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May 5, 2010 Clenergen secures land lease in India to cultivate dedicated biomass crops
NEW YORK, May 5, 2010 (Market Wire) - Clenergen Corporation signed a 49-year lease agreement with the Jeer Mutt Religious Institution for 5,000 acres of land suitable for cultivation of its two species of tree and grass for the supply of fuel (wood chips) for a new construction of a 32 MW/h Combustion Steam Biomass Power plant, to be located in land leased near Tuticorin, Tamilnadu. The total land under lease and deposit in Tamilnadu with the Jeer Mutt Religious Institution's is 9,000 acres, which is projected to generate 360,000 tonnes of wood chips. This quantity is sufficient to supply up to 45 MW/h biomass power plants. The land requires minimal infrastructure in order to plant Clenergen's energy crops. Trials will commence in July 2010 and full scale planting, April 2011. Related stories: * Siemens awarded contract for biomass-powered turbine at paper mill in UK - April 29, 2010 * Idle QC pulp mill to become pellet plant - April 26, 2010 * Electrabel more than quadruples wood biomass use at Netherlands power plant - April 23, 2010 More Articles The company intends to float Clenergen India Private Limited on the SENSEX in March 2011 in order to raise US$67 million in debt Financing and US$31 million in equity financing. An information memorandum has been drafted by Ernst and Young, Bangalore, Karnataka and ICICI Securities, India as the Investment Bank. The 32 MW construction is projected to generate US$15 million in gross profits per annum. Clenergen has already secured a 15-year power purchase agreement (PPA) with the Power Trading Corporation of India Limited (PTC), which will encompass the electricity generated from the biomass power plant. Commenting on the lease, Mark Quinn, Chief Executive Officer, said, "The leasing of this land in Tamilnadu allows the company to proceed with its public floatation and construction of a new 32 MW/h biomass power plant near Tuticorin, Tamilnadu. The logistics provide a turnkey supply chain operation with power evacuation facilities within 15 km from the site leased for the power plant. This is a further milestone towards our target of generating 500MW/h by 2014.


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