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Environmental Power Holds Ground Breaking Ceremony for Renewable Natural Gas Facility at Rio Leche Estates

Dublin, Texas Facility to Generate Pipeline-Grade Renewable Natural Gas

(RNG(R)) from Manure and Other Waste Products

TARRYTOWN, N.Y., June 11 /PRNewswire-FirstCall/ -- Environmental Power Corporation (Nasdaq: EPG), a leader in the renewable bioenergy industry, will today mark the commencement of construction at its Rio Leche Estates RNG(R) Facility with a ground breaking ceremony. The Dublin, Texas facility, owned and operated by Environmental Power's subsidiary, Microgy, Inc., will generate pipeline-grade RNG(R) from dairy cow manure and other waste products. RNG(R) is Microgy's branded, renewable pipeline quality methane product.

The Rio Leche facility is expected to generate 635,000 MMBtu of RNG(R) per year, the energy equivalent of 4.5 million gallons of oil. The facility will use a thermophilic, codigestion anaerobic digestion process to generate methane-rich biogas, condition the gas to natural gas pipeline standards and transport the RNG(R) to market via the Enterprise natural gas pipeline system. The gas will be purchased under a previously announced medium-term purchase agreement. Because the project will trap methane, a potent greenhouse gas, the facility has the potential to generate a significant number of greenhouse gas offset credits. Construction of the facility is expected to be completed by the end of the first quarter of 2009.

Participants at today's ground breaking are expected to include Rich Kessel, President and CEO of Environmental Power; State Representative Sid Miller; Mayor of Dublin Red Seigars; Joe Adams, President of MWH Constructors; County Commissioner Lynn Tidwell; John Cowen, Executive Director of the Texas Association of Dairymen; James Fritts, President of the Dublin Economic Development Corporation; Sandy Reed, Executive Director of the Dublin Economic Development Corporation; Dublin City Manager Jerry Guillory; and Karen Wright, Executive Director of the Dublin Chamber of Commerce.

"Beginning construction at Rio Leche represents an important step forward for our portfolio of Texas projects," said Rich Kessel, CEO and President of Environmental Power. "Experience with our nearby Huckabay Ridge facility provided important design and operational knowledge that we have incorporated into Rio Leche. This project reinforces the nexus of agricultural and energy markets, providing a reliable source of renewable energy and contributing to the environmental well-being of Erath County and beyond."

"We are all excited about the ground breaking of this important project," said Sid Miller, State Representative for the 59th District. "Rio Leche provides Texas with three key benefits: It will strengthen our agricultural community, provide a reliable source of energy, and reduce our dependence on imported fuel. This project represents a step forward for the agricultural community in Texas and for the state as a whole."

In addition to generating a reliable source of RNG(R), Rio Leche is expected to help local dairies manage their waste. The facility will help reduce odors, protect groundwater and help farmers to operate within nutrient management guidelines.

"The Rio Leche project has our full support and encouragement," said James "Red" Seigars, Mayor of Dublin. "This facility will help Dublin's dairy farmers in a number of ways, and we expect it will benefit the entire community. We are proud to be home to such an innovative renewable energy project."

"Environmental Power and Microgy are investing in the infrastructure and technology that will contribute to the economic health of Erath County for years to come," said James Fritts, President of the Dublin Economic Development Corporation. "Our region is home to a vibrant dairy community and we anticipate the Rio Leche project will help our farmers and strengthen the economy in a truly sustainable way."


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


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 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.

Public Relations Contact

Mark Hall

Senior Vice President

Environmental Power Corporation

(630) 573-2926

John Abrashkin

Ricochet Public Relations

(212) 679-3300 x121

SOURCE Environmental Power Corporation
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