Putney Paper in Vermont contracts for trucked compressed natural gas from NG Advantage

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Putney Paper in Vermont contracts for trucked compressed natural gas from NG Advantage

August 27, 2012 - 03:45
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MILTON, VT, Aug. 24, 2012 (Press Release) -NG Advantage LLC, the U.S. leader in the new industry of trucking compressed natural gas (CNG) to enterprises not connected to a pipeline, has secured contracts with Pike Industries a subsidiary of Oldcastle Materials, the North American arm of CRH (NYSE: CRH), and Putney Paper, a subsidiary of APC Paper Group. NG Advantage will begin deliveries in early 2013. The multi-year contracts allow these innovative companies to realize both the economic and environmental benefits of lower cost, clean, North American natural gas. NG Advantage believes this is the first announcement of contracts for compressed natural gas delivered to enterprises beyond the pipeline in the United States.

Pipeline natural gas now costs approximately 70% less per BTU than oil or propane. This price advantage is already leading to a rebirth of American manufacturing and rapid job growth. Companies not on the pipeline, however, have found themselves at an increasing competitive disadvantage.

"A series of disruptive technologies have come together to make it possible for us to extend the benefits of natural gas beyond the pipeline," said NG Advantage founder Tom Evslin. "Horizontal drilling and hydraulic fracturing have dramatically driven down the price of natural gas in North America. Composite materials have led to the development of practical shipping containers for compressed gas. And modern communication lets us track trucks and customer usage in real time."

Vermont's Governor Peter Shumlin (D) has championed the use of natural gas for its significant economic and environmental benefits. "I congratulate these groundbreaking Vermont employers on making the switch to compressed natural gas so they can lower their energy bills and grow more jobs," said Governor Shumlin. "NG Advantage's first-of-its-kind business will lead the nation as we work to reduce our dependence on foreign oil and lower carbon emissions.

NG Advantage compresses natural gas off of existing transmission pipelines into specialized composite trailers. Customers use natural gas directly from the trailers eliminating the need for onsite storage. Proprietary routing and monitoring technology assures customer supply regardless of usage fluctuations and efficient use of tractors, trailers, and compressors. Open "How it Works Video" an illustration of the customer experience.

"Businesses across the region are eager to make the switch from oil and propane to lower-cost, stable, natural gas, "said NG Advantage CEO Neale Lunderville. "NG Advantage is well positioned to begin service in early 2013. We have multi-year contracts in place, have received local approval, and are beginning the state land use process for our first compressor site in Milton, Vermont. We anticipate breaking ground in autumn and have already ordered the ANGI compressors and the trailers from Lincoln Composites needed for our first customers."

NG Advantage's first compressor station will serve enterprise customers in Vermont and adjacent New York and New Hampshire. The company plans rapid expansion throughout the northern New England region and beyond. Compressed natural gas delivered by truck is a low cost alternative to oil products for sites which use more than 150,000 gallons of oil or the equivalent each year or 100,000 gallons seasonally. Unlike liquefied natural gas (LNG), CNG is practical for medium sized industrial and institutional customers since it does not require expensive cryogenic storage at customer sites and 7x24 monitoring.

About NG Advantage LLC

NG Advantage LLC is the leading provider of trucked compressed natural gas (CNG) service in the U.S. - bringing the economic and environmental benefits of North American natural gas to customers without access to a pipeline. With key customer contracts signed, equipment ordered, regulatory agreements in place and construction permitting well under way, NG Advantage expects to begin deliveries in early 2013 to customers in Vermont, New Hampshire and adjacent NY from its first compressor site and will add new sites starting later in 2013.

NG Advantage compresses natural gas from an existing pipeline into specialized containers and delivers it via public highways directly to large industrial, commercial and institutional users providing them with cheaper, cleaner and safer fuel. NG Advantage saves customers 20-40% on energy bills annually, reduces their CO2 emissions by 26%, and virtually eliminates harmful pollutants like sulfur dioxide and nitrous oxides

For more information: www.ngadvantage.com or P.O. Box 817, Milton, Vermont or +1.802.760.1167

About Putney Paper:

APC Paper Group, the parent company of Putney Paper recycles over 200 million pounds of paper annually. APC Paper Group consists of three paper mills; all producing 100% recycled paper 100% of the time. Each location has been upgraded with state of the art, efficient cleaning equipment. These upgrades allow the company to turn what would normally be headed for landfills into high quality paper ready for the converting industry to shape into new consumer products.

Putney Paper has been in business for over 50 years, employs 130 people at its Vermont facility along the Connecticut River, and is a leading manufacturer of napkins, towels, and wrapping tissue made entirely from 100% recycled paper.

"We are excited about our partnership with NG Advantage," said Frank Tarantino, CEO of Putney Paper Co. Inc. "Paper making is a very energy intensive process and conversion to natural gas will allow us to better compete in a global economy. Our competitors are located on gas pipelines and already have the natural gas advantage. Now we will have that advantage in Putney as well."

"Putney Paper is deeply committed to producing high-quality, environmentally friendly products and converting to natural gas will help us reach our goal," Tarantino continued. "The energy savings and environmental benefits of this deal make it a win-win for the company and the people of Vermont."

About Pike Industries:

Pike Industries, Inc. is a subsidiary of Oldcastle Materials, Inc., the North American arm of CRH (NYSE: CRH), and is the leading vertically integrated supplier of aggregates, asphalt, ready mixed concrete, and construction and paving services in the United States. In the Northern New England region, Pike Industries employs 1000 people at its 40 asphalt plants and 20 crushing facilities across Vermont, New Hampshire and Maine.

"Energy costs are a huge concern for our company as we work to deliver the highest quality paving and materials to keep the traveling public safe," said Christian Zimmerman, President of Pike Industries. "This partnership represents an incredible opportunity to lower paving costs so that we can make the most of our very short construction season and continue to locate asphalt plants close to paving projects even if these areas are not served by pipelines."