Clean Energy Technologies, Inc. announced that Vermont Renewable Gas, LLC, an affiliate of CETY in which CETY indirectly retains 49% ownership interest, has been selected by the United States Department of Agriculture (USDA) as one of 171 Wood Innovations Grant recipients. Administered by the USDA’s U.S. Forest Service, this $74 million initiative is made possible in part by the bipartisan Infrastructure Law and the Inflation Reduction Act (IRA). VRG was selected to receive $300,000 towards installation and testing of CETY’s high temperature ablative fast pyrolysis reactor (HTAP Biomass Reactor) at VRG’s planned facility in Lyndonville, Vermont. This grant will also support an operator training program at the facility.

VRG and 170 other Wood Innovations Grant recipients were selected based on their ability to spark innovation, create new markets, and support renewable energy. In a public press release, Deputy U.S. Secretary of Agriculture Xochitl Torres Small announced that “these investments will support good paying jobs for families and communities.” The USDA announcement emphasized the impact that these chosen projects will have in producing renewable energy, promoting healthy forests, creating wildlife habitat, and reducing the threat of catastrophic wildfires.

Centered around CETY’s HTAP Biomass Reactor technology, CETY will design, build, and operate the VRG – Lyndon facility. VRG will convert waste biomass from Northeastern Vermont’s working lands into renewable fuel gas and BioChar fertilizer as a byproduct. The renewable fuel gas generated will be converted into renewable electricity and heat. The plant is expected to deliver in excess of 18,000 MWh of renewable electricity and 1,500 tons of BioChar annually and be fully commissioned within 12 months.

CETY is focusing on high temperature ablative pyrolysis (HTAP) applications for agricultural waste, forestry waste, industrial and municipal solid waste, and landfill waste. This builds on the current increase in state and federal incentives for investment in clean energy solutions for commercial and industrial users, as well as a surge in interest in clean energy solutions in municipalities. In combination with existing CETY technologies and solutions, these projects will advance the Company’s mission to offer a more vertically integrated and scalable platform for clean energy solutions across multiple industries in most key markets globally.

CETY’s existing organic rankine cycle (ORC) business will also capitalize on each biomass project, with the opportunity to deliver Heat Recovery Solutions. Such synergies increase energy value by 15% for the biomass project. CETY’s portfolio of biomass projects will in turn drive top line and bottom-line growth elsewhere in the Company creating long term predictable income.

More importantly, it provides a footprint for future projects using HTAP Biomass Reactor technology in the rapidly growing biomass renewable energy sector. The HTAP Biomass Reactor is a unique and proprietary process that transforms organic waste by using ultra-high temperatures in an anaerobic environment to produce renewable electric power, BioChar fertilizer and high heating value fuel gas in addition to other commercially valuable chemicals.

Kam Mahdi, CEO of CETY, stated “CETY is delighted by the USDA’s decision to invest in VRG – Lyndon. The news of USDA’s decision follows CETY’s recent announcement that it has entered into a Memorandum of Understanding with Asia Management Energy Capital Partners Pte. Ltd. (AMEC) for up to $12 million in growth capital to support VRG. This combination of public and private commitments will propel VRG and CETY to achieve success in this highly profitable and growing industry. CETY values the impact that the federal Infrastructure Law and the IRA are presenting to VRG’s project, starting with this Wood Innovations Grant. CETY looks forward to completing final permitting for the Lyndonville facility and commencing construction.

VRG will serve as a model for developing new projects that capture market share in this highly profitable and growing industry. By vertically integrating biomass into our business, we are also able to grow our heat recovery business horizontally. We hope that our future projects will be large by orders of magnitude and have a profound impact on the environment while bringing CETY new sources of income. Our new renewable biomass energy projects are expected to further expand our goal of becoming a complete solution for industrial and municipal scale projects in the strategic markets we are targeting.”

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