Clenergen Corporation
OTC Bulletin Board : CRGE

Clenergen Corporation

July 07, 2010 08:00 ET

Clenergen Corporation (CRGE.OB) Signs Agreement to Design and Install Up to 34MW/h of Biomass Power Plants at Mining Sites in the Philippines

NEW YORK, NEW YORK--(Marketwire - July 7, 2010) - Clenergen Corporation (OTCBB:CRGE) today announced that it has entered into a Memorandum of Agreement with Rio Tuba Nickel Mining Corporation to design and install up to 34MW/h of biomass power plants at certain of Rio Tuba's mining operations in the Philippines. Rio Tuba's primary area of operations is in the Palawan province. Rio Tuba commenced mining operations in 1975 and as of end 2005, a total of 13.98 million Metric tons nickel saprolite ore has been shipped to Japan. It is proposed the project will commence with the installation of a demonstration 2 Megawatt per hour biomass gasification power plant on the island of Palawan and the cultivation of 400 acres of marginal land for the Clenergen's proprietary bamboo plant as the energy crop to provide fuel (wood chips) for the power plant.

Currently Rio Tuba is committed to engage in renewable energy projects which have both a positive impact on the environment, remediate lands that have been mined and creating jobs for both rural and urban communities in the regions where the company operates. A reliable energy source is essential for every mining company where 24/7 supplies of electricity is required in order to operate the mines at peak efficiencies. The scalability of Biomass power plant will allow the company to their generating capacity for new investments, such as the Slake Lime Plant in Palawan. Under the proposal submitted, Rio Tuba will enter into a long term power purchase agreement (PPA) for the supply of renewable electricity at a fixed rate per KW/h, subject to annual inflation adjustments.

A majority of the Philippine islands rely upon leased diesel generators for the generation of electricity where the average cost per KW/h is in excess of US $0.26. Due to fluctuations in diesel prices, Clenergen believes commercial enterprises using diesel-generated power have limited control over their energy costs or related reliability of supply, which can significantly impact the profitability and sustainability. Blackouts of between four and twelve hours are quite commonly experienced in these communities, since demand continues to rise without any subsequent increase in supply.

Due to the fertile soil and abundance of rain, the Philippines offers an ideal location to cultivate Beema Bamboo both gasification and combustion steam biomass power plants. Bamboo is a natural species on most Philippines islands where there exists vast supplies of existing biomass feedstock from native bamboo as well as agricultural waste (coconut shells, rice husks, sugar cane tops and trash). It is estimated that once the energy crop plantations reach productivity after three years, the company will reduce its electricity production costs by as much as 30% per annum. Trials will be conducted to plant Beema Bamboo for the purpose of remediation of land surrounding the mining sites. Carbon credits will be earned from the displacement value of diesel generated electricity which will be accredited to the Rio Tuba Nickel Foundation where the community and environment form an integral part of its Corporate Social Responsibility (CSR) program.

Commenting on the project, Mark Quinn, Executive Chairman of Clenergen said "supplying biomass-generated power to mining operations. Mining operations such as Rio Tuba is an integral part of the company's strategy two of the most challenging targets for mining companies, especially in the emerging markets, where the gap between the supply and demand for electricity continues to widen. In addition our strategy of local cultivation of the feedstock could aid in the remediation of mining sites and reforestation of marginal lands and providing a long term solution for meeting the environmental standards set by the Government of the Philippines".

Mr. Manny Zamora, President and Chief Executive Officer of Rio Tuba Nickel Mining Corporation said "The opportunity of having a sustainable source of energy excites us in Rio Tuba due to immense environmental contributions the project can provide not only for our mining operations but also for the community as well"

About Clenergen Corporation

Clenergen Corporation is a publicly-traded company with its common stock quoted on the Over-the-Counter-Bulletin Board (OTCBB:CRGE). 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 intends to use proprietary and mixed biomass feedstock to implement sustainable supplies of clean energy for regional, captive end users, remote islands, and mining companies and, through government- or privately-owned power grid systems, other end users, including private homes. 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.

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.

Contact Information

  • Clenergen Corporation
    Jessica Hatfield
    0044 (0)207 739 0028
    0044 (0)207 657 3275 (FAX)
    www.clenergen.com