Construction begins on gas production facility

Portsmouth, NH— Environmental Power Corporation and its subsidiary, Microgy, Inc., have begun construction on a multi-digester biogas production and gas conditioning facility to be known as the Huckabay Ridge facility, located near Stephenville, Texas. Microgy will design, construct, own and operate the facility.

The contemplated project will entail the construction of eight 916,000-gallon digesters, sufficient to process the manure from up to 10,000 cows.

The facility is expected to produce an aggregate of one billion cubic feet of biogas per year with an energy content of 650,000 million BTU (equivalent to approximately 12,700 gallons per day of heating oil). The gas is to be treated and compressed to produce and deliver pipeline-grade methane that will be sold as a commodity directly into a nearby natural gas pipeline.

The facility is to be located adjacent to Producers Compost Incorporated (“PCI”), a composting site that receives manure from over 20,000 cows.

Microgy has signed an agreement with PCI providing Microgy with the exclusive right to source all the manure required by the project from the composting facility.

Completion of construction of the Huckabay Ridge facility is subject to the securing of additional financing by Environmental Power Corporation or Microgy. No commitments for such financing are yet in place.