Clenergen will be constructing and operating a combustion steam biomass power plant in Tirunelveli, Tamilnadu. Tirunelveli is located approximately 5 miles from Tuticorin, one of the twelve major sea ports of India. A 10 acre site has been sub let for a 25 year period on an old spinning mill site and work will commence in November 2010 on the foundation infrastructure for the biomass power plant. Power evacuation will be via substation located within 18km from the power plant site.
Clenergen intends to set up commercial energy crop plantations in 2011, which will generate sufficient biomass feedstock supplies for the power plant to operate at maximum capacity. Surplus Biomass will be transported to other biomass power plants owned and operated by Clenergen in the State of Tamilnadu.
The power plant is scheduled to be commissioned in 2012. A detailed site plan for the construction of the plant will be submitted shortly to the appropriate governmental agencies. The State Government of Tamilnadu has agreed to a waiver of all import duties and the national government of India has approved a ten year income tax exemption status for all renewable energy projects.
Clenergen has acquired a 1.5MW/h anaerobic digestion biomass power plant site located in Salem, Tamilnadu, which will be upgraded to 10MW/h by 2011. The plant is currently operational and will reach a full generating capacity July 2010. The company intends to sell the electricity through short term power purchase agreements with direct end users at an average price of between US $0.14-18 KW/h, which will be incorporated under an umbrella 15 year guaranteed Power Purchase Agreement entered into with Power Trading Corporation of India Limited (PTC).
The site includes ten acres of land with a power evacuation substation onsite. The substation allows access to the national power grid system with minimal transmission loss. The power plant is a turnkey, fully operational facility which generates electricity through an anaerobic digestion process of chicken litter in order to produce Methane gas. The Methane gas is then used as a source of power generation using GE Jenbacher gas engines. The by-product of the anaerobic digestion process is chicken litter compost (38.6 tons per day), which can be processed to produce fertilizer for sale to third parties and/or used to supply Clenergen energy crop plantations, resulting in a cost savings of approximately $3 million per annum.
Under the expansion plans, the anaerobic digestion biomass power plant will be increased to 8MW/h, along with the installation of a 2MW/h Ankur Gasification Biomass Power Plant, which will utilize wood biomass as it’s feedstock.
Clenergen has entered into an agreement with Yuken India Limited (YIL) located in Bangalore, Karnataka, to install a 4MW/h gasification biomass power plant in the last quarter 2011. Up to 2.5MW/h will be consumed by YIL manufacturing operations directly, with the balance of electricity being generated being sold to the State of Karnataka. YIL’s requirement to secure a direct supply of electricity was a direct result of the vertical integration of its supply chain in order to guarantee a supply of critical parts. This decision was due to the shortages of parts caused by the regular power blackouts experienced in Tamilnadu where the suppliers were located.
YIL was set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company, Japan (YKC) for the manufacture of Oil Hydraulic Equipment (certified as a ISO-9001:2000). YIL is a Listed Company with 40% of the shares held by YKC and the rest by Financial Institutions, the Indian Promoters, and the Public. In the last 29 years, YIL has achieved the fastest growth rate in the Oil Hydraulics Industry in the Country in spite of being the last entrant.
Clenergen has entered into an Agreement with SV Sugar Mills Limited (SVS) to operate a 27.3MW/h co generation power plant located adjacent to the companies 18 MW/h biomass power plant in Kancheepuram, Tamilnadu. Under a 10 year operating agreement, Clenergen will be responsible for running the plant and supplying SVS with a portion of the output. Operating at an 80% Plant Load Factor (PLF) the power plant will generate a net 22MW/h of electricity per annum, operating on a 24 hour basis.
SVS have agreed to supply bagasse from its sugar mill during the 6 month sugar cane season. The quantity of bagasse produced during the season is sufficient to operate the plant throughout the year. All water requirements for the operation will be provided for by SVS’s waste water treatment plant located on the site. Future plans include the procurement of biogas (methane) produced from the SVS’s sugar mill operation and used to generate an additional 2MW/h of renewable electricity using gas engines.
The 18 MW/h combustion steam power plant is fully operational and located approximately 25 miles east of Chennai, India. The plant was upgraded from 12MW/h to 18MW/h in 2008 with the installation of a new HTC combustion turbine and generator.
The power plant is a turnkey, fully operational facility that has existing supply contracts for biomass as well as clients for the purchase of electricity under short term power purchase agreements. For the running of the current capacity, the plant is strategically located to gain all the required raw materials from within a distance of 100-150 KM radius. The power plant is well connected with all major surrounding districts, with the TNEB sub-station located at a distance of 2 KM. Further, the region has good water source from Palar River Basin which is located at about 1.5 KM.
Clenergen India has identified 3,600 acres of land to sub lease within close proximity to the site in order to cultivate its own source of biomass feedstock, which will significantly reduce the operating costs and increase profitability by as much as 30%. The power plant is currently selling peak power at US 17 cents per KW/h and regular power at US 13 cents per KW/h average to companies in the region with projected profits of $3 million per annum (before applicable taxes).