Gulf of Mexico Oil Drilling Platforms to Use Remote Power Systems

WAITSFIELD, Vt., May 10 /PRNewswire-FirstCall/ — Northern Power, a subsidiary of Distributed Energy Systems Corp. , has been awarded a $2.7 million contract by Instalaciones Electromecanicas, Civiles y Electricas, S.A. de C.V. (IECESA) to design, fabricate, integrate and install independent MT-Power(TM) remote power systems for two new offshore crude oil & natural gas production platforms in the Gulf of Mexico.

The new systems will supply reliable power to two new oil production platforms for the critical communications and supervisory control and data acquisition (SCADA) systems that must be functional at all times. These capabilities include radios, video, process controls, fire and gas, and emergency shutdown systems, as well as water pumps, filters and air conditioners.

The projects are part of IECESA’s work on behalf of Petroleos Mexicanos (PEMEX) — the state-owned petroleum company of Mexico. The world’s ninth largest integrated oil company, PEMEX currently operates approximately 190 platforms in the Gulf of Mexico.

Second Contract Win for Microturbine-Based System

The MT-Power systems will incorporate TA-30 and TA-60 Class 1, Division 2 (C1D2) hazardous environment microturbines from Elliott Energy Systems. The IECESA project is the second contract win for Northern Power since the launch of a formal business development relationship with Elliott. Recently, Northern Power won a $2.05 million contract to provide three PEMEX-owned platforms with MT-Power systems that will also include Elliott’s C1D2 model TA-60 microturbines.

The strategic relationship between Northern Power and Elliott, announced in March, was formed to develop specific, microturbine-based solutions for the oil and gas industry that offer higher reliability, lower overall cost, and a smaller system footprint than current land based, distributed generation alternatives.

Architecture Designed for Reliability, Ease of Installation

Each power system will include a system shelter that houses eight-hour backup batteries, controls, power conditioning and redundant HVAC environmental control systems. The microturbines will be packaged, along with C1D2 gas conditioning equipment and remote controls, onto an integrated steel skid, allowing IECESA to install the entire power generation system as a single unit, creating a minimum of interference with other platform activities. The power generation package is also designed for associated integration with all power conditioning, distribution and environmental management equipment on the platforms.

Ruben Moreno Colome, Operations Manager for IECESA, noted that the microturbine-based solution developed by Northern Power and Elliott Energy provided a new set of benefits. “We are confident that the new MT-Power systems will provide the highly reliable, critical load support we need in this hazardous environment.”

Michael Brennan, Vice President for Northern Power’s Industrial Infrastructure Group, stated: “As was the case with our 2005 contract with COMMSA, our extensive experience delivering reliable power systems to PEMEX and other remote sites was a key factor in attaining this contract. Northern Power has the tools to design and implement the optimal system for these and many other remote power applications.”

MT-Power Technology Provides Continuous Capability

MT-Power is the latest addition to Northern Power’s field-proven TelePower(TM) family of power system architectures. Fully integrated and pre- tested, the architecture uses a fossil fuel-based microturbine in a continuous-run mode as its primary source of power generation, with multiple microturbines included for redundancy and capacity. The systems are therefore ideal for platform applications like those at Activo Integral KU-MALOOB-ZAAP, which require maximization of electric power reliability in a Class 1, Division 2 (C1D2) hazardous environment, and a minimum of maintenance and operating down time.

About IECESA

Founded in 1998, IECESA (Instalaciones Electromecanicas, Civiles y Electricas S.A. de C.V.) is a systems integration service company based in Cd. del Carmen, Campeche, Mexico. Having acquired ISO 9001:2000 certification in 2005, IECESA’s in house services range from front-end design to system fabrication and integration to field construction, installation and commissioning of mechanical, electromechanical, instrumentation and control systems for both offshore and onshore Oil & Gas markets.

About Northern Power

Northern Power, designs, builds and installs reliable power solutions for commercial, industrial, government, and military customers. The company also conducts research and development in the areas of renewable energy, distributed generation and hydrogen technology. Northern Power was founded in 1974 and employs 210 people with turnkey design, engineering, construction, and customer-support capabilities. Northern Power is a wholly owned operating unit of Distributed Energy Systems Corp. For more information, visit http://www.northernpower.com/.

About Distributed Energy Systems Corp.

Distributed Energy Systems Corp. creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality, and reliability. As the parent company of Proton Energy Systems, Inc. (http://www.protonenergy.com/) and Northern Power Systems, Inc., Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information, visit http://www.distributed-energy.com/.

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. Without limiting the foregoing, words such as “anticipates,”"believes,”"could,”"estimate”"expect,”"intend,”"may,”"might,”"should,”"will” and “would” and other forms of these words or similar words are intended to identify forward-looking information. Northern’s and Distributed Energy’s actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Northern Power Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements.

Factors that could cause results to differ materially from those contained in Northern’s and Distributed Energy’s forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems, and other factors detailed in Distributed Energy’s Form 10-K for the year ended December 31, 2005, and other filings Distributed Energy may make from time to time with the SEC.

Distributed Energy Systems Corp.

CONTACT: Amy Klinger of Northern Power, +1-802-496-2955, ext. 7289,aklinger@northernpower.com

Web site: http://www.northernpower.com/http://www.protonenergy.com/http://www.distributed-energy.com/