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Cleantech Transit, Inc. (CLNO.OB)
Cleantech Transit, Inc. was founded to capitalize on technology advances and manufacturing opportunities in the growing clean energy public transportation sector. The Company has expanded its focus to invest directly in specific green projects that can maximize shareholder value. Recognizing the many economic and operational advances of converting wood waste into renewable sources of energy, Cleantech has selected to invest in Phoenix Energy (www.phoenixenergy.net). This project can generate shareholder returns as well benefit the Company’s manufacturing clients worldwide.
CLNO is in the final stages of closing its initial interest in the Merced Project and is currently working on completing the necessary documentation and expects closing the transaction soon. As previously announced Cleantech Transit, Inc. has the option to earn up to 40% of the Merced Project and the Company plans to continue to work towards increasing its interest in the Merced Project as we move ahead.
In addition, the 500 KW biomass gasification facility located in Merced, California that Cleantech Transit, Inc. previously reported has successfully passed its interconnection tests and is now connected to the utility distribution grid.
The Merced plant is expected to produce enough electricity to power about 400 homes. The plant connected to the electricity grid under California’s feed-in-tariff with a 15-year power purchase agreement.
Biomass can be understood as regenerative (renewable) organic material that can be used to produce energy. Manufacturers generate an enormous amount of waste residue in the process of making products such as lumber, furniture, pallets, and paper. In general, less than 50 percent of the tree ends up in a final product, and the balance represents a vast underutilized resource. Given the age of the industry, it is not surprising that the technologies for converting wood to energy are well established. Whether for space heat, process heat, or electricity production, no other type of fuel has been used successfully in more types of system designs.
Biomass gasification facilities can fire boilers that heat schools, offices, institutions, and manufacturing facilities. The net fuel cost is cheaper than heating oil, natural gas, and coal. In addition, proper engineering, wood burning systems emit fewer pollutants into the air than coal and oil systems.
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