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Press Release

Sweden Opens First Hydrogen Fueling Station

Malmo, Sweden, September 11, 2003 - Sydkraft, a major energy company in Northern Europe, officially unveiled Sweden’s first hydrogen fueling station in Malmo, Sweden. The Hydrogen Energy Station (HES), supplied by Stuart Energy Systems Corporation (TSX:HHO), provides both pure hydrogen and a blend of hydrogen and natural gas fuel. Sydkraft currently supplies natural gas fuel to the City of Malmo’s entire bus fleet and intends to use the HES system to evaluate the technical, environmental and economic benefits of using a hydrogen/natural gas blended fuel.

"As the unit responsible for Sydkraft's investment in gas-based fuels, it is naturally gratifying to be able to realize our vision for natural gas as a bridge toward a renewable energy gas system," says Per Lindell, President of Sydkraft Gas AB. "Through our various programs we can now demonstrate, as one of the first energy market players, that it is possible to establish a long-term and sustainable bridge that contains natural gas, biogas and hydrogen gas."

At the opening event, Mr. Jon Slangerup, President and CEO of Stuart Energy remarked, “We are very excited to be part of this historic event in Sweden. The opening of this station marks the beginning of a hydrogen economy in Sweden, with Sydkraft and the City of Malmo at the forefront of this movement. Blending hydrogen with natural gas enables city buses to run cleaner; we see this as an excellent first step in establishing a viable pathway to using zero emission hydrogen fuel and eliminating emissions completely.”

The Stuart Energy HES installed for Sydkraft is comprised of four modules: water electrolysis-based hydrogen generation, compression, storage and a natural gas/hydrogen dispenser and will produce about 80kg of high-purity hydrogen per day. A feature of this station is the ability of the dispenser to variably mix hydrogen and natural gas into a blended fuel. Emission reductions are achieved by supplanting the carbon in natural gas with clean hydrogen. In addition, vehicles consume less fuel and can travel further by blending hydrogen in natural gas.

Stuart Energy and its subsidiary Vandenborre are focused on the European market for hydrogen infrastructure. In addition to this project, the company is providing HES hydrogen infrastructure to the cities of Stockholm, Barcelona, Amsterdam and Porto as part of the Clean Urban Transportation Europe (CUTE) program.

About Stuart Energy
Stuart Energy Systems Corporation (TSX: HHO) is a world leading developer and supplier of integrated hydrogen solutions that use the Company’s proprietary hydrogen generation water electrolysis technology with products from corporate partners to serve existing and emerging markets for power generation, transportation and industry. The Company’s website address is http://www.stuartenergy.com

This release includes forward -looking statements, which are based on certain assumptions and reflect management's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward -looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify, develop and achieve commercial success for new products, services and technologies; the level of expenditures necessary to maintain or improve the quality of products and services; changes in technology; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; the uncertainties of the emerging hydrogen economy, including the hydrogen economy growing at a slower pace than is anticipated; our ability to secure and maintain strategic relationships; the availability of, and ability to retain, key personnel; and the failure of the Company to effectively integrate acquisitions. Additional factors are discussed in our materials filed with the securities regulatory authorities from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


For more information, please contact:

Stuart Energy Media and Public Relations
Wanda Cutler

Stuart Energy Investor Relations
Robert McGillivray


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