On 29 April, Clean Energy Technologies (CETY) announced it had entered into a memorandum of understanding (MOU) with Ashfield Ag Resources to co-develop its initial biomass processing facility using the high temperature ablative fast pyrolysis reactor.
Located in Massachusetts, US, this project will convert forest biomass waste products into renewable electricity and biochar fertiliser. The project is expected to deliver up to 14,600 MWh of renewable electricity annually and 1,500 tons of biochar by the first quarter of 2022.
The MOU, which is subject to the execution of definitive agreements, provides the CETY project with rights to feedstock, site control, approved grid interconnection, and power purchase agreement revenues. CETY forecasts up to a 35% net present value (NPV) on the $15 million (€12.3 million) project and internal rates of up to 12%. With a longer time horizon (10+ years), the NPV/internal rate of return are even bigger, showing the substantial value CETY will lock in for future years.
Kam Mahdi, CEO of CETY, said: “This project is the first of four anticipated renewable biomass projects, and is expected to serve as a model for developing new projects to capture market share in this highly profitable and growing industry.
“By vertically integrating the biomass projects into our business, we are also able to grow our heat recovery business horizontally. We hope that our future projects will be large by orders of magnitude and have a profound impact on the environment while bringing us new sources of income.
“Our new renewable energy biomass projects are expected to further expand our goal of becoming a complete solution for industrial and municipal-scale projects in the strategic markets we are targeting.
“By offering additional renewable energy solutions with near-zero emissions, zero solid waste residue, and better waste sourcing capabilities, we firmly believe that renewable energy biomass projects will establish our reputation as a viable and attractive renewable biomass energy solution while generating a new stream of revenues and profits for our company.”