India power generator buys 7 million tons of wood chips

New York City, November 23, 2009 — Green Energy Resources received a letter of intent from an Indian power company to supply more than 7 million tons of wood chips valued at over $576 million over a 12-month period.

India wants a five-year supply contract — $2.8 billion dollars over 5 years. The order poses challenges for Green Energy Resources to meet a supply that would require about 15 shipments monthly or a shipment of about 40,000 tons every other day.

The foremost obstacle is freight. The location of ships at a locked in rate to handle the capacity for the buyers. The second major issue for the buyer and the Government of India is to provide project financing in the U.S. to Green Energy Resources for wood procurement, and port facilities.

Discussions are ongoing. India is planning to purchase upwards of 36 millions tons of wood chips annually from worldwide sources as a part of their renewables obligations under Kyoto.

The procurement is currently underway on a global scale. The international community of nations, including the US, are planning and upgrading their climate change strategies in advance of next months meeting in Copenhagen, Denmark. The U.S. is expected to make an announcement shortly.

Green Energy Resources is a company working to preserve world forests — not cut them. The company sources its wood from urban wood waste streams, recycled wood, storm damage and tree farms.

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