Clenergen invests in India
CRGE is looking for the constructions to take place in southern India, as it is geographically more advantageous to build near the equator.
The company will be focusing predominately on the region of Tamil Nadu. The firm recently acquired a 1.5MW biomass facility near Salem, Tamil Nadu.
‘We are planning to generate around 71MW of power, initially, using biomass,’ said Bowen. He went on to explain that, after four years researching feedstock in India, CRGE has identified two trees and a bamboo which have the potential to slash the prices of feedstock by up to 50%. The firm has now signed a 49-year lease agreement with Jeer Mutt Religious Institution that will see these three feedstocks grown and supplied to a plant that, if approved, will be constructed at Tuticorin, Tamil Nadu.
According Bowen the company has already secured a 15-year power purchase agreement with the Power Trading Corporation (PTC), which includes the electricity generated from the biomass power plant. Securing the agreement was funded through financing provided by the Indian Renewable Agency and cost approximately $1.65 million.
In order to support to company’s investment plans Clenergen will list its 100% Indian subsidiary Clenergen Indian Pvt Ltd. on the Bombay Stock Exchange in March next year. The subsidiary is set to raise $31 million that will go towards funding CRGE’s 32MW plant planned for 5,000 acres of land at Tuticorin, Tamil Nadu. Clenergen Indian Pvt Ltd. will also raise $67 million by way of debt.