Environmental Power’s Renewable Gas Facility Developments

Environmental Power Corporation announced that its Microgy, Inc. subsidiary has executed definitive lease and manure handling agreements with several California dairies for the development of renewable gas facilities.

At full operation these facilities are expected to generate approximately 8000 mcf/day of RNG, an amount sufficient to fulfill Microgy’s saleable gas rights under a recently announced long-term purchase contract with Pacific Gas & Electric (PG&E). RNG is Microgy’s branded, renewable, pipeline-quality methane product. In an earlier announcement, Swift & Company, processor of fresh beef and pork products, and Environmental Power Corporation signed binding agreements regarding a renewable gas facility at Swift’s beef processing plant in Grand Island, Nebraska. Under the terms of the agreements Environmental Power’s subsidiary Microgy, Inc. will construct, own and operate the gas production facility and sell its gas to Swift pursuant to a 15-year gas purchase agreement. The gas production facility will consist of two 1.2 million-gallon digesters that will consume wastes generated by the Grand Island plant and which will be able to produce up to 250,000 MMBTU per year — the equivalent of approximately 1.8 million gallons of heating oil. In a third announcement, Environmental Power Corporation closed a $60 million tax-exempt bond financing through the Gulf Coast Industrial Development Authority, as well as the previously announced $15 million private placement of shares of its Series A 9% cumulative convertible preferred stock and common stock warrants. The proceeds of the bond offering will provide debt financing for four proposed renewable natural gas facilities in Texas being developed by Microgy, Inc. These facilities, when completed, will produce over 2.5 billion cubic feet annually of pipeline-quality renewable gas.
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