News | August 17, 2004

Microgy Signs First Farm For Anaerobic Digester Feed Production System

Agreement Expands Microgy's Reach into California

Portsmouth, NH -- Microgy Cogeneration Systems, Inc., a wholly owned subsidiary of Environmental Power Corporation, announced today that it had signed an agreement with De Snayer Dairy of Lodi, California, for the on-farm location of an animal feed production system based on Microgy's anaerobic digester technology. Microgy expects to own and operate the proposed facility that will utilize manure from De Snayer's dairy operations to generate biogas for the operation of equipment developed to process feed ingredients, utilizing a process that is being pioneered by The Scoular Company.

The De Snayer project represents the first facility proposed to be developed under Microgy's Feed System Project Development Agreement with The Scoular Company, pursuant to which Microgy expects to construct up to 50 systems that will enable the environmentally sound and efficient production of ingredients for animal feed. The De Snayer project remains subject to the approval of Scoular and the negotiation and execution of a definitive agreement between Microgy and Scoular regarding Scoular's supply and marketing of feed ingredients.

Leen De Snayer, owner of De Snayer Dairy, stated, "Microgy's digester technology offers a common-sense, business-oriented means of handling farm waste. The project should result in costs savings, enhance farm revenues and help the environment. An opportunity like that is hard to pass up."

Microgy's proprietary systems provide farmers with a superior waste management solution that pays for itself over time by transforming organic waste into biogas that can be used to generate electricity or thermal energy, as well as useful by-products. Danish Biogas Technologies A/S has granted Microgy the exclusive North American rights to develop projects based on this technology.

Jeff Dasovich, Vice President of West Coast Operations for Microgy, stated, "We are very excited about partnering with the De Snayer family for our first California project. And based on the reception that our technology has received in the Central Valley, we view this project as the first of many successful partnerships in California. In an increasingly global agricultural economy, we are hoping to give the state's dairy community both an economic and an environmental edge."

Donald A. Livingston, President of Microgy, added, "Our team has worked hard to introduce farms in California to the benefits of Microgy's technology, and we are now starting to see the results. These efforts will expand the use of our technology beyond electrical generation to feed production, while also expanding our geographic reach beyond the Midwest and into California. We are particularly pleased to have the opportunity to work with the De Snayer Dairy to demonstrate the versatility of our technology as we move forward with applying it to Scoular's vision for the creation of value added ingredients for the animal feed industry."

Eric Jackson, Senior Vice President in Scoular's Minneapolis office, stated, "We are enthusiastic about our relationship with Microgy, and we are particularly pleased to launch our first project in California. The combined digester/feed processing unit is good for the energy business, the agricultural community and the environment."

Headquartered in Omaha, Nebraska, The Scoular Company is a century-old agribusiness company supplying grain and feed ingredients throughout North America.

About Environmental Power Corporation
Environmental Power Corporation is a leader in resource management and energy production technologies that serve multiple socially responsible markets. Its wholly-owned subsidiary, Microgy Cogeneration Systems, Inc., owns a license to a proprietary technology to convert manure and food industry wastes into biogas, providing a waste management solution with the potential to pay for itself by producing renewable energy and other residual products valuable to farmers and growers. For more information visit the company's web site at www.environmentalpower.com.

Source: Environmental Power Corporation