Business & Finance
Business and Finance
Business and Finance
Fri, August 28, 2009
Thu, August 27, 2009 Clenergen Corporation: Clenergen Corporation (OTCBB: CRGE) to Commence Clean Energy Generation by December 2009 Following Acqui
NEW YORK, NEW YORK--(Marketwire - Aug. 27, 2009) - Clenergen Corporation (OTCBB:CRGE) through its wholly owned subsidiary Clenergen India Private Limited, that is to be acquired upon the acquisition of Clenergen Corporation Limited, a UK company, has submitted a bid to acquire the entire equity shareholding of United Biofuels Private Limited (UBP), which was accepted by their Board of Directors. UBP owns and operates a 1.5MW clean power generating facility through the process of anaerobic digestion of [ agricultural residue ] in Namakkal, Tamilnadu.
This facility uses the technology supplied by Entec Austria with two GE Jenbacher Gas engines with a total capacity of 1.5MW/Hr and is a National Demonstration Project for the Government of India. The transaction now requires the approval of India Renewable Energy Development Agency (IREDA), the principal lenders to the project. Clenergen have engaged Ernst and Young in India to carry out the due diligence. During the period of operation (2005-2007) the project was assessed for carbon credits for both power generation and methane capture by DNV.
Completion of the acquisition is scheduled for September 30th 2009. The unit, which had been closed down due to cash flow problems faced by the promoters, will be operational in full capacity in Q4 2009 and will be supplying power to the State Grid of Tamilnadu @ Rs.4.50 (US 9 cents approx) per KW/Hr. The Project Internal Rate of Return is projected above 50%.
The power plant is situated on 10 acres of land. Clenergen intends to upgrade the capacity of the unit to 6MW/Hr by an additional generation of 4.5MW/Hr through [ biomass gasification ] by installing a gasifier unit and additional engines in the same unit. The unit has an existing fully integrated power evacuation system connected to the local substation of the Tamilnadu Electricity Board. The [ biomass ] will be initially supplied by Contractors with whom Clenergen has already entered into long term supply contracts until such time as Clenergen proposed plantations in India commence supplies of the harvested biomass from its proprietary feedstock's.
Commenting on the proposed acquisition, Non Executive Group Chairman Dr Arvind Pandalai said "the acquisition of United Biofuels provides an immediate platform for generating renewable energy and revenue for the Company".
About Clenergen Corporation
Clenergen Corporation is a publicly listed company on the OTC stock market (symbol CRGE). Its acquisition target, Clenergen (UK), develops Clean Energy Generation projects to address the requirement for renewable and sustainable supplies of electricity. Clenergen (UK) installs and operates Distribution Environmental Power Systems (DEPS) and applies Plant Science to the cultivation of proprietary biomass feedstock's in order to provide sustainable supplies of [ clean energy ] to regional, independent clients and national grids. [ www.clenergen.com ]
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to our ability to complete the acquisition of Clenergen UK, or the acquisition of United Biofuels Private Limited, or the receipt of any required approvals.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with clean technologies; changes in the operating costs and changes in economic conditions and conditions in clean technologies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our current and periodic reports filed from time-to-time with the Securities and Exchange Commission.
