Clean Energy Technologies (OTCMKTS:CETY) Finalizes Agreement On $15m Renewable Energy Facility In Ashfield Mass
Headquartered in Costa Mesa, California, Clean Energy Technologies (OTCMKTS:CETY), has collaborated with Ashfield Ag Resources to co-develop a $15,000,000 renewable energy processing facility in Massachusetts using the revolutionary high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor).
Elaborating on the details of the collaboration CETY issued in its release that the company has finalized and executed definitive documents to establish a special purpose vehicle to fund. On Ashfield’s front, it would help convert approximately 10,000 tons per year of clean woody feedstock into an estimated 16,500 MWh electricity/year. Supplementing to this, it would also harvest 1,400 metric tons of BioChar and 26,000 MM BTU of heat per year by using a high temperature ablative fast pyrolysis reactor.
Discussing further on the alliance, the parties have come to the consensuses that CETY will hold all rights to Power Purchase Agreement Revenues, feedstock, site control, and approved grid. The details of the same are mentioned within the agreement. With this agreement, the company is hopeful of a rise 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%. The functioning of this renewable energy project would be by the newly formed company and would be sponsored through the special purpose vehicle Ashfield Renewable Ag Development, LLC. with equity and debt secured by the project’s revenues.
Backed by the plans of capitalization on the HTAP projects of the company by CETY’s wholly owned subsidiary, Heat Recovery Solutions, these company is anticipated to generate long term predictable income streams with high IRR cash flows.Being the first project among the four anticipated renewable biomass projects, the project is expected to chalk out for how CETY intends to further capture and finance future projects utilizing HTAP Biomass Reactor technology in the rapidly growing biomass renewable energy sector.
