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PORTSMOUTH, N.H., July 11, 2002 -- Environmental Power Corp., a provider of environmental solutions and renewable energy, announced that it has signed letters of intent with six farms in the Green Bay area of Wisconsin to build an anaerobic digester system on each site.
The systems, which will provide a profit-generating solution to environmental issues associated with animal waste and provide peak electric power to Wisconsin Public Service Corporation, are expected to be operational by August 2003.
Environmental Power recently obtained the exclusive North American license for a highly efficient anaerobic digestion technology - a method of producing renewable energy generated by methane gas extracted from animal wastes - through its acquisition of Microgy Cogeneration Systems, Inc., now a company subsidiary. The methane will be used to produce approximately 10 megawatts of peak power at electric generating facilities to be constructed on the farms and operated by Environmental Power.
Signing of the letters of intent is the second major step in bringing the systems online. The company already has signed a 15-year agreement to provide peak power to Wisconsin Public Service Corporation. The facilities to be constructed on the farms will generate an estimated two-thirds of the electricity required under the contract. Company officials expect additional farms to sign on in the near future, providing the remainder of the power required under the contract.
The letters of intent signed by the farms are conditioned on their completion of technical due diligence and project financing. The engineering and construction phase of the project are expected to begin immediately after those steps are completed.
"The fact that these farms have signed on so quickly to use our technology demonstrates both the urgency farmers place on the resolution of this serious environmental issue and the desirability of the solution offered by Environmental Power," said Donald A. Livingston, president and chief operating officer of Microgy.
"Rather than incurring significant costs to address the problem, farmers can actually add to their bottom lines. It is another important step in the process of realizing our mission to produce renewable energy from animal wastes while helping control water and air pollution stemming from animal feeding operations and addressing the nation's need for renewable green power that is both reliable and cost efficient."
Environmental Power's anaerobic digestion systems will help animal feeding operations meet Environmental Protection Agency and U.S. Department of Agriculture pollution standards. These agencies have identified animal feeding operations as the greatest contributors to the problem of excess mineral pollutants in water runoff, the most significant remaining source of water pollution.
In addition to required anti-pollution measures, many states are requiring that a certain percentage of total power sold come from renewable sources. In Wisconsin, for example, regulated utilities are required to have 2.2 percent of total power generated come from renewable resources by 2012.
Among states with similar requirements are Arizona, Nevada, New York and Texas. Other states, such as California, offer considerable financial incentives in support of renewable energy.
Environmental Power is targeting its proposed anaerobic digestions systems to animal feeding operations in the U.S. and estimates market potential for this type of pollution control to exceed $14 billion.
About Environmental Power Corp.
Environmental Power Corp. is an entrepreneurial energy company established in 1982 with annual revenues in excess of $50 million. The company focuses on environmentally sound power generation, including waste coal, anaerobic digestion, biomass, and distributed generation.
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