A 1,500 MW Combined Renewable Natural Gas and Biomass Power Plant and Water Supply Project Valued at Up to $1.66 Billion; Azure Holds a 10% Equity Stake
Fort Lauderdale, FL, Oct. 23, 2026 (GLOBE NEWSWIRE) — Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME), a diversified holding company and owner of Azure Energy (“Azure”), a strategic advisor to renewable power plant developers, and SemiCab Holdings, an AI-enabled logistics provider, today provided an operational update on a 1,500 MW combined renewable natural gas and biomass power plant project in Mississippi. Engineering for the project is nearly complete, and it is being marketed to potential tenants, including data centers and advanced manufacturing facilities, that would co-locate on site.
The $7.34 billion project will sit on a 1,664-acre site in north-central Mississippi. It combines 500 MW of net generation from a biomass pyrolysis-to-power (Azure P2P™) plant, 1,000 MW of natural gas generation, and a 150,000-ton absorption chilled water plant. All output will be delivered behind the meter to a single co-located large-load tenant, such as a hyperscale data center or advanced manufacturing facility. The campus is expected to become operational in three phases, with the first phase delivering approximately 250 MW of power within 18 months of notice to proceed. The facility is expected to reach its full generation capacity within 54 months of notice to proceed. Local development partners have secured feedstock through a right of first refusal and a memorandum of understanding. Phase II engineering is scheduled for completion in October 2026, and the Independent Engineer report is due in December 2026.
Azure expects to earn approximately $5 million in fee income in 2027 under the current scope of engagement, with additional fee income opportunity under negotiation. Azure currently holds a 10% equity stake in the project. The project has two clearly defined paths to unlock value. First, if the project is completed as scheduled, Azure is projected to earn approximately $40 million in EBITDA annually from the project once it reaches full operation.
Alternatively, the project could be sold upon the completion of final permitting in early 2027, with an estimated value of up to $1.66 billion based on prevailing market conditions. If sold as valued, the gross proceeds due to Azure would be approximately $166 million for its equity stake, plus additional fee income for managing the transaction. The Company expects to select capital markets partners before the end of Q4 2026 to evaluate offers. Full marketing of the project is expected to begin in early Q1 2027.
“Our Mississippi project is large in scale and in the final stage of preparation for market,” said Andrew Thompson, CEO of Algorhythm Holdings. “Potential capital markets partners have responded well, and we are now deciding how best to launch a comprehensive marketing process.”
“Shovel-ready sites with power and water already solved are increasingly scarce,” added Mr. Thompson. “This site offers a 1,500 MW power solution using biomass and renewable natural gas, with engineering nearly complete and water supply addressed. We expect strong interest from data center and advanced manufacturing tenants in the coming months.”
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a holding company with two primary assets: Azure Holdings and SemiCab Holdings. Azure Energy provides strategic and technical advisory services for renewable biomass power generation infrastructure. Azure launched in 2025 and has already secured equity participation valued at over $220 million in net present value through multiple power plants under development in the US. The Company has significant fee-income consulting revenues under multi-year contracts and is generating growing, positive EBITDA. For additional information, please go to: http://www.azure-energy.co.
Algorhythm Holdings, Inc. also owns and operates SemiCab, an AI-enabled logistics software provider. Since 2020, SemiCab has enabled major retailers, brands, and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML and advanced optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com.
Investor Relations Contact
Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “expects,” “anticipates,” “believes,” “will,” “will likely result,” “will continue,” “plans to,” “potential,” “promising,” and similar expressions. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation, Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
