Clenergen Corp. announced today that it has secured long term leases effective 25 years on plantation land parcels in the Tirunelveli District of Tamilnadu for cultivation of its feedstock. The company has already begun working on the first parcel of 850 acres for a detailed survey prior to designing the irrigation system and commercial planting. The lease has been provided by Emberumanar Jeer Trust, an entity regulated by the Government of Tamilnadu.

The company has also been granted a lease of 1,200 acres from a similar Government of Tamilnadu, which is anticipated to be closed by October 30th 2009 after completion of the formalities relating to contour mapping. Clenergen plans to cultivate Beema Bamboo over these land parcels once a detailed assessment of the soil conditions and water availability is complete. Beema Bamboo planting is scheduled to commence in November 2009 since the plant is not affected by the monsoon rains.

Estimated to yield 80,000 Metric Tonnes per annum, Clenergen is confident it will meet the requirements of the first 8MW unit of the 16 MW power stations being establishing in Tuticorin, Tamilnadu. Clenergen has leased a 10 acre site for the power plant which includes structural buildings suitable for storage. According to the press release, the power plant is located within 2KM of a major highway and 10 Km of the nearest substation for power evacuation.

Until the harvests begin, Clenergen has signed midterm supply contracts for biomass wood chips sourced from Prosperous Juliaflora bushes to meet its feedstock requirements in Tamilnadu.

Commenting on the land leases, Mark Quinn, CEO stated, “Execution of our feedstock program is a critical component in meeting the supply requirements of our Biomass power plants. By securing lease agreements at this stage allows the company to immediately start planting Beema Bamboo which will yield its first harvest in 2011.”

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