Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation (OTCQB: CRGE)(Frankfurt:9CE ) signed a Memorandum of Understanding with Aurobindo Agro Energy Private Limited to acquire an 8.5MW biomass power plant located in Klayarkoil, Tamilnadu. Following the acquisition Clenergen will be operating 55.3MW of power generating plants in India, with projected annual revenues of $50 million and gross earnings estimated at $12 million.
The plant has a license to generate up to 21MW of electricity on site, which includes 50 acres of land to support the expansion. The plant is expected to generate revenue of US$6.5 million per annum with an EBITA of $2.5 million. The power plant is located in a region where local biomass (Prosopis Juliflora) is available year round. Clenergen has already secured future power sales contracts with corporate clients such as Coca Cola India and Tata coffee at an average price of US$ 14 cents per KW.
Commenting on the acquisition, Mark Quinn, Chairman and CEO said, “The power plant location is ideally located for the supply of local biomass which will provide operating cost efficiencies and increased profitability. The plant was granted a license to expand to 21MW by the State Government in 2006 and has sufficient supplies of local biomass to support the scale up of the operation. Within 30 km of the plant there is available over 1,300 acres of land that can be sub let to support the cultivation of energy crop plantations”.