Clean Energy Technologies Affiliate Announces Favorable Order from Maine Public Utilities Commission
- VRG - Lyndon received New Renewable Resource Certification status, allowing it to participate in the trading of Renewable Energy Certificates within Maine's market.
- The facility is projected to generate $5.2 million in revenue over the first 10 years of participation in the program.
- The plant is expected to deliver in excess of 18,000 MWh of renewable electricity and 1,500 tons of BioChar annually and be fully commissioned within 12 months.
- The $10 million facility construction may face delays or cost overruns, impacting the projected revenue and timeline for delivery.
- The company's reliance on the Inflation Reduction Act and future power purchase agreements may introduce regulatory and financial risks.
Insights
The recent order from the State of Maine Public Utilities Commission granting New Renewable Resource Certification to Vermont Renewable Gas, LLC's biogas generator facility is a significant development for Clean Energy Technologies, Inc. (CETY). This certification not only enables the facility to trade Renewable Energy Certificates but also positions CETY favorably within the renewable energy market, which is bolstered by Maine's commitment to 100% renewable energy by 2050. The projected revenue of $5.2 million over the first decade underscores the financial viability of this project.
Furthermore, the alignment with the Inflation Reduction Act indicates potential access to federal incentives, enhancing the economic attractiveness of the investment. The mention of a $53 million, 20-year power purchase agreement provides evidence of long-term revenue stability and the strategic importance of this project for CETY's growth. The integration of HTAP Biomass Reactor technology into their portfolio represents a competitive advantage in the biomass sector, potentially leading to increased market share and diversification of income sources.
The certification of VRG – Lyndon as a Class I and Class IA Renewable Resource is a crucial step for CETY in terms of regulatory compliance and environmental stewardship. It reflects a growing trend of states like Maine adopting stringent Renewable Portfolio Standards to encourage clean energy production. The environmental impact of this biogas facility extends beyond electricity generation, as it also produces BioChar, a byproduct that can improve soil health and sequester carbon, contributing to broader sustainability goals.
The strategic focus on HTAP technology for converting waste into clean energy aligns with global efforts to reduce greenhouse gas emissions and manage waste more effectively. This project exemplifies how private sector innovation can support public policy objectives, such as Maine's renewable energy targets and offers a model for similar projects in other regions seeking to reduce their carbon footprint.
From a financial perspective, the development of the VRG – Lyndon facility appears to be a calculated move by CETY. The $10 million investment in the facility is expected to bring in $5.2 million in revenue over ten years, which suggests a significant return on investment, especially when considering the potential for additional revenue streams from the sale of BioChar and other byproducts. The 20-year power purchase agreement provides a stable, predictable cash flow, which is attractive to investors seeking long-term investments with high internal rates of return (IRR).
Additionally, synergies with CETY's existing Organic Rankine Cycle (ORC) business, which could increase energy value by 15% for the biomass project, indicate a strategic leveraging of the company's current technology and expertise. As investors often look for companies with a diversified and integrated approach to growth, CETY's expansion into the biomass sector could be seen as a positive development that may attract further investment and drive up the company's stock market value.
IRVINE, CA., Feb. 07, 2024 (GLOBE NEWSWIRE) -- Clean Energy Technologies, Inc. (NASDAQ: CETY), a clean energy manufacturing and services company, offering eco-friendly green energy solutions, clean energy fuels, and alternative electric power for small and mid-sized projects in North America, Europe, and Asia announced today that Vermont Renewable Gas, LLC (VRG), an affiliate limited liability company, has received a favorable order from the State of Maine Public Utilities Commission (PUC). The order grants New Renewable Resource Certification status for VRG – Lyndon, a 2.2 MW biogas generator facility under development in Lyndonville, Vermont.
In recent months, VRG initiated a request with the Maine PUC for certification as a qualified generator under Maine’s Renewable Portfolio Standard (RPS). In January 2024, the PUC announced its decision that VRG – Lyndon, as a biomass project, qualifies as both a Class I and Class IA Renewable Resource within Maine. The PUC’s decision allows VRG to participate in the trading of Renewable Energy Certificates within the state’s market. By aligning with Maine's RPS, VRG - Lyndon actively contributes to the state's goal of sourcing
Centered around CETY’s revolutionary high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor), CETY will design, build, and operate the
CETY is focused on HTAP for transforming industrial, municipal, landfill, agricultural, and forestry waste into clean energy, aligning with the growing investment in clean energy solutions for commercial, industrial, and municipal sectors. The project will also benefit from the Inflation Reduction Act passed in August of 2022.
Kam Mahdi, CEO of CETY, stated “This decision issued by the Maine PUC is one of several positive announcements CETY has made concerning VRG - Lyndon. With a
In combination with CETY’s current clean energy technologies and solutions, these projects will advance the company’s mission to offer a more vertically integrated and scalable platform for renewable power solutions across multiple industries in most key markets globally.
Furthermore, CETY’s existing ORC business will capitalize on each biomass project, with the opportunity to deliver Heat Recovery Solutions. Such synergies increase energy value by
More importantly, this milestone provides a footprint for future projects utilizing CETY’s proprietary HTAP Biomass Reactor technology. In the rapidly growing biomass renewable energy sector, its solution produces renewable electric power, BioChar fertilizer and high heating value fuel gas in addition to other commercially valuable chemicals.
About Clean Energy Technologies, Inc. (CETY)
Headquartered in Irvine, California, Clean Energy Technologies (CETY) a low carbon energy company delivers power from heat and biomass with zero emission and low cost. CETY designs, produces, and markets clean energy products & solutions focused on energy efficiency and renewable energy. The Company’s principal product is the Clean Cycle™ magnetic bearing heat recovery generator, offered by CETY’s subsidiary Clean Energy HRS, or Heat Recovery Solutions.
The Clean Cycle™ system captures waste heat from a variety of sources and turns it into electricity that can be used or sold back to the grid. CETY’s proven, reliable technology allows municipal, commercial, and industrial users with heat sources, such as from biomass, industrial processes, or energy production, to boost their overall energy efficiency with no additional fuel, no pollutants, and little ongoing maintenance. CETY’s common stock is currently traded on the NASDAQ Market under the symbol CETY.
For more information, visit www.cetyinc.com or www.heatrecoverysolutions.com.
Clean Energy Technologies, Inc.
Investor and Investment Media inquiries:
949-273-4990
ir@cetyinc.com
FAQ
What is the ticker symbol for Clean Energy Technologies, Inc.?
What is the projected revenue for VRG - Lyndon over the first 10 years of participation in the program?
What is the expected annual delivery of renewable electricity and BioChar from the plant?
