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Low Carbon Accelerator Makes Further Investment

into Responsive Load Ltd

Low Carbon Accelerator (“LCA” or the “Company”) announces it has made a further equity investment of £300,000 in ResponsiveLoad Ltd (trading as RLtec), following the achievement of the certain milestones set out by LCA on 8 October 2008. These include gaining approval from Ofgem for a demonstration action under the Carbon Emission Reduction Target (CERTs) scheme comprising a trial of RLtec equipped fridges, and to have signed their first significant commercial contract with npower to supply them with carbon savings towards their CERTs obligations.

Following this investment LCA now holds an 83% equity stake in RLtec.

RLtec has developed smart grid-management technology to increase the energy efficiency of the whole electricity supply chain, from white goods and appliances through to large scale power generators.

Appliances such as fridges and air conditioning systems can be fitted with RLtec's Dynamic Demand technology to automatically modify their power consumption in response to second-by-second changes in the balance between supply and demand on the grid – without affecting performance. The technology has the potential to create a 'virtual' power station and if widely used in the UK could eliminate the need for carbon emitting coal-fired balancing stations and save up to 2 million tonnes of carbon dioxide per year.

Dr Stephen Mahon, Chief Investment Officer for LCA and Board Member of RLtec said: “RLtec has made excellent commercial and technical progress in the last year and the industry has realised the enormous potential for energy and carbon savings that it can bring. It gained approval from Ofgem to run a trial of dynamic demand equipped fridges with the major utility company, npower, under the UK's Carbon Emissions Reduction Target (CERTs) programme. It is also trialling its product with the large retailer, Sainsbury, and working with National Grid defining contractual frameworks and test strategies for load-balancing services. These will provide RLtec will a route to recurring revenues from grid based balancing services.

Our investment model is to deliver shareholder value and make real carbon savings. Low Carbon Investors, the investment manager for LCA, has supported RLtec since seed stage. Working closely with the management team, we have taken the company from scientific concept to commercial reality. The need to improve electricity grids is driving strong demand for smart grid technologies globally and we believe RLtec is well positioned to be a key player in this high growth sector.”

Dynamic Demand technology was also examined in detail in a report published in December 2008 by the Department of Energy and Climate Change called: “The Potential of Dynamic Demand”. The UK Government has recognised the benefits of using dynamic demand, which could include 2,000,000 tonnes of reduced carbon emissions, assisting with integration of the 35GW of renewable generation on the grid and reduced risk of black-outs.

Transmission grids throughout the world are experiencing problems as greater demand and more variable renewable generation output increase instability. Most grid operators are now looking for Smart Grid technologies which can offer a solution. In the UK alone, the size of the market for grid balancing services has increased in 2008 to £770m, ~40% over the size forecast and is budgeted to be ~£950m next year. Renewable generation integration will very significantly increase this balancing service volumes, and UK Government reports indicate a range of 2 to 8 times growth by 2020.

About Low Carbon Accelerator:

Low Carbon Accelerator Limited is a closed ended investment company created to invest in a portfolio of fast-growing low carbon businesses. The Company listed on the AIM Market of the London Stock Exchange on 11 October 2006, raising £44.5 million.

The Company's investment objective is to provide shareholders with an attractive return on their investment primarily through significant minority (predominately 25% and above) holdings in a diverse portfolio of unquoted private companies providing low carbon products and services.

The Company invests principally across the following sectors:

Buildings (sustainable building materials, heating, lighting, clean air and water technologies for industrial, commercial and/or residential use)
Fuels (bio-fuels, low carbon fuels, catalysts and additives)

Energy efficiency (reductions in energy inputs at source, improved conversion and reductions at point of use)
Energy generation (sustainable and clean energy, micro and distributed generation)

The Company's investment strategy is to
target trading businesses with patentable technologies and products with a clear commercial application and the opportunity to gain a large market share of a new or expanding market. The Company focuses on businesses with experienced management teams who have developed commercially viable products providing easily adoptable solutions which deliver immediate reductions in carbon dioxide emissions.

For more information please visit: www.lowcarbonaccelerator.com

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