Business & Finance
Business and Finance
Business and Finance
Wed, October 21, 2009 Clenergen Corporation: Clenergen Corporation (OTCBB: CRGE) Closes Terms to Acquire 1.5MW Biomass Power Plant in Tamil Nadu, Ind
NEW YORK, NEW YORK--(Marketwire - Oct. 21, 2009) - The Chennai-based Clenergen Corporation India Private Limited, a wholly owned subsidiary of Clenergen Corporation (OTCBB:CRGE), has reached agreement on the terms to acquire a 1.5MW/Hr biomass power plant in Namakkal, Tamilnadu which will be operational by yearend 2009.
This power plant is recognized as one of India's National Demonstration Projects. The plant was shut down in 2007 due to operational cash flow constraints and its inability to remain profitable at a low tariff rate. However, under a Power Purchase Agreement between Power Trading Corporation of India Limited (PTC) and Clenergen India Private Limited, a higher tariff rate has now been agreed The unit is expected to generate net revenue of approximately US$1 million in its first year of operation. In the first phase of its operations in India, Clenergen will ramp up the capacity of this power plant to 10MW/Hr while installing two new biomass power projects: a 16MW/Hr in Tuticorin Tamilnadu and a 64MW/Hr in Karnataka. The total project cost of the new plants has been estimated at US$236 million. Clenergen's Tuticorin power plant is slated to be in commercial operation in the last quarter 2010. The company is proposing to raise US$83 million in equity financing from the Indian stock markets. The 16MW/Hr power plant will require 4,000 acres of land to cultivate biomass feedstock required for its 24/7 operation, of which 800 acres has already been secured under sublease. Local supplies of wood chips will be contracted until the cultivated feedstocks reach first harvest.
Clenergen has identified an efficient system of power generation using gasification technology/gas turbines generators and power generation through Pyrolisis/steam turbine generators. These systems can produce power, steam, hydrogen, chemicals and other important products through advanced gasification and Pyrolisis/combustion steam technologies. The company also produces high-density, short-rotation biomass crops on a commercial scale at a cost of production equivalent to or less than the price of coal (measured in energy terms - MMBtu) using a proprietary integrated farming model.
Announcing the company's plans for India here at a press conference, Dr. Arvind Pandalai, Non Executive Group Chairman, said, "The Namakkal unit, which is entirely carbon neutral, successfully demonstrated the 'anaerobic digestive technology' to process agri-biomass to renewable energy. The unit has already been assessed for carbon credits."
Dr Pandalai added, "Clenergen new biomass power plants at Tamil Nadu and Karnataka will be based on the feedstock of 'Beema Bamboo', a grass species, and 'Marjestica', a micro propagated species of Paulownia native to China and parts of Asia. The company has partnered with Growmore Biotech Limited, Hosur, for the production and supply of the micro propagated Beema Bamboo. Additionally, Clenergen has licensed a Tree Adaption Process that increases the growth rate of Majestica by up to 40% and will be conducting field trials of the improved strain in Tamilnadu in the first quarter 2010.
About Clenergen Corporation
Clenergen Corporation is a publicly listed company on the OTC stock market (symbol CRGE). Clenergen develops Clean Energy Generation projects to address the requirement for renewable and sustainable supplies of electricity. Clenergen 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.
Notice regarding forward looking statements
This press release 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 generate renewable electricity on a large scale and to establish our company as one of the leading biomass energy generating companies globally.
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 press 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.
