Environmental Power and Alcor Energy Solutions Announce CHP Based Energy Purchase Agreement for Huckabay Ridge Project
TARRYTOWN, N.Y., Aug. 12 /PRNewswire/ — Environmental Power Corporation’s (Nasdaq: EPG) wholly owned subsidiary, Microgy, Inc., a leader in the renewable bio-energy industry, and Alcor Energy Solutions, an independent energy provider that utilizes combined heat and power (CHP) technologies, today announced that they have entered into a long-term energy purchase agreement for electrical and thermal energy for use at Microgy’s Huckabay Ridge facility in Stephenville, TX.
Microgy has entered into a multi-year, fixed price energy purchase agreement with Alcor for supplying the Huckabay Ridge facility’s electrical power and thermal energy needs utilizing a CHP process. The on-site CHP system will be capable of providing all of the Huckabay Ridge facility’s electrical and thermal energy needs with the necessary back-up systems on-site so as to ensure that power and thermal energy will be reliably delivered on a continuous basis. The CHP facility is expected to be in operation during the first quarter of 2010.
“As part of our continuous effort to achieve operational efficiencies and to increase shareholder returns, this CHP solution allows us to eliminate parasitic consumption of our more valuable RNG((R)) product utilizing an efficient source of energy,” said Rich Kessel, President and CEO of Environmental Power Corporation. “The net effect will be an increase in operating margins, as we now anticipate producing sales of 782,000 MMBtu’s per year, an increase of 147,000 MMBtu’s over targeted production. The additional revenue will be complemented by reduced electrical costs for the facility, but will be partially offset by increased thermal expenses which are at a lower cost than the pricing of our RNG((R) )product under the long term PG&E contract. Alcor’s solution will allow us to continue to utilize waste heat or renewable energy for plant processes, maintaining the energy efficient/renewable aspect of our Huckabay Ridge facility.”
“Alcor is especially excited in working with a ‘green’ company such as Microgy. Microgy’s Renewable Natural Gas (RNG(R)) and waste-to-energy model has gained a lot of attention in the renewable energy market and we are glad to be a part of these efforts,” said Barry Stonehouse, President of Alcor Energy Solutions.
For Microgy, Alcor brings a unique turnkey process for supplying both power and thermal energy. Alcor’s suite of automation packages, turn-key operation and experience will allow operation of the CHP process to track increasing or decreasing facility loads either on-site or remotely. All system operations and component status can be monitored and managed from anywhere in the world.
The Huckabay Ridge facility is the largest anaerobic digester operation in the world producing an RNG(R) product for pipeline sales. Targeted production of 782,000 MMbtu’s per year translates into enough Renewable Natural Gas to heat over 13,500 Midwest homes annually. Using animal waste from local dairy farms, as well as other organic waste products, the digestion process produces biogas, which is captured and further refined to pipeline quality Renewable Natural Gas. Considered “carbon neutral”, RNG(R) is purchased by any number of customers so as to address their various renewable energy portfolio requirements and assist in their efforts to reduce carbon emissions.
ABOUT ENVIRONMENTAL POWER CORPORATION
Environmental Power Corporation is a developer, owner, and operator of renewable energy production facilities. Our principal operating subsidiary, Microgy, Inc., develops and operates proven large scale, commercial anaerobic digestion based projects which produce a versatile methane-rich biogas from livestock waste and other organic sources. For more information visit the Company’s web site at: www.environmentalpower.com
ABOUT ALCOR ENERGY SOLUTIONS, LLC
Alcor Energy Solutions is a producer of high quality, reliable, fully portable generating units capable of operating in the most remote areas of the world. Alcor Energy Solutions incorporates more than 25 years of turbine experience to build safe, reliable, cost-effective turbine-powered generating units. We offer a wide range of service options to our customers such as generator sales, service contracts, leasing and Alcor Energy Solutions owned and operated facilities. www.alcorenergysolutions.com
The Private Securities Litigation Reform Act of 1995, referred to as the PSLRA, provides a “safe harbor” for forward-looking statements. Certain statements contained in this press release, such as statements concerning financing, our planned manure-to-energy systems, our sales pipeline, our backlog, our projected sales and financial performance, statements containing the words “may,” “assumes,” “forecasts,” “positions,” “predicts,” “strategy,” “will,” “expects,” “estimates,” “anticipates,” “believes,” “projects,” “intends,” “plans,” “budgets,” “potential,” “continue,” “targets” “proposed,” and variations thereof, and other statements contained in this press release regarding matters that are not historical facts are forward-looking statements as such term is defined in the PSLRA. Because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to: uncertainties involving development-stage companies; uncertainties regarding corporate and project financing and our ability to continue as a going concern, the lack of binding commitments and/or the need to negotiate and execute definitive agreements for the construction and financing of projects, the sale of project output, the supply of substrate and other requirements and for other matters; financing and cash flow requirements and uncertainties; inexperience with the development of multi-digester projects; risks relating to fluctuations in the price of commodity fuels like natural gas, and our inexperience with managing such risks; difficulties involved in developing and executing a business plan; difficulties and uncertainties regarding acquisitions; technological uncertainties; including those relating to competing products and technologies; risks relating to managing and integrating acquired businesses; unpredictable developments; including plant outages and repair requirements; the difficulty of estimating construction, development, repair and maintenance costs and timeframes; the uncertainties involved in estimating insurance and implied warranty recoveries, if any; the inability to predict the course or outcome of any negotiations with parties involved with our projects; uncertainties relating to general economic and industry conditions, and the amount and rate of growth in expenses; uncertainties relating to government and regulatory policies and the legal environment; uncertainties relating to the availability of tax credits, deductions, rebates and similar incentives; intellectual property issues; the competitive environment in which Environmental Power Corporation and its subsidiaries operate and other factors, including those described in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, well as in other filings we make with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Company Contact Micky Thomas, Chief Financial Officer Environmental Power Corporation (914) 631-1435 firstname.lastname@example.org Company Contact Barry C. Stonehouse, President Alcor Energy Solutions, LLC (480) 917-7300 email@example.com Public Relations Contact John Abrashkin Ricochet Public Relations (212) 679-3300 x121 firstname.lastname@example.org
SOURCE Environmental Power Corporation