Clenergen, PowerSource Philippines partner to supply, distribute up to 30 MW from small biomass power plants to Phillipine island communities, major mining companies over next three years
April 25, 2011
– Clenergen Philippines Corporation, a wholly owned subsidiary of Clenergen Corporation (OTCQB:CRGE)(FRANKFURT:9CE) announced today that it had signed a strategic partnership with PowerSource Philippines, Inc to accelerate the installation of up to 30MW of rural "off grid "renewable electricity to Philippine island communities and major mining companies over the next three years, with projected income in excess of $35 million per annum.
Currently, the majorities of island communities are supplied electricity from diesel generators at an average cost of 23 cents per KW/h and continues to face 12 hour black outs due to inconsistent supplies of diesel. Powersource has been granted a 10-15 year exclusive franchise to generate and distribute power in specified rural areas, and is the first Qualified Third Party ("QTP") certified under the Philippine Power Industry Reform Act. PowerSource enjoys strong financial support from Credit Suisse (US$25 million already invested), E+Co a US private equity fund (US3.35Million in project financing facilities) and the Overseas Private Investment Corporation (an arm of the U.S Treasury).
The strategic partnership will combine Clenergen proprietary plant science for the cultivation of energy crops to supply small biomass power plants that will be financed by PowerSource and then distributed through PowerSource's transmission network. Both parties will proportionally share in the revenues generated from the cultivation of biomass and each party's sale of electricity to both captive end users and the Philippine Government.
Commenting on the announcement, Miguel Patolot, Non Executive Chairman of Clenergen Philippines said "the partnership will bring into synergy the extensive experience of off-grid power generation of PowerSource and the cutting edge plant science technology of Clenergen. This partnership will provide infrastructure and equipment financing to support the commercial rollout of energy crop plantations throughout the island communities".
Frederick Lacroix, Chairman and Chief Executive officer of PowerSource "We welcome this partnership and recognize the strength of Clenergen in plant science and energy crop plantations. This technology will insure our client's sustainable and competitively priced electricity and allow accelerated growth throughout the regions where we have been granted exclusive franchises".
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.