COSTA MESA, Calif. – Clean Energy Technologies, Inc., a low carbon energy company focusing on products and solutions in the energy efficiency and environmental sustainability market, announced that it has finalized and executed definitive documents to establish a special purpose vehicle to fund to co-develop with Ashfield Ag Resources a $15,000,000 renewable energy processing facility in Massachusetts using the revolutionary high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor). The Ashfield facility will convert approximately 10,000 tons per year of clean woody feedstock into an estimated 16,500 MWh electricity/year. Additionally, it will produce 1,400 metric tons of BioChar and 26,000 MM BTU of heat per year by using a high temperature ablative fast pyrolysis reactor.
This renewable energy project will be operated from within the newly formed company and will be funded through the special purpose vehicle Ashfield Renewable Ag Development, LLC. with equity and debt secured by the project’s revenues. Within the agreement, the parties have agreed that CETY will hold all rights to Power Purchase Agreement Revenues, feedstock, site control, and approved grid. CETY management forecasts up to a 35% net present value over investment return to the company over 10yr horizon on the $15,000,000 project with internal rates of return of up to 12%. With a longer time horizon, the NPV/IRR could be greater based on additional revenues over the ten year period that CETY will lock in for future.
CETY’s ORC wholly owned subsidiary, Heat Recovery Solutions, plans to capitalize on each HTAP project with the opportunity to deliver Heat Recovery Solutions. Such synergies increase energy value by 12% to 14% for the HTAP project. CETY’s portfolio of HTAP projects are expected to drive top line and bottom-line growth elsewhere in the company creating long term predictable income streams with high IRR cash flows.
As previously announced by CETY, this project is the first of four anticipated renewable biomass projects, and is expected to serve as a model for developing new projects to capture market share in this rapidly growing industry. This project also outlines a roadmap for how CETY intends to further capture and finance future projects utilizing HTAP Biomass Reactor technology in the rapidly growing biomass renewable energy sector. CETY management believes it can secure additional biomass resources to deliver additional projects ten times larger in the future.
