The technical agreement envisages testing of Marjestica, Beema Bamboo and Vanshree, fast growing plant species identified by Clenergen, as sources of feedstock for converting wood chips to pyrolysis oil.

Clenergen said that the high yield per acre of biomass will reduce the cost of production and is expected to produce a fuel oil substitute at costs that are at least 25% less than petroleum-derived fuel oils. The project will process 400 tonnes of wood chips per day and produce an estimated daily output of 250 tonnes of pyrolysis oil.

Upon the completion of feedstock tests scheduled for August 2010, Clenergen intends to contract Envergent to prepare a front-end engineering design study for use of the technology for Marjestica, Beema Bamboo and Vanashree. The site specific designs, once completed, will be the property of Clenergen.

Mark Quinn, CEO of Clenergen, said: “The future implications of this technology offer a sustainable source of renewable power for both the consumer and captive end users. It allows the company to expand its fuel supply operations in South America, Africa and Philippines to produce wood chips for conversion to heating fuels, renewable power and eventually hydrocarbon fuels, both for domestic distribution as well as export to developed and industrialized nations.

“As an energy provider, Clenergen will be able to convert wood to either chips for biomass power plants, pellets or liquid fuels for co firing with coal or downstream to pyrolysis oil and its subsequent conversion to hydrocarbon fuel for renewable diesel, jet fuel and gasoline.”

Envergent Technologies, a joint venture between Honeywell’s UOP and Ensyn, is a provider of RTP rapid thermal processing for the conversion of biomass such as wood chips to pyrolysis oil. Pyrolysis oil, a liquid biofuel, can be utilized as heating oil and a source of power for heavy equipment.