Environmental Power Corp. unveils superior anaerobic digester technology

Facility is first U.S. installation using Danish electricity generating anaerobic digester technology licensed to Microgy for deployment in North America. The system is projected to generate 6.5 million kWh annually from the waste of about 800 milk cows, an output sufficient to supply about 600 homes. A ribbon cutting ceremony will be held June 22 at the Five Star Dairy in Elk Mound, Wis., to commemorate the milestone...

PORTSMOUTH, NH, June 16, 2005 -- Environmental Power Corp., in collaboration with Dairyland Power Cooperative, is formally commissioning the first of its electricity generating anaerobic digester systems. A ribbon cutting ceremony will be held on June 22, at the Five Star Dairy in Elk Mound, Wis., to commemorate this milestone. The ceremony will feature a facility tour and brief remarks by William Berg, president and CEO of Dairyland Power, Frank Frassetto, Wisconsin state director for USDA Rural Development, Joseph Cresci, Environmental Power chairman, and Agricultural Minister Counselor Steen Thorsted of the Royal Danish Embassy in Washington, D.C.

This facility has been designed and constructed by Microgy Inc., Environmental Power's principal operating subsidiary. The facility is believed by Microgy to produce substantially more electricity from a given quantity of animal and organic wastes than any other anaerobic digester system built for commercial purposes in the United States. The facility is the first installed in the United States utilizing a proven Danish technology licensed exclusively to Microgy for deployment in North America. The system is projected to generate approximately 6.5 million kilowatt hours annually from the waste of about 800 milk cows, an output that is sufficient to supply approximately 600 homes.

Cresci stated "The commissioning of this system is the first step toward what we believe will be an important role for this superior technology in helping our country cost-effectively meet its growing energy demands while protecting the environment."

In addition to producing renewable energy, anaerobic digesters are recognized as a solution to environmental and regulatory compliance issues related to animal waste disposal. Microgy's system can help farmers reduce ground and surface water pollution and minimize odors while freeing land for increased herd sizes, which is expected to help lower farm operation and maintenance costs. Anaerobic digesters also produce residual byproducts, including compost, bedding materials and pollution management credits that can serve as additional sources of revenue.

"Environmental Power Corp. is committed to developing renewable and alternative energy facilities. With our first-mover advantage in producing biofuels from agricultural waste management processes, we hope to continue leading the way in the growing market for 'green' energy," said Kam Tejwani, Environmental Power president and CEO. "This event showcases Microgy's unique technology and celebrates our collaboration with Lee Jensen of Five Star Dairy, Dairyland Power Cooperative and Dunn Energy. We look forward to the construction and installation of additional anaerobic digesters with Dairyland Power Cooperative."

"This alliance with Microgy enables Dairyland to expand our renewable energy portfolio as part of our long-term plan to use clean, cost-effective sources of electricity. Increased demand on our system will be eased by this waste-to-energy generation, which is good for our cooperative members and the environment," said Dairyland Power's Berg.

The event is expected to attract key policy makers, investors, and members of the agricultural community and invited press.

Environmental Power Corp. (www.environmentalpower.com) 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.

Microgy holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology, which transforms manure and food industry waste into methane-rich biogas that can be used to generate electricity or thermal energy, or refined to pipeline-grade methane for sale as a commodity. This technology also represents a potentially profitable solution for the nation's estimated 3,500 large animal feeding operations as they seek to comply with a growing number of proposed and adopted mandates developed by federal, state and local officials aimed at regulating the management of farm waste. Complying with these mandates places potentially significant cost and operational burdens on America's farmers, which Microgy's technology can help to address.

With headquarters in La Crosse, Wis., Dairyland Power Cooperative provides wholesale electricity to 25 member distribution cooperatives and 20 municipal utilities. Dairyland's service area encompasses 62 counties in four states (Wisconsin, Minnesota, Iowa and Illinois). Dairyland has provided low-cost, reliable electrical energy and related services to its customers in the upper Midwest for over 63 years.

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