WALTHAM, Mass., Feb. 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, has entered into an agreement with Nexant, Inc., a global provider of intelligent grid software and clean energy solutions, to monetize the energy efficiency credits for the Company's fleet of combined heat and power (CHP) systems operating in Massachusetts. Under the terms of the agreement, Nexant will obtain state approval of individual CHP systems in Massachusetts for energy efficiency credits under the Alternative Energy Portfolio Standard (APS), and then sell those credits to interested parties.
"We are very excited about the opportunity to be monetizing the energy efficiency of our Massachusetts fleet of CHP systems," said John Hatsopoulos, Chief Executive Officer of American DG Energy. "A single 75 kW system could produce credits valued at $12,000 per year, based on today's value for credits. Since there is minimal additional cost associated with earning credits, all dollars received add to the bottom line."
Through Nexant, the Company has successfully completed the APS application for seven (7) systems. The Massachusetts Department of Energy Resources (DOER) has granted a statement of qualification for all seven systems, five of which have already generated Alternative Energy Credits (AECs) for the Company. By the end of 2011, the Company anticipates having at least 13 systems earning credits.
According to Darrell Sandlin, Director Engineering Services, Clean Energy Markets for Nexant, "The highly efficient CHP systems used by American DG Energy seem to be a good fit with the DOER program goals. Their growing fleet of systems allows Nexant to work with one party instead of multiple sites."
Massachusetts Alternative Energy Portfolio Standard
The Alternative Energy Portfolio Standard (APS) provides an opportunity for Massachusetts businesses, institutions, and governments to receive an incentive for installing eligible alternative energy systems, which are not renewable. The APS requires a certain percentage of the state's electric load to be met by eligible technologies, including combined heat and power, flywheel storage, coal gasification, and efficient steam technologies. These resources contribute to the Commonwealth's clean energy goals by increasing energy efficiency and reducing the need for conventional fossil fuel-based power generation.
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.
Nexant, Inc. is a premier provider of software and consulting services for the next-generation intelligent grid and clean energy solutions. For the last decade, it has been developing and commercializing technology solutions enabling utilities, power producers, and retailers to operate and deploy new technologies and applications in the emerging grid. Its clients include major utilities, transmission and distribution system operators, chemical and petroleum majors, financial institutions, government agencies and Fortune 500 companies. For additional information, please visit www.nexant.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.