US-based energy company Clean Energy Technologies has signed a Memorandum of Understanding (MoU) with Ashfield Agricultural Commission (Ashfield Ag Resources) for the development of a biomass renewable energy processing facility in Massachusetts.
The MoU enables the two parties to co-develop the $15 million project. Clean Energy Technologies (CETY) will provide its high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor). Ashfield Ag Resources has provided the energy company with the rights to feedstock and site control.
The HTAP Biomass Reactor is a ‘unique’ and proprietary process that transforms organic forest 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.
The parties agreed in principle to the critical components which are expected to annually deliver up to 14,600MWh of renewable electricity and 1,500 tons of BioChar by Q1 2022.
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Clean Energy Technologies plans to use the grid-connected biomass plant to deliver heat recovery solutions. Such a synergy is expected to increase energy value from 12% to 14% for the biomass project.
Clean Energy Technologies also plans to 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.
Kam Mahdi, CEO of CETY, said “This project is the first of four anticipated renewable biomass projects, and is expected to serve as a model for developing new projects to capture market share in this highly profitable and growing industry. By vertically integrating the biomass projects into our business, we are also able to grow our heat recovery business horizontally. We hope that our future projects will be large by orders of magnitude and have a profound impact on the environment while bringing us new sources of income.”