KGRA Energy and Chesapeake Energy Corporation Sign Agreement for 2MW Alternative Power Generation Installation

LAKE FOREST, Ill., Dec. 6, 2011 /PRNewswire/ -- Today, KGRA Energy LP, a premier U.S.-based developer of waste heat recovery power generation projects, announced that it will develop a pioneering waste heat recovery project to harness reciprocating engine exhaust heat. KGRA and Appalachian Midstream Services, LLC, a subsidiary of Chesapeake Energy Corporation (NYSE: CHK), have signed a definitive agreement to build and install a customized 2MW waste heat-to-power system. Chesapeake is the nation's second-largest producer of natural gas and will work with KGRA's subsidiary, Liberty WHR Partners LLC, to install the alternative energy project at one of its Marcellus Shale gas gathering compression facilities in Bradford County, Pennsylvania. KGRA's system will convert waste heat from a series of compressor engines into retail grade electricity. The power can be used on site and/or sold back into the grid by KGRA. Two megawatts is enough electricity to power over 1,600 homes in Bradford County.

"KGRA is pleased to have been selected by Chesapeake, a company that views waste heat recovery as a realistic way to increase efficiencies utilizing an emissions-free power source," said Jason Gold, KGRA Energy's Chief Executive Officer. Noting the project will create and sustain numerous American jobs, Mr. Gold said, "We look forward to breaking ground early next year and building a long term-partnership with Chesapeake."

"We took a keen interest in the application of this technology when KGRA Energy first approached us," said J. Mike Stice, Chesapeake's Senior Vice President – Natural Gas Projects and President of Chesapeake Midstream Development (NYSE: CHKM). "We view this as a trailblazing opportunity for not only Chesapeake, but for the midstream industry, to convert a heat byproduct into emissions-free electric power. Chesapeake is known to develop and champion new technology, and likewise supports novel technology applications such as KGRA's that can create a visible, sustainable impact in our business and in our community."

KGRA will begin installation of the power generation project as early as the first quarter of 2012. The company previously received a $2.75 million commitment from the Commonwealth of Pennsylvania and $500,000 from the Community Foundation for the Alleghenies toward the development of this project. Upon its completion, the project will produce more than 16.6 million kilowatt-hours per year of emissions-free electricity, displacing approximately 16,000 metric tons of CO2 emissions per year that might otherwise be produced by a typical coal-fired power plant.

KGRA Energy uses ORC (Organic Rankine Cycle) technology to recover waste heat from viable sources such as combustion engine exhausts, furnaces, boilers and kilns, converting it into usable CO2-free electricity, which lowers energy costs as well as heat pollution.  KGRA's power generation project at the Chesapeake site will feature a custom-designed waste heat recovery unit that harvests exhaust from five reciprocating engines using interposing oil loops, which have been designed with various levels of redundancy to meet the safety and back-pressure demands of lean-burn gas engines. The system is closed-loop, requires no water, and uses a non-ozone depleting and EPA approved refrigerant. KGRA has selected TAS Energy LLC, a subsidiary of Turbine Air Systems, LTD, to provide the ORC power module which will be made in Houston.

About KGRA Energy LP

KGRA Energy LP is a premier developer of customized renewable energy power generation projects. The company manages the design, construction and installation of organic Rankine cycle waste heat recovery systems that create CO2-free renewable energy for business and utility clients. KGRA's systems are modular and scalable and produce power from waste heat sources deemed unsuitable for traditional cogeneration. KGRA enables pulp and paper, lumber, refinery, cement, power plant and midstream gas transmission clients to convert waste heat to usable electricity, reduce energy costs, lower carbon footprints and create a sustainable future. Visit www.kgraenergy.com for more information.

About Appalachian Midstream Services

Appalachia Midstream Services, L.L.C. is a subsidiary of Chesapeake Midstream (NYSE: CHKM) with operations in Pennsylvania, Ohio, New York and West Virginia. Chesapeake Midstream provides pipeline infrastructure for Chesapeake Energy Corporation's production operations and services to gather, compress, process and treat natural gas and natural gas liquids. Headquartered in Oklahoma City, OK, Chesapeake Midstream's operations are located in the top shale plays in the United States and have over 5,200 miles of active pipeline connected to more than 7,300 Chesapeake wells.

Contact:   Jason Gold
               P: 646-307-8840 x1002
               [email protected]

SOURCE KGRA Energy LP