American DG Energy to Provide Clean Energy from Fourteen Combined Heat and Power Systems at Multiple Buildings
January 04, 2012
American DG Energy Inc. (NYSE Amex:ADGE), a leading On Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, has reached an agreement to supply clean energy to multiple residential buildings located in New York. Under the terms of the fifteen-year agreement, the Company will install fourteen combined heat and power (CHP) systems at multiple residential buildings, managed by RY Management, a property management company. The CHP systems, totaling 1050 kW, will be owned and operated by American DG Energy. The property management company will receive a discount on the energy produced by the CHP systems and reduce the emissions of its managed properties. The value of the agreement to the Company is $27.4 million.
“This is a very significant order for American DG Energy and it prepares us for a very exciting 2012,” said John N. Hatsopoulos, CEO of American DG Energy. “As the core piece of our strategy, the Company continues to pursue large property holders to accelerate our growth with multi-property deals.”
American DG Energy will produce clean energy in the form of electricity and domestic hot water for the properties at a price lower than the local energy utility. Because the property management company opted for the Company’s On-Site Utility energy solution, the properties will pay only for the energy used and will avoid all capital, installation and operating costs. The Company will also handle all service, maintenance and repair; therefore, neither RY Management nor its managed properties will need to provide manpower to support the energy equipment.
The specific CHP systems planned for the properties are expected to reduce the emissions of the properties by 4,386 tons of carbon dioxide each year. This reduction is equal to removing the carbon emissions of 724 cars each year.*
*Figures were calculated using the EPA CHP Partnership emissions calculator.
American DG Energy sells the energy produced from an onsite energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility customers only pay for the energy produced by the system and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy. All system installation, operation and support are handled by the Company as well.
About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities – without any capital or start-up costs to the energy user – through its On-Site Utility energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. More information can be found at www.americandg.com.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company’s website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.