ALLGREEN Energy India (ALLGREEN Energy) plans to launch 10 biomass based renewable energy projects in India in the next two to three years. Totally INR5 billion will be invested in these projects. The work on three plants, to be located in Karnataka, Tamil Nadu and Madhya Pradesh, will commence in March 2009. Each plant will have generation capacity of 6.5 megawatt (MW) and the total output from all the plants will be about 65 MW.
Production is expected to start twelve months after the achievement of the financial closure. ALLGREEN has made arrangements for the prospective buyers of the power produced.
ALLGREEN’s Chairman and Chief Executive Officer Kamlesh Tejwani, declined to specify the locations where it would be setting up biomass power plants in Karnataka, Madhya Pradesh and Tamil Nadu in the first phase, saying “we are not disclosing it for strategical reasons. Because some players might be looking at the same spot which we have identified”.
The funding for the plants will be 70% from debt and 30% from equity, Tejwani revealed.
The company is adopting biomass gasification process from Indian Institute of Science (IISc).
India has potential in renewable energy sector with potential exceeding 16,000 MW Tejwani, said.