WALNUT, Calif., April 7, 2014 /PRNewswire/ -- VIASPACE Inc. (OTCQB: VSPC) today announced that VIASPACE and its Nicaraguan partners are forming a company in Nicaragua to own and operate the Giant King Grass plantation and co-located 12 MW power plant. The company is named "Energia Reino Verde" or in English "Green Kingdom Energy".
At the International Biomass Conference held in Orlando, Florida March 24-26, 2014, VIASPACE CEO, Dr. Carl Kukkonen, reported progress on the Nicaragua project in a special session dedicated to international projects. The 7 th annual International Biomass Conference with more than 1,100 attendees featured workshops on Bioenergy Project Development and the Pellet Supply Chain, as well as tracks on biomass power, biogas, advanced biofuels and biobased chemicals, pellets and international projects. There were also more than 200 exhibitors.
According to Kukkonen's presentation, VIASPACE and Nicaraguan partner AGRICORP have signed a project development agreement. The 12 MW biomass power plant will be fueled by a 2,100 acre Giant King Grass plantation that is co-located with the Miramontes rice plantation which is located on and irrigated from Lake Nicaragua. Giant King Grass has been growing well there since 2012. Rice husks from the Miramontes rice mill will be a secondary fuel providing about 5% of the overall fuel requirement.
The project will generate 84,000,000 kWh of saleable electricity which will be transmitted on the national grid and sold both to the grid and to private customers. The project lifetime is 25 years. Meetings have been held with both debt and equity financiers. It is expected that 70% of the project cost will be covered by debt and 30% by equity. The prefeasibility study has been completed and the formal feasibility study process is underway.