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Alternative Energy

Cow Manure and Other Wastes to Generate Renewable Natural Gas

Pacific Gas and Electric Company ("PG&E") and Microgy, Inc ("Microgy") today announced an agreement that allows Microgy to utilize PG&E's extensive natural gas transmission network to distribute renewable natural gas to markets in California and the West.

Microgy, a subsidiary of Environmental Power Corporation, plans to generate renewable natural gas from dairy and other wastes using its proprietary biogas production technology. Under the terms of the agreement, PG&E will work with Microgy to interconnect these facilities with PG&E's extensive network of natural gas pipelines.

As these state-of-the-art, gas-generating facilities are constructed at farms in the central valley, California will enjoy a reliable supply of renewable, environmentally friendly gas at market-competitive prices.

"California is the largest dairy producer and the largest energy consumer in the United States. This interconnection agreement will provide California with access to a new gas supply from our projects, said Kam Tejwani, CEO, Environmental Power Corporation. Our projects will also provide additional economic benefits to the dairies that host these projects," Tejwani added. "The opportunity for the central valley dairy community to participate in Microgy's project development efforts represents a great opportunity to help California meet the state's growing energy demand in an environmentally effective manner."

"California potentially stands to gain a significant new supply for its natural gas customers," said Bob Howard, PG&E's vice president, gas transmission and distribution. "This agreement ensures the necessary infrastructure is in place to deliver this renewable natural gas to the California marketplace, benefiting customers."

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