Microgy Inc., a subsidiary of Environmental Power Corporation has entered into a letter of intent with Swift & Company to convert waste products to biogas at Swift's Grand Island, Neb., beef processing plant.



The agreement provides that Microgy and Swift & Company intend to construct a biogas production facility at the plant that will use Microgy's anaerobic digestion technology to extract methane-rich biogas from animal wastes, meat processing wastes and certain wastewater plant residual streams that would otherwise be landfilled or land-applied.



In addition to the initial biogas project in Grand Island, both parties will cooperate to identify, evaluate and develop projects at Swift's seven other beef and pork production facilities throughout North America.



Swift and Microgy intend to complete the negotiations for a long-term biogas purchase and supply commitment for the Grand Island processing plant as well as a long-term lease for the location of the biogas production facility to be owned and operated by Microgy. With respect to each additional project that the parties agree to develop, Microgy will provide all necessary designs and engineering to construct the biogas production facilities, and will own, operate and maintain the facilities.



Sam Rovit, President and CEO of Swift & Company, said, "Today's announcement reflects our commitment to operational excellence and to the environment as we pursue our vision of becoming the best red meat provider in the world. The Microgy facility is expected to deliver Swift a cost-effective source of fuel while simultaneously reducing the volume of plant processing byproducts."



Randy Hull, President of Microgy, added, "We believe that there is the potential to recover energy values in excess of about 1,200,000 MMBTU's per year from multiple digesters within Swift's network of eight beef and pork processing plants and that this demonstrates the capability of anaerobic technology to generate significant amounts of energy from waste materials.



"That's equivalent to over 25,000 barrels per day of heating oil, and, as a result, projects like this have the potential to greatly reduce our dependence on imported hydrocarbons, whether they be oil or liquefied natural gas. We look forward to exceeding Swift's expectations with the initial project at their world class facility in Grand Island."



Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes for its use to generate energy.



With nearly $10 billion in annual sales, Swift & Company is the world's second-largest processor of fresh beef and pork. Founded in 1855 and headquartered in Greeley, Colo., Swift processes, prepares, packages, markets, and delivers fresh, further processed and value-added beef and pork products to customers in the United States and international markets.



SOURCE: Environmental Power Corporation via PR Newswire.