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JULY 2006


Renewable natural gas facility developed in Texas

Environmental Power Corporation announced that its subsidiary Microgy, Inc. is developing its third large scale, pipeline-quality renewable natural gas (RNG) production facility in Texas. The facility, located in Dublin, will be owned and operated by Microgy.

The Rio Leche facility will be Microgy’s third planned facility to implement its standardized, large-scale eight-digester design, and will closely resemble the company’s Huckabay Ridge facility in construction in nearby Stephenville, Texas. Like Huckabay Ridge, Rio Leche will be sited at a compost yard and will process the waste from approximately 10,000 dairy cattle, as well as other food industry waste. Once completed, Rio Leche is expected to generate an estimated 650,000 MCF of pipeline-grade RNG annually (enough to heat approximately 11,000 homes), which will be cleaned, compressed, and delivered directly to a natural gas pipeline.

Environmental Power has acquired the site for the Rio Leche facility and has reached an agreement with Producers’ Compost, which operates the compost yard at the Huckabay facility, to operate the compost yard at Rio Leche. The Rio Leche facility is now entering the permitting stage.

Huckabay Ridge, the company’s first such facility, is in construction and is scheduled to begin commissioning this summer, with the facility expected to be fully operational this fall. The Mission project, the company’s second large-scale RNG facility, located in Hereford, Texas, has received its air permits, clearing the way for commencement of construction activities.

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