Allgreen plans $102M for Indian biomass

Singapore-based Allgreen Energy India said today it plans to spend Rs 500 crore ($102.2 million) to build 10 biomass projects in India.

Allgreen says it wants to build the biomass plants during the next two to three years. Each will have a production capacity of 6.5 MW, the company said.

Allgreen plans to start work on biomass projects in Karnataka, Tamil Nadu and Madhya Pradesh by March, with production expected to begin within a year.

Allgreen is planning to sell the energy to private companies.

The company is using a mixture of 70-percent debt and 30 percent equity to finance the biomass plants.

Allgreen's plants are expected to use biomass gasification technology developed by the Indian Institute of Science.

In addition to wind and solar, biomass is one area of renewable energy expected to grow in th enext couple years in India. Last month, state-run agency Rajasthan Renewable Energy said the government there plans to spend $1.6 billion on renewable energy projects, including wind and biomass plants (see Rajasthan plans to spend $1.6B on wind, biomass).