Astonfield Renewable Resources and AREVA Renewable have entered into a strategic partnership to implement 100 MW of biomass power plants across India at an estimated cost of Rs 550 -630 crores. Work on the first plant is scheduled to begin in West Bengal in the last quarter of 2009.
Under the terms of the agreement, AREVA?s Bioenergy unit in Chennai will be responsible for plant design, construction and commissioning. The group will also co-invest in these projects alongside Astonfield.
The agreement between Astonfield and AREVA to build on the first 100 MW will attract considerable investment interest to the biomass sector in India, requiring approximately Rs 550 – 630 crores of capital expenditures.
The EPC agreement between Astonfield and AREVA also allows Astonfield to focus on its leading project development organization and capabilities to continue to build its project pipeline and deliver ?shovel ready? projects complete with Power Purchase Agreements (PPAs), project financing, land and permits.
?The time is ripe to prove the scalability of the biomass sector in India and make it a meaningful and profitable contributor to rural development. Through our strategic partnership, Astonfield and Areva will demonstrate the commercial and technical model that the biomass sector needs to become a vibrant and productive part of the next stage of growth of the country?s energy infrastructure,? avers Ameet Shah, Co-Chairman, Astonfield Renewable Resources Limited.
?Areva is the reference in its field and we look forward to continuing this relationship through this and many future successful biomass projects in India,? says Sourabh Sen, Co-Chairman, Astonfield Renewable Resources Limited.
?We will bring our worldwide expertise of 100 bio-energy plants in operation or under construction, which represents more than 2800 MW of installed capacity and reduces 3 million metric tons of CO2 – equivalent emissions each year?, emphasised Anil Srivastava, CEO of Areva Renewables.