Clenergen Corp. and SVS join forces
In India, Clenergen Corporation, a publicly traded company, has entered into a Memorandum of Agreement (MoA) with SV Sugar Mill (SVS) to take over operations of an existing 27MW/h biomass power plant.
By December 2011 the new project is expected to boot Clenergen’s output capacity to 51.5MW/h, in addition to its revenues, which are expected to reach approximately $40 million (€30.2 million).
While SVS is responsible for funding all capital expenditure relating to the biomass power plant, which is located in Kancheepuram, Tamilnadu, adjacent to another Clenergen-owned 18MW/h plant, Clenergen will operate the plant and supply SVS with a percentage of the power.
Following the completion of some refurbishment works, the plant will commence 24-hour operations at 80% capacity, producing 22MW/h of electricity annually.
Speaking about the MOA Clenergen’s executive chairman Mark Quinn said: ‘The agreement provides us a turnkey operation which will be managed by our team already based in Kancheepuram.’
Clenergen is also looking to work with SVS for the supply of bagasse from its sugar mill during the six-month sugarcane season. Should the contract go ahead, Clenergen would utilise the bagasse as feedstock in its 18MW plant. The distance between Clenergen’s plant and SVS’ sugar mill would see transport costs of the feedstock slashed.
‘The supply of bagasse biomass at a fixed cost to per annum allows the company to maximise its profit margins at the capacity levels being projected,’ Quinn highlighted. The quantity of bagasse biomass in season is sufficient to operate the power plant throughout the year.
By December 2011 the new project is expected to boot Clenergen’s output capacity to 51.5MW/h, in addition to its revenues, which are expected to reach approximately $40 million (€30.2 million).
While SVS is responsible for funding all capital expenditure relating to the biomass power plant, which is located in Kancheepuram, Tamilnadu, adjacent to another Clenergen-owned 18MW/h plant, Clenergen will operate the plant and supply SVS with a percentage of the power.
Following the completion of some refurbishment works, the plant will commence 24-hour operations at 80% capacity, producing 22MW/h of electricity annually.
Speaking about the MOA Clenergen’s executive chairman Mark Quinn said: ‘The agreement provides us a turnkey operation which will be managed by our team already based in Kancheepuram.’
Clenergen is also looking to work with SVS for the supply of bagasse from its sugar mill during the six-month sugarcane season. Should the contract go ahead, Clenergen would utilise the bagasse as feedstock in its 18MW plant. The distance between Clenergen’s plant and SVS’ sugar mill would see transport costs of the feedstock slashed.
‘The supply of bagasse biomass at a fixed cost to per annum allows the company to maximise its profit margins at the capacity levels being projected,’ Quinn highlighted. The quantity of bagasse biomass in season is sufficient to operate the power plant throughout the year.
