Environmental Power Corp Retains Marathon Capital as Investment Advisor
CHICAGO, March 17, 2009 – Marathon Capital today announced that it has been retained by Environmental Power Corporation (NASDAQ: EPG) to assist the Company in identifying and managing discussions with potential financial and strategic investors with interest in renewable energy projects being constructed by Environmental Power.
Environmental Power is a developer, owner, and operator of renewable energy production facilities. Environmental Power's principal operating subsidiary, Microgy, Inc., develops and operates proven large scale, commercial anaerobic digestion based projects which produce a versatile methane-rich biogas from livestock waste and other organic sources.
As investment advisor, Marathon Capital will assist Environmental Power in managing the renewable energy equity investment process. Environmental Power has five new projects in Texas and California that are fully permitted, debt financed, and ready to begin construction upon securing additional financing and meeting draw conditions.
Huckabay Ridge (Texas)
The Huckabay Ridge facility in Stephenville, Texas resumed the sale of Renewable Natural Gas (RNG®) to Pacific Gas & Electric on December 22, 2008 with a 635,000 MMBtu/year production target. Huckabay Ridge is in the performance test period as required by the bondholders for release of $60+ million of escrowed proceeds from the sale of bonds for the Hanford and Riverdale projects in California.
Refinements to the Huckabay Ridge renewable energy project have prepared Environmental Power for the roll-out of its next generation of projects based on improved design. The Company believes that its level of biogas production will differentiate it from all other participants in the market.
Other Texas Facilities
The Rio Leche and Cnossen renewable energy projects, each targeted to produce 635,000 MMBtu/year, are slated to begin construction in the second quarter of 2009, pending the timing of the financing initiatives presently underway. Both facilities are fully permitted and have undergone partial site preparation and other precursor-steps to construction. The tax-exempt bond financing for these projects has already been completed, and the Company is in the process of securing the remaining equity required by the Company to supplement that which the Company has already invested. The Company expects these facilities to be operational at the end of the second quarter/beginning of third quarter of 2010.
In September of last year, Environmental Power completed a $62.4 million dollar tax-exempt bond financing in support of its new Riverdale (621,000 MMBtu/year production target) and Hanford (732,000 MMBtu/year production target) facilities in California. All permits are in place for these projects, and final engineering specifications are being completed. Construction is anticipated to begin in the third quarter of 2009, with commercial operations commencing during the fourth quarter of 2010 pending the achievement of performance and funding obligations at Huckabay Ridge.
Bar 20 (601,000 MMBtu/year production target), the third announced Environmental Power facility in California, has received its tax-exempt bond allocation from the California Debt Limit Allocation Committee. The Company expects to pursue tax-exempt bond financing for this project.
The Marathon Capital renewable energy transaction team includes Terry Grant (firstname.lastname@example.org) and Gary Greenblatt (email@example.com). For additional information visit –