Clenergen, based out of Florida is a recent entrant in the biomass based IPP space and has rapidly been signing on new projects. The company in December last year had announced the signing of an agreement, to Operate a 27MW Biomass Power Plant that is expected to be fully operational by first quarter 2011.
The company had earlier 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. The company had been in the news in May last year for acquiring 5000 acres on a long lease for a 32 MW project and had gotten into contracts for plantation trails for the same.
Clenergen Corporation (OTCQB:CRGE)(FRANKFURT:9CE) announced today that it has signed an agreement to secure $8 million in working capital and project specific financing.
Project financing for gasification projects with National Power Corporation on Romblon Island in the Philippines and Yuken India Limited will increase Clenergen’s generating capacity to 51.8MW by December 2011, generating a projected $44.0 million per annum revenue with an EBITDA of $9.7 million on an annualized run rate basis.
$2.5 million will be applied towards bulk purchasing of feedstock for the existing 18MW and 27.3MW power plants. which will result in a reduction in operating costs and increased profitability.
Funds will be allocated to upgrade the 1.5MW Anaerobic Digestion power plant to 2.5MW through the addition of a 1MW gas engine. This in turn will generate approximately 40 tons per day of compost as a result of using chicken litter as a feedstock. The compost will be used as a fertilizer on Clenergen plantations, with the excess being sold into the marketplace.
Commenting on the announcement, Mark Quinn Executive Chairman of Clenergen said “execution of our gasification projects in India and Philippines is a major milestone for the company. We will be able to demonstrate our captive power model for both mining and manufacturing companies, as well as providing turnkey rural electrification projects using biomass from designated energy crop plantations. Working capital for our existing power plants will increase our bottom line profits through bulk purchasing and importation of biomass from South East Asia”.