WALTHAM, Mass., Jan. 6, 2016 /PRNewswire/ -- American DG Energy Inc. (NYSE MKT: ADGE), a leading On‑Site Utility™, offering clean electricity, heat, hot water and cooling solutions to hospitality, healthcare, housing and athletic facilities, today announced that it has reached an agreement today to provide an On-Site Utility solution to the Salvation Army Greater New York Divisional Headquarters in New York City, NY. The project is expected to save the Salvation Army upwards of $850,000 over the full length of the contract.
Under the terms of the agreement, the Salvation Army building will receive 100 kW of combined heat and power ("CHP") equipment and replace existing traditional electric chilling equipment. American DG will sell the associated electricity, chilled water and hot water to the building at a discounted rate to the prevailing utility price. Over the life of the 15 year contract, the agreement will produce revenue of approximately $3,600,000 for American DG Energy.
The newly installed systems include Tecogen Inc.'s 100 kW InVerde® Ultera™ CHP unit. The InVerde uses Tecogen's advanced and proven engine technology, which offers the highest overall efficiencies, significant operating cost savings, ultra-low emissions controls, and practical long-term serviceability. Using Tecogen's patented generator and inverter technology, the units will be able to provide the building with "supplemental stand-by" generation (also called "convenience power") during utility outages, in addition to operating the unit normally when the utility is up.
"Facilities like the Salvation Army are ideal for the on-site utility business," stated Benjamin Locke, Co-CEO of American DG Energy. "By providing electricity, cooling, and heat, the customer enjoys the full advantages of a total HVAC system at a fraction of the price of operating a traditional utility solution and with no upfront installation expense. We are very happy to work with the Salvation Army and hope that successful completion of this project will lead to similar Salvation Army installation sites."
American DG Energy sells the energy produced from an onsite energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility™ customers only pay for the energy produced by the system and receive a guaranteed discount rate on the price of the energy. All system capital, installation and operating expenses are paid by American DG Energy.
About American DG Energy
American DG Energy supplies low-cost energy to its customers through distributed power generating systems. The Company is committed to providing institutional, commercial and small industrial facilities with clean, reliable power, cooling, heat and hot water at lower costs than charged by local utilities – without any capital or start-up costs to the energy user – through its On-Site Utility™ energy solutions. American DG Energy is headquartered in Waltham, Massachusetts. Learn more about how American DG Energy (NYSE MKT: ADGE) reduces energy costs at www.americandg.com or follow us on Facebook and Twitter.
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. This press release does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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SOURCE American DG Energy Inc.