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Environmental Power Applauds Biogas Production Incentives Act of 2007

Environmental Power Corporation, a leader in the renewable biofuels industry, today announced its support for the Biogas Production Incentives Act of 2007 introduced by Senators Ben Nelson of Nebraska and Larry Craig of Idaho. The bill would encourage greater production of biogas from animal and other organic waste, reducing demand for fossil fuels by increasing the production of a readily available, renewable domestic source of energy.

"The technology to break down animal wastes to create biogas already exists but it needs encouragement from the federal government to become a commercially-viable alternative to natural gas," said Senator Nelson. "This new energy source would benefit rural communities and the environment while lessening our dependence on fossil fuels. We shouldn't waste the waste; we should promote biogas development."

"Creating a product out of waste is a groundbreaking opportunity to assist our livestock farmers," said Senator Craig. "You create a new market, help control waste, keep our environment clean, and create a new revenue stream for farmers. That is why this is so exciting and worthwhile."

Biogas production from animal waste offers significant environmental benefits in addition to offsetting fossil fuel consumption. Anaerobic digestion systems prevent methane, a potent greenhouse gas, from entering the atmosphere, and as such will generate carbon offset credits that could be traded under a greenhouse gas cap-and-trade system. In addition, the process improves water quality through better manure management.

The proposed bill calls for production tax credits, loans and grants to facilitate capital investment, and a floor price for biogas producers to protect them from volatility in the energy market.

"We applaud the leadership from Senators Nelson and Craig on legislation that would support energy production from anaerobic digestion systems," said Rich Kessel, President and Chief Executive Officer of Environmental Power.

"Anaerobic digestion of manure and other organic waste can produce significant amounts of renewable energy and can deliver a natural gas equivalent directly into the existing natural gas pipeline infrastructure, " Kessel added. "In addition, our process captures methane, a greenhouse gas twenty-one times more potent than carbon dioxide and prevents its escape into the atmosphere as a very damaging greenhouse gas. This important legislation will encourage the development of a readily-available renewable energy source and will help to diversify America's energy assets."

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