Governor Rendell Says Merger of Renewable Energy Firms Will Generate $50 Million in New Investments, Create Jobs

HARRISBURG, Pa., Feb. 22 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today hailed the merger of California solar energy giant SunTechnics with Pennsylvania-based Mesa Environmental Sciences Inc., a move that will spark the development of $50 million in new solar energy projects and more than double the number of jobs at the company's new East Coast headquarters in Malvern, Chester County.

"This announcement reinforces how our clean energy initiatives have established Pennsylvania as a national leader in attracting international investment in alternative energy development," Governor Rendell said. "Our efforts will continue to pay off for years to come, creating high-paying jobs for Pennsylvanians and saving consumers billions of dollars in energy costs."

The newly formed company, Mesa Energy LLC, is a subsidiary of SunTechnics, based in Sacramento. SunTechnics is the world's largest solar integration company with facilities in 22 countries worldwide, and is the sales and installation arm of Hamburg, Germany-based manufacturer Conergy AG. In November, Governor Rendell joined Conergy officials to announce plans to locate the company's financial subsidiary, Epuron, in Pennsylvania.

Today's announcement foreshadows planned investments by Conergy of more than $100 million in new solar and biofuels projects in the commonwealth.

"Our initiatives have attracted some of the world's largest renewable energy companies to Pennsylvania, and we have enacted energy and investment policies that ensure these companies can compete in the marketplace," Governor Rendell said. "In addition to bringing the world's leading solar energy developer to Pennsylvania, this merger gives Mesa the ability to immediately pursue more than $50 million in renewable energy opportunities that will create new jobs and boost Pennsylvania's economy."

Governor Rendell made the announcement at the Friends Center in Philadelphia, where the newly formed company will install a photovoltaic solar array that will annually generate 20,000 kilowatt hours and reduce carbon emissions by 15 tons each year. The project is partially funded from a $701,366 Pennsylvania Energy Development Authority grant to the Sustainable Development Fund. The Friends Center received $42,750 of that amount.

SunTechnics is one of the global leading suppliers of turnkey renewable energy systems and has founded subsidiaries in Portugal, Singapore, and South Korea in the past two years. Mesa Environmental Sciences Inc. has installed numerous solar power systems at government and institutional buildings including emergency power backup systems for critical electronics at the Governor's Residence in Harrisburg and DEP's Southeast Regional Office Building in Norristown.

The Conergy group is the world's largest developer of renewable energy systems, focusing principally on solar, wind and bio-energy projects. The company has more than 1,500 employees worldwide with estimated revenues of $1 billion in 2006. The company cited the opportunities created under Governor Rendell's Alternative Energy Portfolio Standards among the reasons for selecting Pennsylvania for its North American base.

Governor Rendell recently unveiled his Energy Independence Strategy, a visionary plan to invest $850 million to significantly expand Pennsylvania's alternative fuel and clean energy industries, stabilize electricity rates for businesses, reduce dependence on foreign oil and cut consumer energy costs by $10 billion over the next decade.

The Governor's proposal includes a $200 million Pennsylvania Sunshine Solar Initiative that provides incentives for solar manufacturers to establish operations in Pennsylvania, and offers rebates to cover up to 50 percent of the cost of new solar systems for homeowners and small businesses.

"Innovative clean energy development is helping to power Pennsylvania's new economy, and we're well-positioned to embrace even greater opportunities as markets continue to grow," Governor Rendell said. "My Energy Independence Strategy will help Pennsylvania consumers save money by encouraging electric conservation during periods of peak demand and by reducing the need to build costly new generating plants."

The Governor's Energy Independence Strategy also offers incentives for electricity generators to invest in conservation measures, and offers rebates to small businesses and homeowners who trade in inefficient home cooling appliances.

Pennsylvania's energy portfolio ensures that 18 percent of all energy generated in the state comes from clean, efficient sources by 2020. It also sets ambitious standards for solar power, requiring that solar sources generate 0.5 percent of all electricity in the commonwealth, an equivalent to powering almost 80,000 typical homes per year in Pennsylvania.

By mandating the use of alternative energy sources, the Governor and the General Assembly have given business the confidence to invest in clean energy research and development. Benefits to Pennsylvania include $10 billion in increased output for the commonwealth, $3 billion in additional earnings, and as many as 4,000 news jobs for residents over the next 20 years.

The Governor recently redoubled the commonwealth's "green" electricity commitment to 20 percent, making Pennsylvania the largest state purchaser of green electricity in the nation. Earlier this month, Pennsylvania received a 2006 Green Power Leadership award from the U.S. Environmental Protection Agency and the U.S. Department of Energy for its green electricity purchasing leadership. The annual awards recognize leading national green power purchasers and suppliers for their commitment and contribution to helping advance the development of the nation's green power market.

Pennsylvania also is second only to California in the number of buildings certified by the U.S. Green Building Council under the internationally recognized Leadership in Energy and Environmental Design program.

Governor Rendell recently announced the investment of more than $3 million in Alternative Fuel Incentive Grants to stimulate the production, distribution and use of biofuels made in Pennsylvania.

The nation's first coal gasification-liquefaction plant is being built in northeastern Pennsylvania. The facility will use waste coal to produce 40- million gallons of clean-burning diesel fuel each year. What the Governor is doing to support the project is unprecedented, creating a fuel consortium with private industry to purchase nearly all output. Pennsylvania will lock in its supply for some 10 years at prices well below current market values and ensure a long-term, viable market for the plant.

For the second consecutive year, the U.S. Environmental Protection Agency has recognized Pennsylvania for its national energy leadership in putting landfill gas to work, powering economic growth and reducing greenhouse gas emissions. Pennsylvania is home to 24 operational gas-to-energy projects. DEP estimates these projects generate more than 100 megawatts of electricity, enough to power more than 250,000 homes for a year. Additionally, the projects annually generate approximately 7,000 million standard cubic feet of landfill gas for industrial/commercial uses.

Brought back to life after years of inactivity, the Pennsylvania Energy Development Authority has awarded $21 million in grants and loans for 57 clean energy projects that will leverage $240 million in private investment. The projects will create 975 permanent and construction jobs.

The Pennsylvania Energy Harvest Grant Program has awarded $21 million and leveraged another $51.9 million in private funds since its inception in May 2003 for projects using sources such as wind, solar, biomass, waste coal and recycled energy.

For more information on Governor Rendell's Energy Independence Strategy visit DEP's Web site at http://www.depweb.state.pa.us/, Keyword: "Energy."

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/ .

  CONTACT:  Kate Philips
            717-783-1116

            Tom Rathbun, DEP
            717-787-1323