American Renewables Sells a 100 MW Biomass-Fueled Renewable Power Project
to Southern Power

FOR IMMEDIATE RELEASE

BOSTON, October 9, 2009 - American Renewables LLC has agreed to sell its Nacogdoches Power LLC biomass project, located in Sacul, TX, to Southern Power, a subsidiary of Southern Company. Pursuant to the agreement, Southern Power will own, construct and operate the 100 MW biomass facility; American Renewables will provide consulting and advisory services to help ensure a smooth transition and the successful construction of the project. Groundbreaking is expected in the fall of 2009 and commercial operation is projected for the summer of 2012.

"We are glad that Southern Power has chosen Nacogdoches Power as its first investment in a dedicated biomass facility. This transaction will ensure the successful construction and operation of the Nacogdoches Power project and includes many economic and environmental benefits for Nacogdoches County and the residents of Austin, TX." stated Jim Gordon, Chief Executive Officer of American Renewables.

Nacogdoches Power will utilize a variety of biomass materials—including forest residue from the surrounding areas, wood processing residues and clean municipal wood waste—to generate renewable energy. The plant's output is committed through a 20-year power purchase agreement with Austin Energy, the municipal utility owned by and serving Austin, Texas. When completed, the project will be one of the largest biomass-fueled electric generating facilities in the U.S.

"The sale of the Nacogdoches Power project to Southern Power will allow American Renewables to devote additional resources to the development of its biomass projects in later-stage development—including those in Gainesville, FL and Hamilton County, FL—as well as to more aggressively pursue additional opportunities" stated Gordon. He concluded, "This transaction enables American Renewables to aggressively pursue its goal of placing significant biomass generation assets into operation in the United States."

American Renewables develops, builds and operates clean energy facilities that utilize biomass materials as fuel. American Renewables brings together the successful track records and project development, operations, energy investment and asset management expertise of its three partners: BayCorp Holdings, Energy Management, Inc. and Tyr Energy. In addition to the Nacogdoches Power project, American Renewables is developing the Gainesville Renewable Energy Center in Gainesville, FL and the Hamilton County Renewable Energy Center in Hamilton County, FL. All three facilities are 100-MW biomass energy facilities. Visit our website at www.amrenewables.com.

Southern Power is among the largest wholesale energy providers in the Southeast, meeting the electricity needs of municipalities, electric cooperatives and investor-owned utilities. The company owns and operates more than 7,500 megawatts with facilities in Alabama, Florida, Georgia and North Carolina and has an additional 820 megawatts committed to construction in North Carolina and Texas. Visit the Southern Company website at www.southerncompany.com.