Environmental Power Corporation (EPGRQ)

[chuck44l]

EGP News


Environmental Power's Huckabay Ridge Facility Begins Delivery of Renewable Natural Gas to Pacific Gas & Electric Company
Monday December 22, 9:24 am ET


TARRYTOWN, N.Y., Dec. 22 /PRNewswire-FirstCall/ -- Environmental Power Corporation (Nasdaq: EPG - News), a leader in the renewable bioenergy industry, today announced that repairs and upgrades to its Huckabay Ridge facility in Stephenville, Texas, have been completed and the facility has resumed production of pipeline-quality renewable natural gas (RNG®). The company is delivering RNG® to Pacific Gas & Electric Company (PG&E) under the previously announced long-term purchase agreement that will run through December 2018. Energy production at Huckabay Ridge is ramping up and is expected to reach targeted production levels in January 2009. The company will provide periodic progress updates as we bring the facility to full production.
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"The completion of repairs and upgrades at Huckabay Ridge sets the stage for reliable commercial production of RNG®," said Rich Kessel, President and CEO of Environmental Power. "The process knowledge we have gained from operating the largest RNG® facility of its kind in the world will be invaluable as we continue to develop our pipeline of facilities in Texas, California and elsewhere."

"PG&E has established a leadership position in seeking new sources of renewable energy," continued Kessel. "We are excited to begin delivery of renewable, climate-friendly energy from Environmental Power and look forward to working with them in the coming years."

Repairs to Huckabay Ridge included upgrades to the gas conditioning equipment that converts biogas generated in the facility's eight anaerobic digestion tanks to pipeline-quality methane. The conditioning equipment principally removes carbon dioxide, water vapor and sulfur compounds to upgrade the biogas to pipeline-grade standards.

Huckabay Ridge is owned and operated by Microgy Holdings, LLC, a wholly-owned subsidiary of Environmental Power. The facility generates methane-rich biogas from manure and other organic waste, conditions the biogas to natural gas standards and distributes RNG® via a commercial pipeline.

Pursuant to the long-term purchase agreement with PG&E, PG&E has agreed to purchase up to 8,000 MMBtu of RNG® daily from Environmental Power facilities. Gas from Huckabay Ridge will be delivered to PG&E in California and the additional gas will come from facilities currently under development at dairies in California's Central Valley.

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 http://www.environmentalpower.com.

CAUTIONARY STATEMENT

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 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 project financing, 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 Public Relations Contact
Micky Thomas, Chief Financial Officer John Abrashkin
Environmental Power Corporation Ricochet Public Relations
[phone] [phone] x121
[e-mail] [e-mail]




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Source: Environmental Power Corporation