Propell Energy / Sandri Press Release

For Immediate Release
April 20, 2010

New England Wood Pellet, The Sandri Companies Announce Strategic Partnership and Sale of Propell Energy

Jaffrey NH and Greenfield MA – New England Wood Pellet LLC (NEWP) and The Sandri Companies today announced a formal strategic partnership between the two companies, as well as the acquisition by Sandri of NEWP’s commercial pellet boiler business, Propell Energy.

With manufacturing plants in New Hampshire and New York, NEWP is the largest manufacturer and distributor of wood pellet fuel in the northeastern United States. Sandri is a family-owned and operated fuel distributor headquartered in Greenfield, Massachusetts. They offer a full array of energy related products and services throughout the Northeast including: motor fuels, heating oils, lubricants, waste-oil furnaces, installation and repair of heating and cooling appliances for commercial and residential applications, and a variety of renewable energy products.

Central to the partnership is Sandri’s acquisition of NEWP’s Propell Energy subsidiary. Propell was founded in 2008 to market commercial and industrial scale pellet boilers for heating schools, office buildings, apartment complexes and other large buildings. Propell also provides economical bulk pellet delivery to large commercial accounts. Sandri will fold Propell Energy into its emerging renewable energy division. Sandri’s renewable energy group will be led by Jake Goodyear, president of Propell Energy.

“We are pleased to welcome Propell into the Sandri family,” commented Tim Van Epps, president of The Sandri Companies. “We are extremely enthusiastic about advancing the widespread adoption of pellets for heat. The acquisition of Propell and the strategic partnership with New England Wood Pellet will increase the speed at which we are able to do so.”

“We view this as a tremendously important and strong alliance of strategic interests,” said Steve Walker, president and CEO of NEWP. “We believe the northeast is poised for significant growth in commercial scale central heating using renewable low-carbon pellet fuels. Sandri has the capacity and resources to help advance this sector, as well as an 80 year history of servicing customers.”

The partnership between NEWP and Sandri also involves a multi-year exclusive supply agreement in which Sandri will buy and resell bulk pellet fuels exclusively from NEWP for resale to residential and commercial customers. The two companies also recently partnered to secure a $3.2 million dollar grant from the Massachusetts Department of Energy Resources to install numerous commercial pellet boilers in western Massachusetts, as well as increase the use of high-efficiency pellet boilers at the residential scale.

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Sandri

Sandri of Greenfield MA ( www.sandri.com ) is a family owned and operated full-service energy provider. They provide a variety of home heating fuels including: fuel oil, kerosene, propane, and wood pellets to thousands of customers throughout western Massachusetts. Sandri has a full staff of well trained and certified energy technicians that provide 24-7 service and maintenance. Leveraging their vast knowledge and experience in energy related products Sandri has recently begun to build a renewable energy division offering solar hot water installations, wood pellet fuel and heating systems, and photovoltaic installations.

New England Wood Pellet

New England Wood Pellet LLC ( www.pelletheat.com ) is the largest manufacturer and distributor of sustainably-sourced wood pellet fuel in the northeastern United States, with plants in Jaffrey, New Hampshire and Schuyler, New York and a new state-of-the-art facility under construction in Deposit, New York. Founded in 1992, NEWP is one of the five largest manufacturers of pellet fuel in the United States. Propell Energy ( www.propellenergy.com ), formerly a wholly owned subsidiary of NEWP, sells, installs and services commercial and industrial high efficiency pellet boilers for heating schools, office buildings, apartment complexes, hospitals etc. Propell has partnered with two European manufacturers to provide the most efficient, cleanest burning pellet boilers available in the US market.

Propell Energy

Contact:
Charlie Niebling, NE Wood Pellet, 603 965 5434 • This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Tim Van Epps, The Sandri Companies, 413-834 7346 • This e-mail address is being protected from spambots. You need JavaScript enabled to view it