Anaerobic digestion project receives funding

By Bryan Sims
Web exclusive posted July 24, 2008 at 4:10 p.m. CST

Tarrytown, N.Y.-based Environmental Power Corp., along with its subsidiary Microgy Inc., has received an allocation from the California Debt Limit Allocation Committee for up to $26.1 million to support the financing of its Bar 20 renewable natural gas (RNG) project.

The Bar 20 project, located in Fresno County, Calif., will consist of large-scale anaerobic digestors that will process manure from two adjacent dairies with an expected output of 601,000 million British Thermal Units (Btus) of RNG per year. The Bar 20 site will also co-digest manure with other food and agricultural waste materials to produce biogas, which will then be conditioned to pipeline quality standards and once construction is complete, delivered to Pacific Gas & Electric under an existing power purchase agreement.

In addition to its Bar 20 project, Environmental Power has two similar anaerobic digestion projects at its Riverdale and Hanford Cluster sites. The company also has a smaller project at its Joseph Gallo Farms under development. Between the four projects, Environmental Power will have the capacity to collectively produce approximately 2 million MMBtus per year of pipeline quality gas or RNG, which is equivalent to approximately 20 to 28 megawatts of electricity generation.

Environmental Power, which uses tax-exempt bonds, also received approval from the state of California for its Riverdale and Hanford Cluster projects in May. The company is in the process of marketing the bonds for all three projects and it expects to close on debt financing by the end of August, according to Environmental Power Senior Vice President Mark Hall.

"This is really just a continuation of the ongoing strategy to build these larger scale facilities and for the most part clean up the gas to pipeline quality standards," Hall said.

Environmental Power is a developer, owner and operator of large scale anaerobic digestion facilities across North America. Its principal operating subsidiary, Microgy, holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane-rich biogas from animal wastes and other organic waste for its use to generate energy.

For more information on Environmental Power Corp., visit The company was also featured in Biomass Magazine. To read the story, visit