The Huckabay Ridge facility, owned by Microgy, Inc., a wholly owned subsidiary of Environmental Power, generates methane-rich biogas from manure and other agricultural waste, conditions the biogas to natural gas standards and distributes RNG(R) via a commercial pipeline. RNG(R) is Microgy's branded, renewable natural gas.

"We are very pleased to have completed the construction of the facility and are ramping up to our targeted production levels," stated Rich Kessel, President and CEO of Environmental Power. "All eight of the digesters are operational and producing biogas which is being conditioned for sale as RNG(R). It is a testament to the hard work and cooperation of many people who have made this unique project a reality."

Environmental Power recently announced that, pursuant to a previous 10- year purchase agreement, Pacific Gas & Electric will begin receiving deliveries of RNG(R) from Huckabay Ridge on October 1, 2008. Huckabay Ridge will deliver up to 2,000 MMBtu of gas per day under the contract, in which PG&E has agreed to purchase up to 8,000 MMBtu of RNG(R) from Environmental Power facilities daily. Environmental Power currently has an existing contract to deliver gas to Lower Colorado River Authority, which was entered into in December 2006.