Exhibit 99



         Environmental Power Corporation's Microgy Subsidiary
            Reports Additional Digester Project Agreement

   PORTSMOUTH, N.H.--(BUSINESS WIRE)--Jan. 20, 2004--Environmental
Power Corporation (OTCBB: POWR), a leader in the renewable energy
industry with proprietary technology to convert manure into
electricity, announced that its subsidiary, Microgy Cogeneration
Systems, Inc. ("Microgy"), had signed an additional agreement with an
entity owned by Norswiss Dairy, Inc. of Rice Lake, Wisconsin
("Norswiss"), pursuant to which Norswiss will purchase a digester
system based on Microgy's proprietary, highly efficient anaerobic
digestion technology to process manure produced by their dairy
operations. This agreement follows the recent signings in January of
similar agreements with Wild Rose Dairy and Five Star Dairy, bringing
to three the number of Microgy's digester systems under agreement for
purchase.
   Like the earlier agreements, the Norswiss agreement is part of
Microgy's continuing efforts under its relationship with Dairyland
Power Cooperative ("Dairyland"). The Dairyland Board of Directors has
approved the Norswiss project. Microgy's agreement with Norswiss also
provides Microgy with the right to operate and maintain the digester
for the duration of its operational life.
   Andy Livingston, Microgy's President, stated, "The execution of
the agreement with Norswiss shows that Microgy's execution on its
business plan is gaining momentum. There are now three farms which
have seen the advantages of adopting our digester technology, and we
expect many more to follow."

   ABOUT ENVIRONMENTAL POWER CORPORATION

   Environmental Power Corporation (OTCBB: POWR) is an
entrepreneurial energy company established in 1982 with annual
revenues in excess of $50 million. The company focuses on
environmentally sound power generation and anaerobic digestion
systems. For more information, please visit the company's web site at
www.environmentalpower.com.

   CAUTIONARY STATEMENT

   The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for forward-looking statements. Certain
statements contained in this press release such as statements
concerning planned manure-to-energy systems, our sales pipeline, our
backlog, our projected sales and financial performance, statements
containing the words "expects," "estimates," "anticipates,"
"believes," "projects" and variations thereof, and other statements
contained in this press release regarding matters that are not
historical facts are forward looking statements as such term is
defined in the Act. Because such statements involve risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are not
limited to, uncertainties involving development stage companies,
uncertainties regarding project financing, the lack of binding
commitments and the need to negotiate and execute definitive
agreements for the construction and financing of projects, financing
and cash flow requirements and uncertainties, difficulties involved in
developing and executing on a business plan, difficulties and
uncertainties regarding acquisitions, technological uncertainties,
risks relating to managing and integrating acquired businesses,
unpredictable developments (including plant outages and repair
requirements), the difficulty of estimating construction, development,
repair and maintenance costs and timeframes, the uncertainties
involved in estimating insurance and implied warranty recoveries, if
any, the inability to predict the course or outcome of any
negotiations with parties involved with Environmental Power's or
Microgy's projects, uncertainties relating to general economic and
industry conditions, the amount and rate of growth in expenses,
uncertainties relating to government and regulatory policies, the
legal environment, intellectual property issues, the competitive
environment in which Environmental Power and Microgy operate and other
factors, including those described in the Company's Quarterly Report
on Form 10-Q for the quarter ended September 30, 2003, as well as
other filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date that they are made.
Environmental Power undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

    CONTACT: Investor Contact:
             Environmental Power Corporation
             Kam Tejwani, 603-431-1780
             ktejwani@environmentalpower.com
             or
             Media Contact:
             Environmental Power Corporation
             Kate Dolan, 603-431-1780
             kdolan@environmentalpower.com