WALTHAM, Mass., June 10 /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 expand the scope of the Company's On-Site Utility at Stevens Institute of Technology, a premier technological university, located in Hoboken, NJ. Under the terms of the agreement, American DG Energy will install an additional five combined heat and power (CHP) units, one chiller and one boiler at three separate buildings on campus. The Company estimates the value of the energy of these additional projects over the term of the agreement to be $12 million.
"Because American DG Energy has done a great job deploying the energy systems at the Schaeffer Center, we approved expansion of the On-Site Utility into other campus buildings," stated Norman Forster, Director of Physical Plant at Stevens Institute of Technology.
The university is already receiving a portion of its energy from a 75 kW CHP system and a 200 ton natural gas chiller, which were installed at Stevens' Schaeffer Center and McLean Hall, respectively, by American DG Energy in 2009 and are, through the original On-Site Utility agreement, owned, operated and maintained by the Company. The original agreement authorized American DG Energy to evaluate additional campus buildings to determine which others qualify for the Company's On-Site Utility energy solution. At this time, three buildings have been identified: Central Plant, Howe Center and the Library.
American DG Energy will install two 75 kW CHP units at the Central Plant, two 75 kW CHP units at Howe Center and one 75 kW CHP unit, one 30 ton hot water absorber and one 800,000 BTU boiler at the Library. When the onsite energy systems are operational, they will produce clean energy in the form of electricity, space heating and cooling. Stevens will pay for the energy used and will avoid all capital, installation, operating and maintenance costs because the university has selected the Company's On-Site Utility energy solution.
"American DG Energy is providing these new energy systems to replace aging and less efficient systems at no cost to Stevens," said Mr. Forster. "We won't have to maintain the systems – so they are basically worry-free. Plus, they help us further reduce our carbon footprint and lower our energy costs."
American DG Energy sells the energy produced from an onsite energy 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 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.