From Dairy Waste To Natural Gas

US - Yesterday the largest manure-to-natural gas plant got up and running in the heart of Texas dairy country. The project is expected toproduce enough energy to power 11,000 homes a year.
calendar icon 6 November 2007
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PORTSMOUTH - Environmental Power Corporation (AMEX: EPG), a leader in the renewable bioenergy industry, is today celebrating the completion of the Huckabay Ridge facility in Stephenville, Texas. Huckabay Ridge is expected to produce approximately 635,000 MMBtus of RNG(R) per year - the equivalent of over 4.6 million gallons of heating oil. In addition to energy production, Huckabay Ridge is also expected to generate carbon credits, per protocols being established with the Chicago Climate Exchange.

Several Texas dignitaries including Texas Comptroller Susan Combs, Agriculture Commissioner Todd Staples and State Representative Sid Miller will be joined by area dairy owners, renewable energy proponents, suppliers, energy purchasers and others involved in the construction of the facility for a ribbon cutting event at the project site.

The Huckabay Ridge facility, owned by Microgy, Inc., a wholly owned subsidiary of Environmental Power, generates methane-rich biogas from manure and other agricultural waste, conditions the biogas to natural gas standards and distributes RNG(R) via a commercial pipeline. RNG(R) is Microgy's branded, renewable natural gas.

"We are very pleased to have completed the construction of the facility and are ramping up to our targeted production levels," stated Rich Kessel, President and CEO of Environmental Power. "All eight of the digesters are operational and producing biogas which is being conditioned for sale as RNG(R). It is a testament to the hard work and cooperation of many people who have made this unique project a reality."

"With our achievements at Huckabay Ridge, we are extending Environmental Power's first mover status in the production and sale of RNG(R). The understanding we have gained in completing work at Huckabay Ridge is invaluable in advancing our large-scale facilities under development in Texas, California and other markets in North America," continued Mr. Kessel. "Our experience in financing the facility, generating biogas and purifying it to pipeline quality standards puts us in a strong position to quickly execute the balance of the projects in our pipeline. Environmental Power is poised to capitalize on the substantial demand for RNG(R)."

Environmental Power recently announced that, pursuant to a previous 10- year purchase agreement, Pacific Gas & Electric will begin receiving deliveries of RNG(R) from Huckabay Ridge on October 1, 2008. Huckabay Ridge will deliver up to 2,000 MMBtu of gas per day under the contract, in which PG&E has agreed to purchase up to 8,000 MMBtu of RNG(R) from Environmental Power facilities daily. Environmental Power currently has an existing contract to deliver gas to Lower Colorado River Authority (LCRA) which was entered into in December 2006.

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