WALTHAM, Mass., April 5, 2016 /PRNewswire/ -- EuroSite Power Inc., (OTCQX: EUSP) an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centres in the United Kingdom (UK) and Europe is pleased to announce the first On-Site Utility customer to execute a gas resale agreement, in turn improving the gross margin obtained from those sites covered by the agreement.
The agreement which has been developed in collaboration with UK gas supplier Corona Energy, will have an initial term of 12 months, beginning May 1, 2016. Under the agreement the customer, Abbeycroft Leisure will purchase natural gas from EuroSite Power for its three sites at Bury St Edmunds Leisure Centre, Haverhill Leisure Centre, and The Gym Ipswich. Compared with previous rates the rates now payable under the new agreement are up to 42% less. In addition, the daily charges made by the previous utility provider have been avoided. Overall the customer is expected to save over £80,000 on their total annual gas and heat bills for the three sites.
Importantly, by lowering the rate paid for gas at each site the existing Combined Heat & Power (CHP) units operated by EuroSite Power at both Bury St Edmunds and Haverhill will enjoy higher gross margins. Additionally as the company will also be supplying and reselling the gas normally used in the sites' boilers and for catering etc., EuroSite Power will also enjoy additional revenue.
Speaking about the agreement with Abbeycroft Leisure, EuroSite Power's Managing Director Paul Hamblyn noted, "This is the first On-Site Utility customer to take advantage of our recent arrangement with Corona Energy for long term discounted gas purchase. We are optimistic that other customers will be quick to see the potential of the arrangement and execute similar gas resale agreements with us in the coming months." Mr. Hamblyn added, "Gas resale agreements allow EuroSite Power to offer yet another source of savings to our customers while also improving site economics and margin stability for the Company, a win-win for all parties."
EuroSite Power 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 solution 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, operating expenses and support are paid by EuroSite Power.
About EuroSite Power
EuroSite Power Limited is a subsidiary of American DG Energy Inc. (NYSE MKT: ADGE). The Company provides institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by conventional energy suppliers – without any capital or start-up costs to the energy user. More information can be found at www.eurositepower.co.uk.
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, including its annual report on Form 10-K for the fiscal year ended December 31, 2015. 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.
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SOURCE EuroSite Power Inc.