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American DG Energy Inc. announced an agreement to provide an On-Site Utility solution to Lutheran Crossings Enhanced Living in Moorestown, NJ.

American DG Energy, partnering with Morrison Senior Living’s CommunityWorks of Atlanta, GA, will produce heat, domestic hot water and electricity. The CHP system will offset 377 tons of carbon annually, the company said.

Lutheran Crossings will receive a portion of its energy from a Tecogen 75 kW combined heat and power system. The system will be owned and operated by American DG Energy, and the agreement will provide American DG Energy with a revenue value of approximately $1.3 million over the 15-year contract.

Lutheran Crossings will pay only for the energy used by the facilities and avoid all capital, installation and operating costs of the system.

“The cogeneration opportunity that Morrison’s CommunityWorks provided to Lutheran Crossings allowed the community to jump decades ahead of their competitors in terms of energy use and savings,” said National Project Manager for Morrison’s CommunityWorks Ken Waddington. “Lutheran Crossing’s cogeneration system reflects the new standard to which all other senior living communities should strive to achieve.”

Lutheran Crossings provides assisted living and sub-acute rehabilitation.