Companies partner on India biomass projects

By Anna Austin
Web exclusive posted Jan. 26, 2009, at 3:55 p.m. CST

Green energy developer W2 Energy Inc. and renewable energy product developer Alpha Renewable Energy announced Jan. 22 they are collaborating on the development and sale of biomass-to-energy plants in India.

Under the 10-year agreement, which went into effect Dec. 30, 2008, W2 Energy has licensed to Alpha Renewable Energy its expertise and technology to create synthetic diesel and electricity generated from biomass. W2 Energy's modular systems are capable of producing both liquid fuels and electricity from biomass, municipal solid waste, sewage and farm waste.

In exchange, Alpha Renewable Energy will pay W2 Energy $500,000. The first payment of $100,000 was made upon a license agreement signing; another $100,000 will be paid upon delivery of the manufacturing drawings and plants; the third installment of $100,000 will be paid upon the start of production; the company will receive another $100,000 within 12 months from the start of production; and the fifth installment of $100,000 will be made within 24 months of production start-up.

Additionally, Alpha Renewable Energy will pay W2 Energy a six-percent royalty of the gross annual sales from any equipment which incorporates the licensed technology.

The contract, which is exclusive to projects within India, calls for an automatic 10-year renewal if conditions of the agreement are met.

Mike McLaren, chief executive officer of W2 Energy, said the small- and medium-size biomass power plants are a great fit for India, where there are so many towns that need waste remediation, electricity and liquid fuel.

In July 2008, W2 Energy announced that its project with Combustibles Alternativos Chile, also known as Cobal Chile, was delayed indefinitely. The project, which was announced in late July, entails the construction of a waste-to-energy plant that will convert 80 tons of municipal solid waste into electricity and synthetic diesel using W2 Energy's plasma and gas-to-liquid technologies. (Read "W2 Energy to construct biomass facility for Cobal Chile.")