ELK GROVE VILLAGE, Ill., Feb. 15, 2011 (GLOBE NEWSWIRE) -- Lime Energy Co. (Nasdaq:LIME) announced today the recent creation of a new subsidiary, Lime Energy Asset Development, LLC (LEAD). LEAD has been created to develop, manage and in some situations own energy producing assets such as landfill gas to electricity, combined heat and power, on-site generation, solar photovoltaic, solar thermal, biomass and geothermal energy projects. Eric Dupont was promoted to President of LEAD and Don White was named Vice President of Business Development for LEAD. Previously, Mr. Dupont was the Chief Financial Officer of Applied Energy Management, Inc. (AEM), a subsidiary of Lime Energy, responsible for its financial controls, management and oversight. Prior to joining AEM, Mr. Dupont was Director of Structured Finance for DukeSolutions/Ameresco where he developed, analyzed and financed numerous multi-million dollar renewable and traditional energy projects for a wide variety of industrial, commercial and governmental clients. Mr. White was previously Vice President of Global Energy Holdings Group responsible for development, marketing and strategy.
As its first project, LEAD has acquired the gas rights to the Zemel Road landfill in Punta Gorda, Florida for $2.65 million and entered into a 20-year power purchase agreement with a utility for the sale of electricity and certain environmental attributes to be generated by a 4.2 megawatt landfill gas to electricity generating facility it will construct on the site. The company projects the construction of the facility will cost approximately $7.3 million and should be operational during the third quarter of 2011. The Company has retained an investment bank to arrange approximately $7.5 million in long-term debt for the project. In addition, the Company believes that the project will qualify for a renewable energy grant from the U.S. Treasury of approximately $2 million.
"I am very excited about this new leadership opportunity to generate additional long-term sustainable revenue sources for the company in this dynamic energy market," stated Eric Dupont. "LEAD will have unique strategic advantages in this fast growing market. We will leverage our engineering, implementation and project finance experience and capabilities to provide energy asset development and management services to our large, diversified base of commercial and industrial, utility and public sector customers who wish to benefit from alternative and/or renewable energy sources. In this role, we serve two sets of clients: the energy consumer and the project finance investors. For the energy consumer, we perform project feasibility assessments, evaluate alternative technologies, estimate economic returns, arrange debt and equity financing, manage the design and construction process, and operate the asset under a long-term power purchase agreement. For our project finance investor clients, we source, qualify and structure investment opportunities to maximize risk-adjusted returns, then manage the design and construction process and operate the assets under long-term power purchase agreements. In some limited situations, we may take equity positions in these investments."
"Lime Energy is excited about this new business unit and additional opportunity it creates for the company," stated John O'Rourke, Chief Operating Officer of Lime Energy. "LEAD will further leverage the company's platform to grow a business at a time when renewable energy and distributive generation are key components to many of our client's future energy plans."
"The Zemel Road project is an excellent first project for LEAD," concluded Jeff Mistarz, Lime's Chief Financial Officer. "The timing of the project allows us to take advantage of the U.S. Treasury's 1603(b) renewable energy grants, thereby minimizing our capital investment, while establishing LEAD in the energy asset development business. The project should generate long-term recurring revenue and earnings, as well as a strong return for our stockholders."
About Lime Energy
Lime Energy is a leading provider of energy efficiency solutions. Our services include integrated energy engineering, consulting and implementation of solutions which enable our customers to reduce their facilities' energy consumption, lower their operating and maintenance costs and reduce their carbon footprint. We focus on solutions which include lighting, mechanical and electrical upgrade services, water conservation, weatherization and renewable project development and implementation. We provide these solutions to the commercial and industrial markets, utilities, energy service companies (ESCOs) and the government sector across a wide range of facilities including high-rise office buildings, manufacturing plants, retail sites, mixed use complexes and large government sites. The company's stock is traded on NASDAQ under the symbol LIME. Additional information is available at the company's website at www.lime-energy.com or by calling 847-437-1666.
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This news release includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that reflect Lime Energy's current expectations about its future results, performance, prospects and opportunities. Lime Energy has tried to identify these forward-looking statements by using words and phrases such as "may," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "hope," or similar expressions. These forward-looking statements are based on information currently available to Lime Energy and are subject to a number of risks, uncertainties and other factors that could cause Lime Energy's actual results, performance, prospects or opportunities in the future to differ materially from those expressed in, or implied by, these forward- looking statements. These risks are referenced in Lime Energy's current Annual Report on Form 10-K and Quarterly Report on Form 10-Q or as may be described from time to time in Lime Energy's subsequent SEC filings; such factors are incorporated herein by reference.
CONTACT: Investor Relations Glen Akselrod Bristol Capital Ltd. (905) 326-1888 email@example.com