WALTHAM, Mass., Jan. 14 /PRNewswire-FirstCall/ -- 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, today announced that it has commissioned a study to determine the feasibility of expanding into European markets. The Alturki Group will fund the investigation in exchange for an equity stake in a new subsidiary of American DG Energy that will be formed should the study prove positive.
"American DG Energy's distributed generation technology and On-Site Utility business model have been proven in the United States, and we are pleased to support this project to bring the technology and its significant energy efficiencies to Europe and potentially the Middle East," stated Ronald V. Portelli, Vice President, Environment & Cleantech Sector, Alturki Group and Managing Director of its subsidiary, AES International Consultants.
The study will initially focus on selecting which European countries are the best match for the American DG Energy combined heat and power (CHP) systems and On-Site Utility business model. The criteria will consist of such items as local energy costs, construction costs, market size, regulatory and environmental conditions, incentives, availability of suitable partners and competitor analysis. If the opportunity is deemed attractive, the study will then conclude with a business plan which would be the foundation for a newly established subsidiary dedicated to serving the European market.
"We have a long personal history in Europe and the potential expansion there would be a logical growth step for us," stated John Hatsopoulos, CEO of American DG Energy. "The additional support of an organization such as the Alturki Group will be an important resource for us both during the study phase and beyond."
American DG Energy sells the energy produced on-site from a combined heat and power (CHP) 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 CHP 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.
About Alturki Group
Khalid Ali Alturki & Sons (Alturki Group) is a leading family owned investment company which has been operating in Saudi Arabia for over 35 years. The Group's subsidiaries and joint venture companies are involved in contracting, trading, manufacturing, consulting, and investment in the major industrial sectors of construction, oil & gas, real estate development, and environment & clean tech. More information can be found at www.AlturkiGroup.com and www.AESIntlConsultants.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.