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Clenergen Corp. (CRGE.OB) Moves Forward with Biomass Power Projects in India

Clenergen Corp., developer of clean biomass power generation systems using specifically grown biomass crops, is actively engaged in developing its first project in India. The plan is to develop a 10 megawatt/hour power plant in Namakkal, Tamilnadu, on the southern tip of India. The plant will be fed by a biomass gasification facility using biomass supplied by Clenergen’s plantations in Tamilnadu.

The first step was the agreement to allow Clenergen to acquire an existing 1.5 megawatt/hour biomass power generating plant in Namakkal. The plant uses anerobic digestion technology to process agricultural waste using GE Jenbacher Gas engines. The unit, which successfully demonstrated the use of the technology as part of India’s National Demonstration Project, was shut down earlier due to cash flow constraints related to the sale of power to the State Government Utility. More favorable tariffs have since been put in place, and an agreement for acquisition was finalized between Clenergen and shareholders of the plant.

The plan now is to ramp up the plant’s capacity to 10 MW/hr by setting up a biomass gasification facility, using biomass supplied initially from already contracted agricultural waste sources, but eventually from proprietary feedstock from Clenergen’s plantations in Tamilnadu. The unit will be entirely carbon neutral, and has already been assessed for carbon credits, both for electricity production and methane capture. It is expected to generate annual net revenue of $1.2 million.

Clenergen’s plantations are located in Tuticorin and Tirunelveli districts in southern India, and total 4,000 acres, of which 1,200 acres are earmarked for cultivation of bamboo and 2,800 acres for paulownia, two carefully researched and chosen biomass crops.

Clenergen is also setting up two additional power projects in India, a 16 MW/hr plant in Tamilnadu, and a 64 MW/hr plant in Karnataka, also in southern India.

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