Hereford, Texas facility will generate renewable natural gas from manure

  and other waste; Agriculture Commissioner Todd Staples to attend ground

                               breaking event



    TARRYTOWN, N.Y., Aug. 6 /EMWNews/ -- Environmental Power

Corporation (Nasdaq: EPG), a leader in the renewable bioenergy industry,

today is celebrating the commencement of construction of its Hereford

RNG(R) facility in Texas. The plant will use proven anaerobic digester

technology to generate methane-rich biogas from manure as well as other

food and agricultural wastes, condition it to natural gas standards and

distribute renewable natural gas (RNG(R)) via a commercial pipeline. Prior

to the ground breaking, Texas Commissioner of Agriculture Todd Staples will

hold a press conference, where he is expected to describe the opportunity

for cooperation among agricultural and energy stakeholders.



    Environmental Power's subsidiary Microgy, Inc. will construct, own and

operate the renewable energy production facility. At full capacity, the

facility is expected to generate 635,000 MMBtu per year -- the energy

equivalent of 4.5 million gallons of heating oil and enough to heat about

11,000 homes.



    "The ground breaking of our project at Cnossen Dairy signifies our

continuing commitment to developing large-scale renewable natural gas

production facilities in the Texas market," said Rich Kessel, President and

CEO of Environmental Power. "We are very pleased to be working in

partnership with Frank and Jim Cnossen and are very appreciative of the

reception we have received here in Hereford."



    Prior to the ground breaking, Commissioner Staples will meet with

representatives of federal, state and local authorities, local farmers and

members of the energy industry. The meeting will focus on integrating

agriculture and energy industries in Texas.



    "Texas is a leader in renewable energy and this new innovative plant

plays an important role ensuring the Lone Star State remains in the

forefront," Agriculture Commissioner Todd Staples said. "New opportunities

abound for our state's agricultural producers and they take pride in

partnering in projects resulting in a healthier environment. We are not

dependent on foreign food and should not be dependent on foreign oil."



    Cnossen Dairy is a state of the art production dairy, home to 10,000

cows and employing the latest technologies to maximize efficiency and

minimize environmental impact. Microgy's facility will provide a

sustainable waste management solution for the dairy and will generate

valuable byproducts such as fertilizer and animal bedding.



    "With the beginning of construction on this exciting new project,

Microgy and Cnossen Dairy are demonstrating their dedication to exploring

innovative ways to benefit our community," said Sheila Quirk, Executive

Director of the Hereford Economic Development Corporation. "This plant will

create a new cost-effective source of fuel derived from waste materials,

allowing us to improve the local dairy industry's environmental profile

while strengthening the region's economy."



    The Cnossen Dairy project is similar in scale to Huckabay Ridge,

located in Stephenville, Texas. Huckabay Ridge, which opened in November

2007, is the largest renewable natural gas production facility in North

America and has been generating commercial quantities of RNG(R) since

January 2008.



    ABOUT ENVIRONMENTAL POWER CORPORATION



    Environmental Power Corporation is a developer, owner and operator of

renewable energy production facilities. Through the Company's subsidiary,

Microgy uses anaerobic digestion technology to extract methane gas from

animal wastes and other organic waste for its use to generate energy. For

more information visit the Company's web site at

http://www.environmentalpower.com.



    CAUTIONARY STATEMENT



    The Private Securities Litigation Reform Act of 1995, referred to as

the PSLRA, provides a "safe harbor" for forward-looking statements. Certain

statements contained in this press release, such as statements concerning

planned manure-to-energy systems, our sales pipeline, our backlog, our

projected sales and financial performance, statements containing the words

"may," "assumes," "forecasts," "positions," "predicts," "strategy," "will,"

"expects," "estimates," "anticipates," "believes," "projects," "intends,"

"plans," "budgets," "potential," "continue," "targets" "proposed," and

variations thereof, and other statements contained in this press release

regarding matters that are not historical facts are forward-looking

statements as such term is defined in the PSLRA. Because such statements

involve risks and uncertainties, actual results may differ materially from

those expressed or implied by such forward-looking statements. Factors that

could cause actual results to differ materially include, but are not

limited to: uncertainties involving development-stage companies;

uncertainties regarding project financing, the lack of binding commitments

and/or the need to negotiate and execute definitive agreements for the

construction and financing of projects, the sale of project output, the

supply of substrate and other requirements and for other matters; financing

and cash flow requirements and uncertainties; inexperience with the

development of multi-digester projects; risks relating to fluctuations in

the price of commodity fuels like natural gas, and our inexperience with

managing such risks; difficulties involved in developing and executing a

business plan; difficulties and uncertainties regarding acquisitions;

technological uncertainties; including those relating to competing products

and technologies; risks relating to managing and integrating acquired

businesses; unpredictable developments; including plant outages and repair

requirements; the difficulty of estimating construction, development,

repair and maintenance costs and timeframes; the uncertainties involved in

estimating insurance and implied warranty recoveries, if any; the inability

to predict the course or outcome of any negotiations with parties involved

with our projects; uncertainties relating to general economic and industry

conditions, and the amount and rate of growth in expenses; uncertainties

relating to government and regulatory policies and the legal environment;

uncertainties relating to the availability of tax credits, deductions,

rebates and similar incentives; intellectual property issues; the

competitive environment in which Environmental Power Corporation and its

subsidiaries operate and other factors, including those described in our

most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q,

well as in other filings we make with the Securities and Exchange

Commission. Readers are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date that they are

made. We undertake no obligation to publicly update or revise any

forward-looking statements, whether as a result of new information, future

events or otherwise.






    CONTACT:

    Company Contact                     Public Relations Contact

    Mark Hall, Senior Vice President    John Abrashkin

    Environmental Power Corporation     Ricochet Public Relations

    (630) 573-2926                      (212) 679-3300 x121

    [email protected]        [email protected]