RYE BROOK, N.Y., Nov. 3, 2011 /PRNewswire/ -- 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, is now operating a 375 kW combined heat and power (CHP) system at Doral Arrowwood Hotel and Conference Center in Rye Brook, New York. The Company estimates the total revenue from this project to be approximately $10 million over the term of the agreement.
"As a premier hotel in Westchester County, New York, we are dedicated to providing our guests with the highest quality experience; we believe this includes delivering an eco-friendly approach our guests can feel good about. This CHP system complements the many other eco-friendly steps we have already taken," said Steve Mabus, General Manager of Doral Arrowwood Hotel and Conference Center. "We are pleased to be working with American DG Energy. They have done an outstanding job deploying the entire system, from design to startup, and it was done at zero cost to us."
American DG Energy produces clean energy in the form of electricity, space heat, domestic hot water and pool heat at Doral Arrowwood and sells it to the resort at a price lower than the local energy utility. The energy is produced with small-scale CHP equipment, including three 100 kW units providing energy for the hotel and one 75 kW unit providing energy to the Pfizer training center. The CHP equipment is located at the resort, but owned and operated by American DG Energy. Taking advantage of the Company's On-Site Utility energy solution, Doral pays only for the energy used and avoids all capital, installation and operating costs. Additionally, the Company is responsible for all service, maintenance and repair of the energy system; therefore, Doral does not need to dedicate any manpower to supporting the equipment.
CHP systems offer considerable environmental benefits when compared with purchased electricity and on-site-generated heat from a boiler. By capturing and utilizing heat that would otherwise be wasted from the production of electricity, CHP systems require less fuel than equivalent separate heat and power systems to produce the same amount of energy. Because less fuel is combusted, greenhouse gas emissions, such as carbon dioxide, as well as air pollutants like nitrogen oxides and sulfur dioxide, are reduced. The CHP system installed at Doral Arrowwood is expected to reduce the property's emissions by 1,800 tons of carbon dioxide annually, the equivalent of planting 380 acres of trees or eliminating the emissions of 300 cars.
American DG Energy sells the energy produced on-site from a combined heat and power 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.
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.