Azure Energy Prepares 1,500 MW Mississippi Power Project for Market

Azure’s potential returns span projected operating earnings or a project sale, with final permitting still ahead.

Rhea-AI Summary

Algorhythm Holdings (NASDAQ: RIME) is preparing its Azure Energy subsidiary’s 1,500 MW Mississippi power project for marketing to potential co-located tenants. Engineering is nearly complete, and Azure holds a 10% equity stake. The company expects approximately $5 million in fee income in 2027 under the current engagement.

The campus would combine biomass and natural gas generation with chilled water supply. Initial power delivery is expected within 18 months of notice to proceed, with full capacity within 54 months. Azure projects approximately $40 million in annual EBITDA at full operation if completed as scheduled. Alternatively, a sale after final permitting in early 2027 could value the project at up to $1.66 billion, depending on market conditions, yielding approximately $166 million in gross proceeds for Azure if sold as valued. Full marketing is expected in early Q1 2027.

8 points · 3 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Azure expects approximately $5 million in 2027 fee income under its current engagement. 2× market cap
• Major point. Forward-looking: it has not happened yet and may not happen.Azure projects approximately $40 million in annual EBITDA at full operation if completed as scheduled.
• Major point. Forward-looking: it has not happened yet and may not happen.Potential sale valuation of up to $1.66 billion implies approximately $166 million gross proceeds for Azure if sold as valued. 65× market cap
• Moderate pointAzure’s 10% equity stake provides participation in the Mississippi power project.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional fees are under negotiation, with further fee income possible for managing a sale.

3 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Planned 1,500 MW campus combines 500 MW biomass generation, 1,000 MW natural gas generation and chilled water supply.
• Minor point. Forward-looking: it has not happened yet and may not happen.Project engineering is nearly complete; Phase II completion is scheduled for October 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Capital markets partner selection is expected before Q4 2026 ends; full marketing is expected early Q1 2027.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.A potential sale follows final permitting in early 2027; estimated valuation depends on prevailing market conditions.
• Moderate pointAll output is designated for a single co-located large-load tenant; the project is being marketed to potential tenants.
• Moderate pointFeedstock arrangements comprise a right of first refusal and memorandum of understanding secured by local development partners.
• Minor point. Forward-looking: it has not happened yet and may not happen.Power delivery depends on notice to proceed: approximately 250 MW within 18 months, full capacity within 54 months.
• Minor point. Forward-looking: it has not happened yet and may not happen.The Independent Engineer report remains due in December 2026.

News Explained

The disclosed design sends all generation behind the meter to a single co-located large-load tenant, rather than multiple power customers, while Azure Energy is marketing the project to potential tenants.

Argus 15 min delay 61 alerts

-10.02% vs previous close $0.11 last price 687.5x rel. volume Open Argus

Details

Market move: RIME -10.02% vs previous close. Mississippi power project update

+45.7% Peak Tracked

-28.2% Trough Tracked

$0.11 – $0.19 Day Range

$2.31M Mkt Cap at Last Price

On Oct 23, the day this news came out, the latest delayed price for RIME is 10.02% below the previous close. Argus tracked a peak move of +45.7% during the session. Argus tracked a trough of -28.2% from its starting point during tracking. Our momentum scanner has recorded 61 alerts for this stock so far that day. The latest delayed price is $0.11. Relative volume is exceptionally heavy at 687.5x the average.

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Key Figures

Project generation capacity: 1,500 MW Project value: $7.34 billion Generation mix: 500 MW biomass; 1,000 MW natural gas +4 more

Project generation capacity

1,500 MW

Combined renewable natural gas and biomass power project

Project value

$7.34 billion

Project value stated in the article

Generation mix

500 MW biomass; 1,000 MW natural gas

Net generation components of the project

Azure equity stake

10%

Current stake in the project

First-phase delivery

250 MW within 18 months

From notice to proceed

Full-capacity timeline

54 months

From notice to proceed

Potential sale value

Up to $1.66 billion

Potential sale after final permitting

Key Terms

renewable natural gas, behind the meter, pyrolysis, ebitda

4 terms

renewable natural gas technical

"combined renewable natural gas and biomass power plant project"

Renewable natural gas is methane captured from organic waste—like landfills, farms, or wastewater—and cleaned to the same quality as conventional pipeline gas so it can be used for heating, electricity, or vehicle fuel. Investors care because it turns waste into a revenue-generating commodity, can qualify for carbon credits or government incentives, and can reduce a company's emissions profile, affecting long-term costs, regulatory risk, and market demand much like converting trash into sellable fuel.

behind the meter technical

"All output will be delivered behind the meter to a single co-located"

Energy generation or equipment located on a customer’s side of the utility meter, such as rooftop solar panels, battery storage, electric vehicle chargers or energy-saving controls. It matters to investors because it reduces the amount of electricity bought from utilities, can lower operating costs for businesses, change utility revenue patterns, and shift demand in energy markets—like a homeowner installing a rain barrel that cuts water bought from the city and alters suppliers’ sales.

pyrolysis technical

"biomass pyrolysis-to-power (Azure P2P™) plant"

Pyrolysis is a heat-driven process that breaks down organic or plastic materials into simpler gases, liquids and solid carbon by heating them in the absence of oxygen; think of it as controlled charring that captures useful byproducts instead of burning them to ash. Investors care because pyrolysis can turn waste into saleable fuels, chemical feedstocks or carbon-rich solids, create new revenue streams, cut disposal costs and qualify for environmental credits, all of which affect a project’s economics and sustainability profile.

ebitda financial

"Azure is projected to earn approximately $40 million in EBITDA annually"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What could Algorhythm’s Azure Energy receive from selling the Mississippi power project?

Azure could receive approximately $166 million in gross proceeds for its 10% equity stake if the project sells at the estimated valuation of up to $1.66 billion. A sale could occur upon completion of final permitting in early 2027, with valuation dependent on prevailing market conditions. Additional fee income could come from managing the transaction.

When could Algorhythm’s Mississippi power project begin delivering electricity?

The first phase is expected to deliver approximately 250 MW within 18 months of notice to proceed. The campus is expected to become operational in three phases and reach full generation capacity within 54 months of notice to proceed.

How large is the site for Algorhythm’s Mississippi power project?

The $7.34 billion project is planned for a 1,664-acre site in north-central Mississippi. Alongside its power generation facilities, it includes a 150,000-ton absorption chilled water plant.