Clenergen Corporation

Clenergen Corporation

April 05, 2011 05:17 ET

Clenergen Closes $8 Million in Working Capital and Project Specific Financing

CHENNAI, INDIA--(Marketwire - April 5, 2011) - Clenergen Corporation (OTCQB:CRGE)(FRANKFURT:9CE) announced today that it has signed an agreement to secure $8 million in working capital and project specific financing.

Project financing for gasification projects with National Power Corporation on Romblon Island in the Philippines and Yuken India Limited will increase Clenergen's generating capacity to 51.8MW by December 2011, generating a projected $44.0 million per annum revenue with an EBITDA of $9.7 million on an annualized run rate basis.

$2.5 million will be applied towards bulk purchasing of feedstock for the existing 18MW and 27.3MW power plants. which will result in a reduction in operating costs and increased profitability.

Funds will be allocated to upgrade the 1.5MW Anaerobic Digestion power plant to 2.5MW through the addition of a 1MW gas engine. This in turn will generate approximately 40 tons per day of compost as a result of using chicken litter as a feedstock. The compost will be used as a fertilizer on Clenergen plantations, with the excess being sold into the marketplace.

Commenting on the announcement, Mark Quinn Executive Chairman of Clenergen said "execution of our gasification projects in India and Philippines is a major milestone for the company. We will be able to demonstrate our captive power model for both mining and manufacturing companies, as well as providing turnkey rural electrification projects using biomass from designated energy crop plantations. Working capital for our existing power plants will increase our bottom line profits through bulk purchasing and importation of biomass from South East Asia".

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:

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). To the extent that any statements made in this press release contain information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified by the use of words such as "expect," "plan," "will," "may," "anticipate," "believe," "should," "intend," "estimate," and variations of such words. Forward-looking statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, those risks and uncertainties contained in this press release and those identified in the periodic reports that the company files with the Securities and Exchange Commission (the "SEC") pursuant to the Exchange Act.

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