Clenergen enters into agreement with National Power to supply 10 MW/h off-grid gasification biomass electricity in Philippines, reducing utility's costs by up to US$7M/year through reduced dependence on diesel-generated power

Audrey Dixon

MANILA, Philippines , December 7, 2010 (press release) – Clenergen Corporation (OTCQB:CRGE)(FRANKFURT:9CE) announced today that it had signed a Memorandum of Agreement with National Power Corporation (NPC) for generating off grid gasification biomass electricity and conclude, under a separate agreement, a 10 MW/h Consolidated Power Purchase Agreement. It is forecast that Clenergen would receive over $12 million annually in circa income and reduce NPC's operating costs by as much a $7 million per annum as a result of a reduction in the dependence of diesel generated electricity.

NPC's off-grid power development program aims to accelerate financing, construction and government infrastructure projects in its island economies. The 10 MW/h Agreement will cover the power needs of the Romblon cluster of islands totaling over 5 MW/h, Kalinga with at least 1.5 MW/h and the balance allocated for Palawan off-grid areas and other territories as mutually decided upon between NPC and Clenergen, as directed under the Public-Private Partnership program with the Philippine Government.

Commenting in the Agreement, Mark Quinn, Executive Chairman of Clenergen said "The Philippines continues to emerge as one of our most important emerging markets for renewable electricity. The combination of ideal climatic conditions for the cultivation of dedicated energy crops and improving investor credit ratings has positioned our company for explosive growth in this region".

National Power Corporation President Tampinco commented "Clenergen continues to pioneer in an alternative energy system that we see can help generate sustainable economies in our islands. We welcome this type of initiative to help diversify and balance our sources of power".

About Clenergen Corporation

Clenergen Corporation is a publicly-traded company with its common stock quoted in the USA on the OTCQB Market (Symbol: CRGE) and in Germany on the First Quotation Board, Open Market of the Frankfurt Stock Exchange (Symbol: 9CE) Clenergen offers strategic clean energy generation and supply of biomass feedstock to address the requirement for renewable and sustainable supplies of electricity. Clenergen has developed a unique modular system for gasification and localized plantation management. Clenergen also plans to provide biomass feedstock for producing wood pellets for co firing with coal to produce low emission electricity.

Clenergen Corporation uses biomass feedstock to implement sustainable supplies of clean energy for captive end users, islands, mining companies, government or privately-owned power grid systems and other end users. The "Distributed Environmental Power System" marries significant proprietary advancements in plant science with proven long standing engineering technologies to achieve this goal. For further information on Clenergen Corporation and its products and services, go to: www.clenergen.com.

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