Clenergen Corporation (otcqb:CRGE)(frankfurt:9CE) announced today that that it has entered into a binding license agreement with FUTENCO AG after three years of development of commercial projects in the Philippines, Guyana, and Ghana, whereby Clenergen will be licensing its intellectual property rights pertaining to plant science and other exclusive third party exclusive technology licenses. FUTENCOAG is committed to the development and execution of renewable energy projects worldwide and distribution of biomass feedstock worldwide. FUTENCO AG’s has strategic alliances and partnerships which allow them to develop and execute projects in the most efficient manner in multiple venues throughout the world. In addition, FUTENCO plans to float on the Boerse Frankfurt stock market within the next 12 months.
Futenco strategic partners include CIYCOR, a worldwide renewable energy and construction company, whose team has executed over $1.3 billion of contracts on behalf of the US Government and US Armed Forces in addition to multiple other private contracts. CIYCOR specializes in project financing solutions in order to execute renewable energy contracts to both private clients and the US government and is currently in the process of developing over 1000 MW of renewable energy projects across the world.
The license agreement will provide project financing for all of Clenergen’s projects in the Philippines, Guyana and Ghana and the formation of a $30 million renewable energy fund, designated for the cultivation of energy crop plantations throughout the emerging markets. Clenergen will retain the rights to own a majority stake in each of the projects and joint ventures formed within the regions which are suitable for the cultivation of energy crops, such Malaysia, Saipan, Guam, Brazil, Bahamas, Dominican Republic, Haiti, Puerto Rico, Sri Lanka, Malaysia and Guatemala. Clenergen will now fast track the development of the Clenergen brand worldwide by making a paradigm shift in its business model by becoming the worldwide supplier and distributor of biomass for use as fuel conversion to electricity, Pyrolysis oil, and wood pellets for both domestic use and export to co-fire with coal power plants in Europe, USA, South Korea and Japan, in order to assist them in lowering their carbon emission.
On the 5th September 2011, Clenergen agreed terms to sell Clenergen India Private Limited to private Asian Investors, in order to allow the Company to concentrate on the cultivation of energy crops in India, under a new biomass subsidy program introduced on August 8, 2011 by the Indian Union Government. The Company has now chosen to decline other previous offers of financing as announced in April 2011, along with the acquisition of additional combustion steam power plants in India which was announced in June 2011 and will focus on its core business model, biomass feedstock production, sale and distribution.
Clenergen will now be the owner, repository and developer of all intellectual property, technology licensing and acquirer of all future technologies through acquisition, strategic alliances and joint ventures. The company’s primary income streams will be through development fees, license fees and dividends from each and every renewable energy project executed using Clenergen IP and exclusive technology licenses. Subsequently the Board of Directors will be restructured with David Sonnenberg, Sanil Kumar, Pamela Peeters and Alex Worrall stepping down from the Board, with Mike Starkie being appointed as Non Executive Chairman and Dr Arvind Pandalai as a Non Executive Director of Clenergen Corporation.
Commenting on the change in direction, Mark Quinn, Chief Executive Officer of Clenergen Corporation said “After 10 years of research and development in the field of feedstock for renewable energy, I strongly believe that our shareholders will receive high returns from this strategic change in our business model. In India, the company can now focus its core business which is the cultivation, supply, sale and distribution of biomass feedstock to produce renewable energy. This change allows many of our projects that are in different stages of development around the world to be fully funded, without incurring further equity dilution or debt at the parent level. I strongly believe that this is the best business model to enable Clenergen to grow its brand name throughout the worldwide.