PORTSMOUTH, N.H., July 26, 2001 – Environmental Power Corporation (EPC) announced today that it had completed acquisition of a controlling interest of more than 80% in Microgy Cogeneration Systems, Inc., a Golden, Colorado based renewable energy and distributed generation company.
Microgy has an exclusive license on a microturbine Cogeneration system as well as an exclusive license for high efficiency conversion of certain agri-wastes into renewable resource derived electricity for supply to the utility grid.
Joseph Cresci, CEO of EPC, stated: “We are very pleased that our review of Microgy increased our confidence that this acquisition will avail EPC of an excellent potential for rapid expansion of generating facilities which provide peaking power from renewable resources. EPC believes there are thousands of farms, many in major electric markets (e.g. California, New York, and the Mid-West), with a pollution control problem that our Microgy technology addresses and in so doing, makes available an off-take of biogas for power production. Electricity produced from this process would make each host farm into a distributed energy site supplying peaking ‘green power’ that many utilities and energy marketers as well as consumers favor and that the Bush energy proposal supports with significant economic benefits.”
This acquisition by EPC involves the exchange of Microgy stock by certain of its principal shareholders for common and convertible preferred stock of EPC. EPC will offer to acquire the remaining Microgy securities using the same exchange ratio as with the principal shareholders. The exchange ratio is based on all of the fully diluted equity of Microgy being exchanged for 45% of the fully diluted equity of EPC.
ABOUT ENVIRONMENTAL POWER CORPORATION:
Environmental Power Corporation (OTCBB:POWR – news) is an energy company with annual revenues in excess of $50 million which is focused on environmentally sound power generation, including waste coal, biomass and distributed generation.