and it is expected that other states will follow over time to comply with the Clean Air Act.

The Clean Air Act, as administered by the Environmental Protection Agency (EPA), regulates six common criteria air pollutants, including ground-level ozone. These regulations are enforced by state and local air quality districts as part of their compliance plans. As a precursor to ozone, nitrogen oxide (NOx) are regulated emissions by local air quality districts. Although NOx emissions from refineries and other oil production and processing operations are highly regulated as they are historically a significant source of stationary NOx emissions, enclosed ground flares have not historically been viewed as a source requiring the same level of regulation.  However, with EPA mandated 8-hour ground-level ozone regulations being reduced from 84 ppb in 1997, to 75 ppb in 2008, and 70 ppb in 2015, we believe that local regulators are in search for other means to comply with the impending standards. ClearSign’s Duplex technology is uniquely able to address the emissions challenges being faced by the oil field /production industry.

Steve Pirnat, ClearSign Chairman and CEO, said, “We are very pleased with the excellent results to date from our installation of Duplex in an enclosed wellhead flare. The positive performance of our technology and our customer’s confidence in that technology has led to this major, new contract for additional installations. I believe that this is a seminal endorsement of Duplex from a significant oil producer.”

About ClearSign Combustion Corporation
ClearSign Combustion Corporation designs and is developing products and technologies that strive to improve key performance characteristics of combustion systems, including emissions and operational performance, energy efficiency and overall cost-effectiveness. Our patent-pending Duplex™ and Electrodynamic Combustion Control™ platform technologies enhance the performance of combustion systems in a broad range of markets, including the chemical, petrochemical, refinery, power and commercial boiler industries. For more information, please visit www.clearsign.com.

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