Feb 9, 2015 (SeeNews) - The 12-MW biomass power plant in Nicaragua, which will use as feedstock Viaspace Inc’s (OTCBB:VSPC) Giant King Grass, is feasible and bankable, the feasibility study has concluded.
Viaspace said on Monday the feasibility study has formally validated the technical and business case for the power plant co-located with a Giant King Grass plantation. It reviewed all aspects of the project, including the agriculture plan, fuel logistics, grid interconnection and the environmental, permitting and legal issues.
The project company, Energia Reino Verde or Green Kingdom Energy, is a 50/50 joint venture between Viaspace and Agricorp of Nicaragua. Once operational, the biomass facility will be able to produce 84 million kWh of electricity per year for 25 years. Apart from the Giant King Grass energy crop, the station will be fueled by rice husk as a secondary fuel and rice straw as a backup fuel.
Viaspace chief executive Carl Kukkonen noted that the company wants to replicate similar projects globally.
“The Nicaraguan government policy is to move to 97% renewable energy and low carbon fuels before 2030. This project fits perfectly into their planning strategy as they are looking for reliable base load electricity and projects that can provide regulation and capacity services,” said Viaspace chairman Kevin Schewe.