EPG develops partnership with California dairies

Environmental Power Corporation has entered into an agreement that will enable the Portsmouth-based company to fulfill the saleable gas rights of its Microgy subsidiary under a long- term purchase contract signed last month with Pacific Gas and Electric.

The Monday announcement comes one month after Environmental Power agreed to deliver up to 8 million cubic feet of renewable gas daily to PG&E. Environmental Power has “executed definitive lease and manure handling agreements” with six California dairies for the development of renewable gas facilities.

Under the new agreement, Microgy will construct and operate gas facilities at the farms, creating over 2.5 billion cubic feet of renewable gas annually – enough to meet the needs of PG&E and equivalent to the natural gas needs of 50,000 California households.

In addition, the new project will be instrumental in capturing nearly a million metric tons of greenhouse gas emissions each year aiding the state in reducing greenhouse gases and resulting in an estimated annual value of more than $3 million in carbon credits.

“Today’s announcement firmly establishes our entry into California, the largest dairy market in the United States,” said Rich Kessel, president and CEO of Environmental Power.

According to Kessel, the new California facilities will be similar in design to the four facilities currently under construction in Texas, and may be eligible for the same long-term tax-exempt financing the Texas projects have received. – TRACIE STONE/NEW HAMPSHIRE BUSINESS REVIEW

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