Clean Energy Technologies will co-develop a $15 million biomass energy project, along with AshfieldAg Resources, after both companies signed a memorandum of understanding; the MOU includes the use of a revolutionary high temperature ablative fast pyrolysis reactor (HTAP Reactor), which is a top-notch technology that would allow the project to build up its value.
Firstly, the facility will be located in Massachusetts; it will convert forest biomass waste products to renewably generated electricity and BioChar fertilizer.
Secondly, both companies agreed firstly for the deployment of the project’s critical components; which are expected to annually deliver up to 14,600 MWh of renewable electricity and also, 1,500 tons of BioChar. Project will enter commercial operations by the first quarter of 2022.
Thirdly, the MOU is still subject to the execution of definitive agreements; however, it will provide Clean Energy Technologies with the rights for feedstock, site control, approved grid interconnection and Power Purchase Agreement revenues.
In fact, the company foresees to own up to 35% of the Net Present Value, over a 10-year horizon; it also expects internal rates of return of up to 12%. Clean Energy Technologies will also capitalize on each Biomass project with the opportunity to deliver Heat Recovery Solutions.
Also recommended for you: AEP Energy signs energy purchase agreement with Doral LLC. Click here to read.
Clean Energy Technologies to develop four more biomass projects
Moreover, out of all those synergies, the company foresees to increase its energy value by 12% to 14% for the Biomass project. Therefore, the company’s portfolio will also drive top line and bottom-line growth; creating long term predictable income streams with high IRR cash flows.
Furthermore, it will create a footprint and a precedent for future projects to also future the HTAP Reactor. This technology uses ultra-high temperatures and produces renewable electrical power; it also creates the BioChar fertilizer and high heating value fuel gas in addition to other commercially valuable chemicals.
On the other hand, Kam Mahdi, CEO of Clean Energy Technologies, stated. “This project is the first of four anticipated renewable biomass projects; it is expected to serve as a model for developing new projects to capture market share in this highly profitable and growing industry.”
Finally, he remarked. “Our new renewable energy biomass projects are expected to further expand our goal of becoming a complete solution for industrial and municipal scale projects; particularly, in the strategic markets we are targeting.”
