Environmental Power has announced that its wholly owned subsidiary Microgy, which produces biogas, has signed a 10-year agreement with natural gas distributor Pacific Gas & Electric to deliver renewable natural gas from its Huckabay Ridge facility in Texas.
The agreement allows Pacific Gas & Electric (PGE) to purchase up to 8,000 million cubic feet of pipeline quality renewable natural gas daily from Microgy’s facilities.
Deliveries from the Huckabay Ridge project, at up to 2,000MMBtu per day, will allow Microgy to begin deliveries under this contract. The Huckabay Ridge facility has been delivering pipeline quality gas to Lower Colorado River Authority (LCRA) since April 2007.
Richard Kessel, president and CEO of Environmental Power, said: Our partnership with PGE is a win-win proposition – it provides PGE’s customers with a reliable, cost-effective source of renewable energy, and it allows our companies to begin working together while our California projects proceed through the permitting process. At the same time, we greatly appreciate our relationship with LCRA and the support they have provided during the start-up of our Huckabay Ridge facility. We will continue to explore opportunities to work with LCRA on future projects.