WALTHAM, Mass., June 21, 2012 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE), a leading On‑Site Utility, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, is now operating a combined heat and power system (CHP) at Governor Paterson Towers in Governor, New Jersey. The revenue value of the agreement to the Company is $1.9 million over the fifteen-year term.
The highly efficient 75kW CHP system is owned and operated by America DG Energy and now produces energy in the form of electricity, space heat and domestic hot water. Governor Paterson Towers is only paying for the energy used the by the facility which is priced lower than the local utility provider. American DG Energy, along with partner AES-NJ Cogen, is maintaining and operating the On-Site Utility with zero cost to Governor Paterson Towers.
CHP systems are a cleaner energy option, offering considerable environmental benefits when compared with purchased electricity from the grid. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel while producing the same amount of energy. Using the EPA CHP Partnership emissions calculator, Governor Paterson's utilization of a CHP system will reduce their carbon emissions by approximately 252 tons per year, or the equivalent of planting 48.7 acres of forest annually.
Governor Paterson Towers is a 225 unit, 30 story senior living center dedicated to their residents and their quality of life. With the operation of an On-Site Utility, they are now also contributing to the quality of the environment with their reduction in carbon emissions.
American DG Energy sells the energy produced from an On-Site 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.
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.
SOURCE American DG Energy Inc.