Doral Arrowwood Selects American DG Energy as Clean Energy Supplier

Hotel and Conference Center Takes Action to Mitigate Its Environmental Impact

Jun 30, 2010, 13:30 ET from American DG Energy Inc.

WALTHAM, Mass., June 30 /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, has reached an agreement to supply clean energy to Doral Arrowwood Hotel and Conference Center in Rye Brook, New York.  Under the terms of the agreement, Doral will soon receive a significant portion of its energy from a 375 kW combined heat and power (CHP) system, which will be owned and operated by American DG Energy.  Doral will receive a discount on the energy produced by the CHP system and reduce its carbon emissions by up to 1,800 tons per year.  The value of the agreement to the Company is $10 million.

American DG Energy will produce clean energy in the form of electricity, heat and hot water at Doral Arrowwood and sell it to the resort at a price lower than the local energy utility.  The energy will be produced with small-scale CHP equipment, including three 100 kW units and one 75 kW unit, located at the resort, but owned and operated by American DG Energy.  Taking advantage of the Company's On-Site Utility energy solution, Doral will pay only for the energy they use and will avoid all capital, installation and operating costs.  Additionally, the Company will handle all service, maintenance and repair of the energy system; therefore, Doral will not need any manpower to support the energy equipment.

"It is vital that we do what we can to mitigate our impact on the environment," said Steve Mabus, General Manager of Doral Arrowwood Hotel and Conference Center.  "American DG Energy is helping us achieve our sustainability objectives while lowering our operating costs and without capital, financing and adding staff."

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 planned for Doral Arrowwood is expected to reduce the property's emissions by up to 1,800 tons of carbon dioxide annually, the equivalent of planting 380 acres of trees or eliminating the emissions of 300 cars.

On-Site Utility

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


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.