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August 16th, 2005
Environmental Power Corporation (AMEX:EPG) partly as a result of its subsidiary, Microgy, Inc.,
increased revenues for the second quarter 28 percent to $14.9 million from the $11.6 million it brought in the second quarter
of 2004. Microgy, which has the license to Anearobic Digester Energy technology, which effectively gives your standard dairy
cow the ability to generate almost all of the electricity needed for one home, contributed $945,316 in revenue in the
latest quarter as opposed to the same quarter last year when it did not make a financial contribution.
Power generation revenue from the company’s other unit, Buzzard Power Corporation
generated $13.9 million compared to $11.6 million for the same quarter last year. That increase was however attributed to
rescheduling of the annual planned maintenance outage at the Buzzard Scrubgrass facility.
For the latest six month period ended June 30, 2005, total revenues at Environmental Power,
were $30 million compared to $25.9 million for the same period last year. For the six month period, Microgy’s total
revenue was $2.2 million.
Summarizing the quarter was Kam Tejwani, CEO at Environmental Power, "Environmental Power achieved
significant milestones towards establishing leadership in the emerging market for profitable renewable energy in this second
quarter, decisively moving from the conceptual to the operational phase. We formally launched a fully operational digester
facility that is serving as a compelling example of what we believe to be the superior quality of our technology and the numerous
benefits of Microgy's solutions, designed to minimize waste management problems while providing a renewable source of energy
for utilities and consumers. With the addition of Randy Hull and John O'Neill to our management team, we now have a team in
place that we believe can accelerate our growth initiatives. We feel confident that the project completion experience we have
gained, and the management team that we now have on board, will enable us to take advantage of the market opportunities and
establish a position of leadership in the renewable energy market."
For the rest of 2005, the management indicated that it expected Microgy’s revenue to increase as a result of
additional projects and agreements, subject to finalization and financing considerations.
Mr. Tejwani in the financial announcement, also gave his thoughts on the impact of the recent United States Energy
Bill as well as specific information on the new tax credits available, "We expect that the new policy, the accompanying tax
credits and related benefits should serve to further drive adoption of Environmental Power's renewable energy solutions. For
example, the law provides a ten-year, $0.009/KWH tax credit for certain types of "open loop biomass" renewable power projects
placed in service by the end of 2007. Also, the law provides a number of incentives designed to spur adoption of renewable
energy projects, including, for example, accelerated depreciation provisions for gas gathering projects. We believe that projects
based on our technology will qualify for some or all of these tax credits and other benefits. The economics of our projects,
which we believe will be attractive even without government incentives, are expected to be further enhanced by these benefits.
As a first mover in the emerging market for profitable, renewable energy production, we welcome this initiative, which we
believe will drive market interest in environmentally smart energy. Our goal is to offer a reliable long term, renewable source
of energy that is cost-effective and has less price volatility than traditional resources. "
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