Monday, April 25, 2011

Clenergen Corp. (CRGE) Subsidiary Enters Strategic Partnership with PowerSource to Accelerate the Installation of Biomass Power Plants

Clenergen Philippines Corp., a wholly owned subsidiary of Clenergen Corp., announced before the opening bell today that it has entered into 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. The projected income exceeds $35 million per annum.

Most island communities are currently supplied electricity from diesel generators at an average cost of 23 cents per KW/h and continue to deal with 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 has secured strong financial support from Credit Suisse (US$25 million already invested), E+Co, a US private equity fund (US$3.35Million in project financing facilities), and the Overseas Private Investment Corp. (a department of the U.S. Treasury).

Through this strategic partnership, Clenergen will utilize its 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. The two companies will proportionally share in the revenues generated from the cultivation of biomass and the sale of electricity to both captive end users and the Philippine Government.

Commenting on the announcement, Miguel Patolot, Non-Executive Chairman of Clenergen Philippines, stated, “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, said, “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.”

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