The company said it is in the final stages of closing its initial interest in the project and is currently working on completing the necessary documentation.

Cleantech Transit has also the option to earn up to 40% of the Merced project and plans to continue to work towards increasing its interest in the project as it moves ahead.

The biomass power project is currently owned and operated by Phoenix Energy.

Cleantech Transit, which was founded to capitalize on technology advances and manufacturing opportunities in the clean energy public transportation sector, has expanded its focus to invest directly in specific green projects.