United States – Clean Energy Technologies and Ashfield Ag Resources will co-develop its initial biomass renewable energy processing facility using the high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor).
Located in Massachusetts, this project will convert forest biomass waste products to renewably-generated electricity and BioChar fertilizer. The parties agreed in principle to the critical components which are expected to annually deliver up to 14,600 MWh of renewable electricity and 1,500 tons of BioChar by Q1 2022.
The signed Memorandum of Understanding (MoU), which is subject to the execution of definitive agreements, provides the CETY project with rights to feedstock, site control, approved grid interconnection and Power Purchase Agreement revenues. CETY management forecasts up to a 35% NPV (over 10yr horizon) on the $15,000,000 project and internal rates of return of up to 12%. With a longer time horizon, the NPV/IRR are even bigger showing the substantial value CETY will lock in for future years.
CETY’s existing ORC business will also capitalize on each Biomass project with the opportunity to deliver Heat Recovery Solutions. Such synergies increase energy value by 12% to 14% for the Biomass project. CETY’s portfolio of Biomass projects will thus also drive top line and bottom line growth elsewhere in the company creating long term predictable income streams with high IRR cash flows.
Biomass renewable energy
More importantly, it provides a footprint for future projects utilizing HTAP Biomass Reactor technology in the rapidly growing biomass renewable energy sector. The HTAP Biomass Reactor is a unique and proprietary process that transforms organic waste by using ultra-high temperatures and produces renewable electrical power, BioChar fertilizer and high heating value fuel gas in addition to other commercially valuable chemicals.
CETY management believes it can secure additional biomass resources to deliver additional projects ten times larger in the future. The biomass renewable energy project will be operated from within a newly formed company and is expected to be funded through a special purpose vehicle with equity and debt secured by the project’s revenues.