Environmental Power quits Pa. project
Officials of Portsmouth-based Environmental Power Corporation announced Thursday they will terminate a 22-year leasehold interest in the Pennsylvania-based Scrubgrass Facility held by its Buzzard Power subsidiary due in part to the failure of the facility to meet financial performance expectations.
The lease termination and subsequent debt cancellation is expected to have a combined transaction value of approximately $3 million. The company also expects to cancel $2.7 million of EPC Corporation indebtedness.
As a result, the company said it will treat operations relating to Buzzard as discontinued.
Company officials said they will continue focusing on subsidiary Microgy Inc. and its effort in generating renewable natural gas from farm animal waste as well as carbon credits.
“Our focus necessarily has to be on realizing the vision for Microgy in North America where shareholder value can be realized,” said CEO Richard E. Kessel. “Therefore, the time has come to take the next logical step in our company’s evolution by disposing of this legacy asset whose value has diminished and concentrating our entire resources on growing Microgy.” – TRACIE STONE