Stevens Institute of Technology Expands Energy Agreement with Chillers to Four Buildings Current Revenue Backlog Estimated at $270 Million
WALTHAM, Mass., Dec. 4, 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, today announced that it has reached an agreement to provide 415 tons of chilled water and cooling to four buildings at Stevens Institute of Technology (Stevens) in Hoboken, New Jersey. The highly efficient cooling systems will be owned and operated by American DG Energy. The revenue value of the agreement to American DG Energy is $10,100,000 over the 25 year term.
The new chillers will be located at the McLean Building, Schaeffer Gym, Stevens Building and Central Building, and will bring the total number of energy systems installed at Stevens to 14. Utilizing American DG Energy's On-Site Utility energy solution, Stevens will only pay for the energy produced by the chillers and avoid all capital, installation and operating costs of the systems.
"We are very excited that the interest in our various On-Site Utility solutions continues to expand and that our strong backlog of orders continues to grow," stated Barry Sanders, President and Chief Operating Officer of American DG Energy. "We now estimate that our current agreements have a revenue potential of $270 million over their term."
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.
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. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. 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. The statements in this press release are made as of the date of this press release. 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.