Clenergen Corp., biomass power developer, recently announced that it has entered into a 15-year power purchase agreement with PTC India Ltd. The agreement is through Clenergen’s wholly owned subsidiary, Clenergen India. PTC India, a public-private partnership company, is the leading provider of power trading solutions in India, and is focused on developing a commercially vibrant power market in the country.

Clenergen currently has plantations in the Tuticorin and Tirunelveli districts in southern India, totaling 4,000 acres, of which 1,200 acres are earmarked for cultivation of bamboo and 2,800 acres for paulownia, two carefully researched and chosen biomass crops. The company plans to lease a total of 16,000 acres for biomass plantations in India, supplying various power plants operating on gasification technology.

Clenergen CEO, Mark Quinn, indicated that the first of the power plants has already started operation in Tuticorin. The 1.5 megawatt

Today it was announced that Clenergen Corporation India Private Limited, a wholly owned subsidiary of Clenergen Corporation, has agreed on the terms to acquire a 1.5MW/Hr biomass power plant in Namakkal, Tamilnadu, which will be operational by yearend 2009.

Recognized as one of India’s National Demonstration Projects, the plant was shut down in 2007 due to operational cash flow constraints and its inability to remain profitable at a low tariff rate. However, under a Power Purchase Agreement between Power Trading Corporation of India Limited (PTC) and Clenergen India Private Limited, a higher tariff rate has now been agreed.

The unit is expected to generate net revenue of approximately US$1 million in its first year of operation. During the first phase of its operations in India, Clenergen will ramp up the capacity of this power plant to 10MW/Hr while installing two new biomass