Florida based American company Clenergen(otcqb:CRGE) has been in the news a few months ago for acquiring 5000 acres on a long lease for a 32 MW project and had gotten into contracts for plantation trails recently.
A couple of weeks back, Clenergen announced the commencement of the full power generation of their 18MW combustion steam technology plant situated in Tamil Nadu.
Clenergen is also one of the first American companies in India, that has undertaken Bio-fuels and plantations with agronomy management services from local universities and biotech companies in India.
Biomass has enormous potential in India and as the ability of the technology to accept various feed stocks as bio fuels increase, the potential is going to further improve in a country like India that was a diverse availability of feedstock and feedstock cultivation for a particular purpose always poses price challenges and risks.
According to this announcement, Clenergen has entered into an agreement with Yuken India Limited to Install a 4 MW/h Gasification Power Biomass Plant operating on gas engines at their manufacturing facility in Bangalore, India.
Yuken India Limited was set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, for the manufacturer of oil hydraulic equipment.
Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, shall enter into a minimum 15 years Power Purchase Agreement (PPA) to supply Yuken up to the 2.5MW/h, with the balance of electricity generated being sold to the National Grid System. The 4 MW/h biomass power plants will be installed and operational within 10 months upon signing of the PPA.
Clenergen India will lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. After 10 years of breeding and fertilization programs, the bamboo is produced from tissue culture, resulting in an asexual, non-invasive, non-flowering plant which a lifespan of up to 50 years.
If the leasing of land happens, this will be the second such plantation by Clenergen in India where local players have traditionally faced huge problems in such land acquisitions, leasing and plantations and the model followed by Clenergen will be something worth following.