South Coast Air Quality Management District Adopts Best Available Control Technology (BACT) for Stationary Non-Emergency Generators

Tecogen's patented Ultera emission technology enables generators with rich-burn engines to meet updated BACT

WALTHAM, MA -- (Marketwired) -- 03/20/18 -- Tecogen Inc. (NASDAQ: TGEN), a clean energy company providing ultra-efficient, clean, natural gas powered on-site power heating and cooling equipment, is pleased to announce that the South Coast Air Quality Management District (SCAQMD) in southern California has updated its Best Available Control Technology (BACT) Guideline for stationary non-emergency electrical generators powered by a spark-ignition internal combustion engine to be consistent with its Rule 1110.2 emissions standard.

In 2008, SCAQMD expanded the rule to cover such newly installed generators, which was the original basis for the invention of Tecogen's now patented Ultera emission system. To-date, Ultera is the only known technology that enables rich-burn engines, specifically, to comply with the rule. Several machines that utilize Ultera are now recorded in California's BACT Clearinghouse as examples of projects able to meet SCAQMD's high standard. Regulators outside of California also refer to the Clearinghouse for their own BACT-related inquiries.

Tecogen's Co-CEO Benjamin Locke stated, "This is a tremendous achievement by Tecogen's applied science capabilities. We are extremely proud that South Coast regulators have recognized Ultera's ultra-low NOx and CO emission performance and cost effectiveness. While it does not mark a regulatory change within SCAQMD, it does raise our profile substantially. More importantly, it alerts other regulators both within California and beyond that there is a viable way to achieve fuel-cell-like emissions with an internal combustion engine. Being listed as BACT by one regulatory body greatly eases the adoption of the standard by other regulators, thus enabling BACT, and by extension the utilization of Ultera, to spread rapidly across the country. It's hard to overstate just how significant a sales driver this could turn out to be."

The regulatory process for an emissions level to achieve BACT status requires consistent test results over an extended period of time followed by an extensive committee review process. SCAQMD is one of 35 air districts in the state of California. It covers the Los Angeles Basin, extends eastward to within a few miles of the Arizona border, and represents almost half of the state's population.

Robert Panora, Tecogen's President and Chief Operating Officer, expressed his enthusiasm for the achievement. "When SCAQMD first applied Rule 1110.2 to distributed power generation in 2008, compliance was not feasible with existing internal combustion engine emissions technology. A decade later, Ultera is becoming increasingly recognized as the gold standard for rich-burn engines. Any new project that requires an emissions permit in the state of California, or anywhere in the US for that matter, must undertake a new source review to determine the latest BACT, regardless of local regulations. We believe this paves the way for widespread adoption of the Ultera-based BACT determination in densely populated regions of the country that struggle with air quality. These areas are, not coincidently, power constrained and the primary markets for our products, which will further advance our competitive advantage."

About Tecogen
Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including natural gas engine-driven combined heat and power, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company is known for cost efficient, environmentally friendly and reliable products for energy production that, through patented technology, nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint.

In business for over 30 years, Tecogen has shipped more than 2,500 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com or contact us for a free Site Assessment.

Tecogen, InVerde, InVerde e+, Ilios, Tecochill, and Ultera are registered trademarks or trademarks pending registration of Tecogen, Inc.

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Tecogen Media & Investor Relations Contact Information:
John N. Hatsopoulos
P: (781) 622-1120
E: John.Hatsopoulos@Tecogen.com

Jeb Armstrong
P: (781) 466-6413
E: Jeb.Armstrong@Tecogen.com

Source: Tecogen, Inc.

Released March 20, 2018