Dec 6 2010
Clenergen has signed a Memorandum of Agreement with SV Sugar Mills (SVS) to operate an existing biomass energy plant. The plant, which has a capacity of generating 27 MW of electricity per hour (MWh), will increase the operating capacity of Clenergen to 51.5 MWh, by 2011. Run rate revenue from the project is estimated to be about $40 million every year.
Clenergen's 18 MWh plant in India
The biomass energy plant is situated adjacent to the 18 MWh plant of Clenergen in Tamil Nadu, India. SV Sugar Mills will invest the capital expenditure for the plant, while Clenergen will be operating the plant, and supply power to the former. After refurbishment of the plant is completed, it is expected to generate 22 MWh of electricity per year.
In addition to this agreement, Clenergen is also planning to sign a contract with SVS to get bagasse supply, at the time of the sugarcane season. The company will use the bagasse as fuel for its 18 MWh plant. Moreover, the company is planning to purchase biogas from SVS to power a planned 2 MWh gas generator at the 18 MWh biomass plant.