The biomass power plant is located next to the Clenergen’s own 18MW/h biomass plant in Kancheepuram.
SVS will be responsible for funding all capital expenditure relating to the plant and, through an operating lease, Clenergen will be responsible for running the plant and supplying SVS with a proportion of the power output.
Once certain refurbishment works are complete, it is expected that the plant will operate at 80% capacity.
In addition to operating the plant, Clenergen intends to contract with SVS for the supply of bagasse from its sugar mill during the six month sugar cane season.
Clenergen will use the bagasse as sustainable feedstock for its 18MW biomass plant and the quantity of bagasse biomass in season is expected to be sufficient to operate the power plant throughout the year.
Further collaboration between SVS and Clenergen is also being explored, whereby Clenergen intends to procure the biogas (methane) from SVS to fuel a 2MW/h gas generator to be located at its existing 18MW/h power plant site.
Also, as SVS’s operations extend to the procurement of wood chips from West Africa, South-East Asia and South America, Clenergen and SVS are exploring the options for collaboration on fuel stock supplies.
