Clenergen Corp. (CRGE) is “One to Watch”

By @ibtimes on

Clenergen is focused on generating clean energy to address the requirement for renewable and sustainable supplies of electricity. The company has assembled an experienced managerial, engineering and technical team capable of operating combustion steam, gasification, and anaerobic digestive biomass power plants. Clenergen has also established third party partnerships to achieve its business goals and enable it to meet or exceed its financial forecasts and projections.

The company has identified two fast growing species of tree and applied a proprietary Tree Adaption Process for rapidly increasing the growth rate 28-40%. This substantial growth rate will enable the production of an economically viable source of feedstock/biomass for creating a renewable source of electricity. Because the company will be using organic material not related to food production, it is able to produce clean, sustainable energy without endangering the food supply.

In Guyana (South Africa), Clenergen has entered into a 5,000 acre sub lease to cultivate Marjestica and Bamboo. Clenergen Corporation retains the right to sub lease an additional 145,000 acres of contiguous savannah lands located next to the river port with full barge loading facilities to export of wood chips from the port. The cost per tonne of wood chips delivered to the port is projected be at a very competitive price for export to the UK and USA markets.

In Eastern Africa, Clenergen intends to establish energy crop plantations in Mozambique, Tanzania and Madagascar. The plantations will serve as a feedstock supply base for the export of wood chips to operating biomass power plants in Southern Africa and India. Because irrigation will not be required to cultivate the energy crops, overall production costs will be low. Downstream, it is planned to install Rapid Thermal Processing Technology (RTP) to convert the wood chips into Pyrolysis oil and hydrocarbon fuel for export and blending with fossil fuel at refineries located in the Middle East.

In Southern Africa, Clenergen has entered into a Strategic Alliance with Energy Technologies Limited based on Johannesburg, South Africa for the purpose of installing Gasification Biomass Power Plants located in South Africa and in the Copper Mining Belt of Zambia. Energy Technologies have been actively involved in renewable energy projects in Southern Africa for the past 4 years.

In Sri Lanka, Clenergen intends to establish energy crop plantations in Mozambique Sri Lanka and export the wood chips to operating biomass power plants in Southern India. As in Tanzania, the cost of cultivation will be low, since irrigation will not be required to cultivate the energy crops.

On Friday, March 25, 2011, it was announced that the Union Ministry for New and Renewable Energy has set a target of creating 10,000MW of biomass power generation over the next 10 years. Clenergen has spent the last two years working with the government to demonstrate the economic and regional benefits for the direct cultivation of feedstock. The business model was accepted as a tangible way to reduce the country’s power shortages, while providing economic benefits to the rural areas of India.

The tree and bamboo species which Clenergen has invested over 5 years of research and development have now been identified as being suitable as dedicated energy crops for degraded lands. The biomass plants were found to be extremely compelling to the government as they can provide five times the output of electricity when compared to solar power plants.

Commenting on the announcement, Mark Quinn, Clenergen Executive Chairman, stated, “The decision by the Union government to support rural electrification projects supported by designated energy crops is a major decision that has been taken. The establishment of a government policy for biomass and utilization of government owned degraded land will allow Clenergen to compete with wind and solar power, as a viable and profitable alternative source of renewable energy on a large scale. This will have a major impact on our business in India.”

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