Clean Energy Technologies has signed a Memorandum of Understanding (MOU) with Ashfield Ag Resources to co-develop a biomass renewable energy processing facility. The project will utilise a high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor). The project will convert forest biomass waste products to renewably generated electricity and BioChar fertilizer. It will be located in the state of Massachusetts in the United States.
The project will provide experience for future projects utilizing HTAP Biomass Reactor technology in the biomass renewable energy sector. The HTAP Biomass Reactor 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.
As per the agreement, the project is expected to deliver up to 14,600 MWh of renewable electricity and 1,500 tons of BioChar annually, by Q1 2022.The MoU is subject to the execution of definitive agreements. The project has rights to feedstock, site control, approved grid interconnection and power purchase agreement revenues. The company forecasts up to a 35 per cent net present value (NPV) over ten-year horizon on the $15 million project, with internal rates of return of up to 12 per cent.
The biomass 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. As per the company, this project is the first of four anticipated renewable biomass projects, and is expected to serve as a model for developing new projects.