Cargill and Environmental Power Form Strategic Alliance For Business Development
Cargill announced the formation of a strategic alliance involving Environmental Power's Microgy subsidiary. According to the business development agreement between the parties, Cargill and Microgy will work together to identify opportunities for farmers and others in the food supply chain to turn their waste products into biobased energy and carbon offset credits, and to share in the resulting revenue streams. The agreement also includes provisions for granting Cargill warrants on the purchase of stock in Environmental Power Corporation.
Microgy builds, owns and manages facilities that produce RNGTM (renewable natural gas) or other energy from food and animal waste, and can earn greenhouse gas production offset credits for trading on international carbon credit exchanges.
"We are impressed with Environmental Power Company's advanced anaerobic digestion technology for extracting biogas from the agri-food waste stream," said Eugenio Meschini, managing director of Cargill Emission Reductions Services. "Beyond producing clean, reliable energy, this technology may help our customers and business partners manage their waste and improve their bottom lines."
"We believe that the expertise of Cargill, coupled with the value created by Microgy's renewable energy and carbon credit production facilities, will propel our roll-out of RNG production capacity in major agricultural and food industry markets throughout North America," said Rich Kessel, president and chief executive officer of Environmental Power. "We are proud that Cargill has recognized our strengths in choosing us to help them provide collaborative solutions to customers. We are very excited by this alliance and believe that it will move Environmental Power past the inflection point on our growth path and position us to capitalize rapidly on the large market potential for our renewable natural gas and carbon offset facilities."
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