October 25, 2006

Cargill and Environmental Power form strategic alliance for business development

Press release
 

Cargill, an international provider of food, agricultural and risk management products and services, and Environmental Power Corporation, a leader in the renewable bio-fuels industry, have announced a strategic alliance involving Environmental Power's Microgy subsidiary.

According to the business development agreement between the parties, Cargill and Microgy will work together to identify opportunities for farmers and others in the food supply chain to turn their waste products into bio-based energy and carbon offset credits, and to share in the resulting revenue streams. The agreement also includes provisions for granting Cargill warrants on purchasing stock in Environmental Power Corporation.

Microgy builds, owns and manages facilities that produce RNGTM (renewable natural gas) or other energy from food and animal waste, and can earn greenhouse gas production offset credits for trading on international carbon credit exchanges.

"We are impressed with Environmental Power Company's advanced anaerobic digestion technology for extracting biogas from the agri-food waste stream," said Eugenio Meschini, managing director of Cargill Emission Reductions Services.

Meschini added that beyond producing clean, reliable energy, the technology may also help Cargill's customers and business partners manage waste and improve their bottom lines.

"We believe that the expertise of Cargill, coupled with the value created by Microgy's renewable energy and carbon credit production facilities, will propel our roll-out of RNG production capacity in major agricultural and food industry markets throughout North America," said Rich Kessel, president and chief executive officer of Environmental Power. 

Kessel expressed pride that Cargill has recognised Environmental Power's strengths in choosing the company to help Cargill provide collaborative solutions to customers.

"We are very excited by this alliance and believe that it will move Environmental Power past the inflection point on our growth path and position us to capitalise rapidly on the large market potential for our renewable natural gas and carbon offset facilities," Kessel added. 

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 development and deployment of a proprietary technology for the extraction of methane gas from animal and food industry wastes for its use to generate energy.  For more information, visit the company's website at: www.environmentalpower.com