5 May 2010 – Revonergy Inc. announces that the Company has been assigned the rights to develop and own a wood waste-to-energy ("WTE") project in Ondo State, Africa.
The Project is designed to use wood waste from an assortment of sawmills in the state of Ondo as fuel to generate electricity. The Project has been designed to be a 14MW electricity generating facility, however the Company considers that there is sufficient waste and demand for electricity in the vicinity to develop a second phase of equal or greater scale.
The project was developed by a UK company controlled by the President of Revonergy Inc., Mr. Ravi Daswani. Plc began developing this project in 2007.
To date, certain development events and documents have been completed. These include signing a memorandum of understanding with Ondo State governing the development of the Project and the state’s 10% equity financial participation; a Fuel Supply Study and Full Feasibility Study; a Project Design document for the United Nations approved Clean Development Mechanism cycle; selection of an independent UN approved validator for carbon credits; commercial and technical specification of plant and machinery, and the tender document for plant and machinery selection and Equipment Procurement Construction contractor.
At full planned development, the total project cost is projected at US$30million. A preliminary term sheet for financing of the project from an international bank, and competitive bids for the purchase of carbon credits from investment grade organizations have been received.
The Company notes that, while a substantial amount of work has been completed, additional project funding may be required to bring the Ondo Project to a bankable stage.
"A very significant amount of development has already taken place on the Ondo Project. We are now ready to proceed to the next phase, which consists of securing power purchase agreements, identification of a local partner and bringing the project to a financial and technical close.", states Ravi Daswani, CEO and President of Revonergy Inc.