TARRYTOWN, N.Y., July 28 NY-EPG-Sells-Bonds
TARRYTOWN, N.Y., July 28 /PRNewswire-FirstCall/ -- Environmental Power
Corporation (Nasdaq: EPG) (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
http://www.environmentalpower.com.
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
mhall@environmentalpower.com
Public Relations Contact
John Abrashkin
Ricochet Public Relations
(212) 679-3300 x121
jabrashkin@ricochetpr.com
SOURCE Environmental Power Corporation
