Anaergia Selected to Design, Build and Operate Organic Waste-to-Renewable Energy Project in San Diego County

System to provide renewable power, reduce wastewater utility costs, and cut greenhouse gas emissions for East County Advanced Water Purification facility.

BURLINGTON, Ontario—July 18, 2023 – Anaergia Inc. (TSX: ANRG) today announced it has been selected as the Energy Recovery Contractor for a new system that will produce renewable power from wastewater sludge at the East County Advanced Water Purification (East County AWP) facility now under construction in Santee, California. Anaergia anticipates the Energy Recovery project will also eventually digest food waste along with the wastewater sludge. Anaergia is expected to design and build the waste-to-renewable energy facility and provide long-term operations and maintenance after commissioning.

The East County AWP facility is part of an Advanced Water Purification Program that is a partnership among Padre Dam Municipal Water District, the City of El Cajon, the County of San Diego, and Helix Water District. The Program is expected to produce up to 11.5 million gallons per day of new local drinking water, enough to supply about 50,000 households for a year.

Anaergia’s project at the East County AWP is expected to produce renewable power from biogas created by anaerobically digesting wastewater solids and potentially locally-sourced organic waste. Anaergia plans to integrate a waste-to-renewable power system that includes a biogas conditioning system, combined heat and power (CHP) generation, as well as an optional receiving station with storage tanks for organic waste deliveries. These technologies will enable the East County AWP facility to make up to 3.1 megawatts of renewable electricity and heat, with potential for future expansion to 4.6 megawatts. The organic waste reception would provide a local outlet for recycling organic waste that is required to be diverted from landfills under California law. The law is designed to reduce planet-warming methane emissions, which are created when food and other organic wastes are landfilled.

“By including the technologies that create energy from organic waste, the East County AWP facility is doing the right thing for the environment and for the people it serves,” said Brett Hodson, CEO of Anaergia. “This project serves as a model for other facilities. It leverages proven technology, adds resilient infrastructure, and brings economic benefits to the utility. The biogas made from anaerobically digesting this waste will be recovered to generate renewable electricity and heat for on-site use, reducing dependance on electric utilities and cutting costs for these municipalities.”

“The Energy Recovery project would maximize the production, beneficial use, and value of biogas while delivering energy savings, infrastructure enhancements, and environmental and community benefits,” said Mark Niemiec, Director of the East County AWP. “To begin with, the AWP facility is creating a sustainable and local drinking water supply while reducing the region’s dependence on imported water. The Energy Recovery project will complement and enhance the sustainability and community resilience benefits provided by the AWP facility: the project will reduce the AWP facility’s use of fossil fuels, improve energy resiliency, and cut costs, which ultimately benefits our ratepayers.”

Anaergia’s energy recovery project complements other portions of the new East County AWP facility, including the facility’s anaerobic digesters, which are fitted with Anaergia’s OmniMix™ mixers, designed for co-digestion applications.

About Anaergia

Anaergia was created to eliminate a major source of greenhouse gases by cost effectively turning organic waste into renewable natural gas (RNG), fertilizer and water, using proprietary technologies. With a proven track record from delivering world-leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. Our customers are in the municipal solid waste, municipal wastewater, agriculture, and food processing industries. In each of these markets Anaergia has built many successful plants including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

For further information please see: www.anaergia.com

For media relations please contact: Melissa Bailey, Director, Marketing & Corporate Communications, Melissa.Bailey@Anaergia.com

For investor relations please contact: IR@Anaergia.com

Forward-Looking Statements

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Anaergia’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Anaergia’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in Anaergia’s annual information form dated April 10, 2023 for the fiscal year ended December 31, 2022 and the risks discussed in Anaergia’s MD&A dated May 11, 2023 for the first quarter of 2023. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.