BWI: Clenergen’s Clean Energy Power Projects in India

Press release from Business Wire India
Source: Clenergen Corporation
Wednesday, October 21, 2009 11:00 AM IST (05:30 AM GMT)
Editors: General: Consumer interest, Environment; Business: Advertising, PR & marketing, Banking & financial services, Business services, Chemicals, Energy companies, Heavy industries
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Clenergen's Clean Energy Power Projects in India


Chennai, Tamil Nadu, India, Wednesday, October 21, 2009 -- (Business Wire India) -- The Chennai-based Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation (CRGE), a pioneer in clean energy generation, has announced it's plans for India in the area of setting up gasification technology based power plants.

In the first phase of its Clean Energy operations in India, Clenergen is in the process of setting up a 16MW power project in Tuticorin, Tamil Nadu and 64MW power plant in Karnataka.

Both these projects are based on the pyrolisis gasification technology and will operate on feedstocks harvested from plantations set up by Clenergen for cultivation of it's own scientifically researched and developed species of grass and trees.

Clenergen Corporation India Private Limited, headquartered in Chennai Tamilnadu, India, a wholly owned subsidiary of Clenergen Corporation is a commercial vehicle created after a significant research and development program to (1) produce high-density, short-rotation biomass crops on a commercial scale at a cost of production equivalent to or less than the price of coal (measured in energy terms - MMBtu) using a proprietary integrated farming model, and (2) to produce power, steam, hydrogen, chemicals and other important products through advanced gasification and steam technologies.

Feedstocks:

Clenergen have contractually secured access to the feedstock required for cultivation. One is a species of Grass named `Beema Bamboo' which has been developed and test planted for Clenergen by its partner Growmore Biotech Limited, Hosur, Tamilnadu. The results which have been validated, indicate a yield of over 60 MT per acre after 4 years of cultivation on a planting density of 1000 plants per acre and a system of irrigation to provide the water.

The harvestable yield is available from the second year of its plantation (averaging 20 tones) and the greatest benefit this species can provide is its ability to sprout an average of 10 shoots every year from the third year of its plantation yielding a biomass of over 60 MT per acre annually. The life of this species of bamboo can be well considered as perennial with a life span of over 50 years.

The other is a species of trees native to China and parts of Asia called `Paulownia'. One of the Directors of Clenergen has specialized in plantations of this species of tree since 1991. Extensive research has been done on this species of trees and validated records indicate that this tree can potentially yield a biomass equivalent of over 40 MT every year. The Tree can be coppiced at least 8 times which means that for 9 years no re-plantation is required and the tree would re-grow back from its stump with multiple shoots being generated from its first coppicing.

Clenergen have tested the biomass of these species for its thermal characteristics and gasification efficiency and both have proven to be highly graded biomass materials with calorific values of between 4000 and 4500 Kcal/Kg.

Polyploidisation:

In addition to the yields of biomass available from traditional cultivation when applying plant science to the mother stock of Paulownia through a process named polyploidisation, there is a rapid increase in the rate of growth of the trees that results is an increased yield of biomass per acre after 12 months from its application.

Clenergen's application of polyploidy technology to selected strains of tree species is achieved through a selective breeding process where plant stock is genetically pre-screened for specific polyploidy chromosomes. Quite simply, the tree (itself a solar system through the process of photosynthesis) grows leaves (solar panels) which are 50% larger than a standard variety of the same tree species, thereby enabling it to more efficiently collect solar energy and CO2 and, accordingly, grow more rapidly.

This optimization results in a 30-40% increase in the normal growth rate of the tree. Further, no genetic engineering is utilized, as polyploidy is a naturally occurring evolutionary event. Importantly, the resulting enhanced photosynthetic process enables the trees to consume larger quantities of carbon creating a carbon "sink" as they grow faster and more efficiently produce and release oxygen into the atmosphere.

Polyploidisation is a scientific process first discovered in the 1970's which is well established in the agri-food business. Once applied to the Paulownia mother stock, a new species is created of which Clenergen has named "Marjestica and retains all the Intellectual Property and Plant Breeding Rights to this new species of Paulownia.

Agreements for Polyploidasation:

Clenergen and Growmore Biotech have signed an MOA for the supplies of micro propagated saplings of its elite strain of Beema bamboo for mass cultivation in Tamilnadu and Karnataka.

Clenergen has also entered into a License and Research and Development Agreement with Arbour Technologies Limited in view of supplying polyploidy mother stock of Paulownia for field trials on 3 parcels of land in Tamilnadu, India. Arbour laboratories are a leading organization in the field of polyplpoidisation and their work has been verified by the Queensland and Brisbane Universities to quantify the increased growth of its Paulownia as a result of applying the polyploidy process.

Gasification Technology:

The electricity is generated from the use of proven gasification technology which disintegrates the biomass and releases syngas which provides the source of power for gas turbine generators or can be burned to erase all tar and release steam as a source of power for steam turbine generators, depending upon the technology chosen. It's high levels of efficiency and energy conversion creates a consistent source of electricity production without generating any carbon emissions from the process. As a result, the fossil fuel displacement value of the energy produced generates a carbon emission credit (CER's), which the value of such can be applied towards offsetting the cost of production.

Clenergen takes a unique position of approaching the issue from an agronomy and plantation management perspective rather than from one of engineering. Clenergen has achieved a vital component in the future of renewable power generation, the ability to deliver a standard, uniform virgin biomass on a commercial scale at regular intervals over a long period of time."

16MW Power Project:

The land for the 16MW power project has been acquired on long lease. Of the 4000 acres of plantation lands required for the cultivation of the feedstocks, 800 acres has already been acquired on long lease in Tirunelveli District while a further 1200 acres is in advanced stages of land survey and will be concluded by the end of October 2009. Arrangements are being made for the acquisition of the balance 2000 acres in Tirunelveli District.

In the interim period until the plantations are completed on the lands taken on lease and the harvests of the feedstcoks come in, Clenergen has entered into long term supply contracts for wood biomass. The supply of power from this plant and also the plant proposed to be set up in Karnataka has been contracted to PTC India Limited under a 15 year PPA.

Financial Highlights:

The total project cost is US$ 236.47 million (Rs.1135.05 Crores) out of which US$ 82.76 million equivalent to Rs. 397.27 Crores is required as equity for the project. Clenergen, after providing for contributions from the parent company and private placement of shares, is proposing to raise $ 65 million equivalent to Rs. 312 crores through a floatation on the Indian Markets . The long term debt component is US$ 153.70 million (Rs.737.78 Crores approx) and Ernst and Young Pvt Ltd have been mandated to raise the debt for the projects.

About Clenergen Corporation

Clenergen Corporation is a publicly listed company on the OTC stock market (symbol CRGE). Clenergen develops Clean Energy Generation projects to address the requirement for renewable and sustainable supplies of electricity. Clenergen Installs and operates Distribution Environmental Power Systems (DEPS) and applies Plant Science to the cultivation of proprietary biomass feedstock's in order to provide sustainable supplies of clean energy to regional, independent clients and national grids. For more information, please visit : www.clenergen.com.

Notice Regarding Forward-Looking Statements

This press release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to our ability to generate renewable electricity on a large scale and to establish our company as one of the leading biomass energy generating companies globally.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with clean technologies; changes in the operating costs and changes in economic conditions and conditions in clean technologies. These forward-looking statements are made as of the date of this press release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our current and periodic reports filed from time-to-time with the Securities and Exchange Commission.


CONTACT DETAILS
Jessica Hatfield, Communications Director, Clenergen Corporation, 0044 (0)207 739 0028, jhatfield@clenergen.com

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