WALTHAM, Mass. — American DG Energy Inc. announced it has reached an agreement to provide its On-Site Utility™ combined heat and power (CHP) solution to the Salvation Army Greater New York Divisional Headquarters in New York City. 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 CHP equipment and replace existing traditional electric chiller 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 $3.6 million for American DG Energy.

The newly installed systems include Tecogen Inc.’s 100 kW InVerde® Ultera™ CHP unit. The InVerde uses advanced engine technology that offers high overall efficiency, 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,” said 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 provides 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 solutions. For more information, visit www.americandg.com.

Publication date: 2/8/2016

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