Revonergy, a company engaged in acquisition, development and operation of renewable energy power plants, has been assigned the rights to develop and own a wood waste-to-energy project in Ondo State, Africa.
The project is designed to use wood waste from an assortment of sawmills in the state of Ondo as fuel to generate electricity. The project has been designed to be a 14MW electricity generating facility. However, the company considers that there is sufficient waste and demand for electricity in the vicinity to develop a second phase of equal or greater scale.
The project was developed by a UK company controlled by the president of Revonergy. The UK company began developing the project in 2007.
To date, certain development events and documents have been completed. These include signing a memorandum of understanding with Ondo State governing the development of the project and the state’s 10% equity financial participation; a fuel supply study and full feasibility study; and a project design document for the United Nations approved Clean Development Mechanism cycle.
The events and documents also include selection of an independent UN approved validator for carbon credits; commercial and technical specification of plant and machinery; and the tender document for plant and machinery selection and equipment procurement construction (EPC) contractor.
At full planned development, the total project cost is projected at $30m. A preliminary term sheet for financing of the project from an international bank and competitive bids for the purchase of carbon credits from investment grade organizations have been received.
The company notes that, while a substantial amount of work has been completed, additional project funding may be required to bring the Ondo project to a bankable stage.