Environmental Power today announced that it has reached agreement with the Benham Companies, LLC of St. Louis, Missouri, to provide design and construction services for the previously announced anaerobic digester project at the JBS/Swift Grand Island, Nebraska beef processing facility. The 235,000 mmbtu/year biogas project will provide biogas to replace a portion of the natural gas currently used at the Grand Island facility.
Under this agreement Benham will provide Microgy, the wholly-owned subsidiary of Environmental Power, with a Guaranteed Maximum Price for the final design and construction of the JBS/Swift biogas plant. Subsequent adoption of definitive agreements between the parties should allow the company to commence construction of the Grand Island facility in November. The agreement also allows for Microgy and Benham to conduct negotiations allowing Benham to design and construct other anaerobic digester projects for Microgy once definitive agreements have been executed for the Grand Island facility.
Benham is an architectural and engineering design, design/build and life- cycle technology implementation firm that serves federal government and Fortune 500(R) commercial customers. Benham is a subsidiary of Science Applications International Corporation .
“We are pleased to have reached this milestone, not only because it represents important progress on the JBS/Swift project, but because Benham brings significant design, engineering and construction experience to Microgy’s Team,” said Michael Hvisdos, Executive Vice President of Microgy. “Benham has completed 12 projects with similar size and scope of the project at Grand Island, and we are very comfortable that they have the capability to execute this project as well as other Microgy projects in our development pipeline.”
“Through this multi-project construction approach to the build-out of our portfolio, we will no longer be performing construction management activities in-house, but will focus on our strengths – conceptual design and facility operation – and leave to selected construction firms the responsibility to engineer and construct a regional group of our facilities to our specifications,” stated Richard Kessel, President and CEO of Environmental Power. “This will provide economies of scale as we build our projects in parallel on an accelerated basis, and remove much of the risk associated with non-performance by individual vendors. We also believe that this disciplined process will assure more certainty on project returns, provide the expected long term stable revenue base from our facilities sooner, and differentiate us from other development companies.”
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 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 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) 292-3914
mhall@environmentalpower.com
Public Relations Contact
John Abrashkin
Ricochet Public Relations
(212) 679-3300 x121
jabrashkin@ricochetpr.com
Investor Relations Contact
John Baldissera
BPC Financial Marketing
1-800-368-1217
ir@barrettopacific.com
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