Invest in a green technology that provides for the power needs of villages and communities throughout IndiaThe Business
The Company is a startup that plans to use a proven, reliable technology to build small to medium size (2-5 MW) biomass power plants in India. Logistics is a problem in India due to poor roads. Smaller biomass power plants operated with biomass produced close to each plant, which minimizes logistics costs.
The Company has a strong management team with the technical expertise to build and operate biomass power plants, and the entrepreneurial background to manage rapid growth. The Company already has strong interest from several customers, and the Indian government would purchase all excess power. The Company plans to build hundreds of these plants over the next few years. The Company also has government connections to facilitate approval of power plant applications.
Market
India has an enormous electric power shortage, and the deficit grows as demand continues to outstrip new production. The Indian government is firmly committed to renewable energy and provides very attractive incentives for biomass power plants. The government subsidizes 40% of the cost of building each power plant and provides a 10-year tax holiday.
The Company is seeking USD6 million to build the first plant as a demonstration of effectiveness and capabilities. Based upon the results from the first plant, the Company plans to finance subsequent plants with 70% bank financing. An additional USD16 million would be required to build 15 additional plants and fund operations until cash flow turns positive.
Sector: Alternative EnergySegment: Biomass Power PlantsRegion: IndiaFinancing Size: $5m to $20mContact: Rick O’Hara
Company: Arha EnergyTelephone: +1 512 541 2594Email: [email protected]