FA Play

TARRYTOWN, N.Y., July 28 /PRNewswire-FirstCall/ — Environmental Power Corporation (the “Company”) today announced that its subsidiary, Microgy Grand Island, LLC, has completed a financing involving the sale of $7 million of tax-exempt bonds issued by the City of Grand Island, Nebraska. The proceeds of the bonds will be used to finance construction of the Grand Island Biogas Project at the JBS Swift Plant in Grand Island, Nebraska. The biogas facility, which is being developed by the Company’s subsidiary, Microgy, Inc., is already under construction and is expected to begin producing biogas by the end of the year.
The bonds will bear interest at a rate of 7% per year and mature on June 1, 2023. The bond proceeds will be applied to the construction of the project. With this closing the Company has fully secured financing for the project. Additional details regarding the terms of the bonds and related agreements are available in a Form 8-K filed with the Securities and Exchange Commission and available on the Company’s website.
“This represents another important step in the growth of our business and demonstrates that financing is available on competitive terms for our projects,” said Rich Kessel, President and Chief Executive Officer of Environmental Power. “The project backed, tax exempt financing markets remain accessible for our projects despite the recent troubles in the credit markets. Ultimately, the value of the gas that we produce and the waste solutions that we provide our partners are what drive the success of our projects.”
“I also want to thank JBS Swift and the City of Grand Island for all their help and support though this process,” continued Kessel.
The Grand Island Biogas Facility will produce and sell biogas to the adjacent JBS Swift beef processing plant pursuant to a 15-year biogas purchase agreement. The facility will use proven anaerobic digester technology to convert animal waste and other byproducts of the JBS Swift plant into a methane-rich biogas to be used as fuel in the plant’s existing boilers. At capacity, the facility is expected to generate 235,000 MMBtu per year — the energy equivalent of 1.7 million gallons of oil — and will offset approximately 25% of JBS Swift’s annual purchase of natural gas. In addition to reducing the plant’s dependence on fossil fuels, JBS Swift will be able to reduce the land application of organic waste materials from its operations.
B.C. Ziegler and Company doing business as Ziegler Capital Markets Group served as the Underwriter for the placement of the bonds.
ABOUT ENVIRONMENTAL POWER CORPORATION
Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes and other organic waste for its use to generate energy. For more information visit the Company’s web site at .
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 regarding the terms of, investor interest in and ultimate sale of tax-exempt bonds and receipt of proceeds therefrom, 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
Mark Hall, Senior Vice President
Environmental Power Corporation
(630) 573-2926

Public Relations Contact
John Abrashkin
Ricochet Public Relations
(212) 679-3300 x121

Environmental Power Corporation