Clenergen India Pvt Ltd, the wholly owned subsidiary of Clenergen Corporation of USA, has acquired a 1.5MW biomass power plant in Tamil Nadu for a consideration of $1.65 million (about Rs 7.7 crore). The funding was made through a mix of debt and equity raised through share sale.
For the debt part, Clenergen has raised funding from Indian Renewable Energy Agency and other sources, while the equity was raised selling shares to the private equity players, it said in the statement.
Clenergen mentioned that the target plant is a turnkey project and is fully operational. It has facility to generate electricity through an anaerobic digestion process using chicken litter as the biomass feedstock. Clenergen is planning to start power generation from the project from June 15 this year, and is expecting revenue of $1.2-$1.8 million per annum from the plant, added the statement.
Clenergen also intends to upgrade the generating capacity of the facility to 10MW over the next 12 months. It believes, if fully operational, the expanded plant will generate revenues in excess of $6 million per annum.
Besides acquisition, the company is also expanding its operation in organic way. It will install two new biomass power projects, a 16MW plant in Tamil Nadu and a 64MW plant in Karnataka. It has also entered into a power purchase agreement with Power Trading Corporation of India Ltd (PTC) to sell produced power, and will supply 71MW of electricity to PTC for a 15-year period at an average price of 12 cents per KW hour.
Mark Quinn, CEO, Clenergen Corporation, said, in the statement, “This is the first of several such acquisitions that Clenergen has scheduled for closure this year. Clenergen is committed to generating revenues and increasing shareholder values through acquisitions of existing power plants in tandem with its plan for an estimated 32,000 acres of energy crop plantations spread over six continents.”