Construction of 7-MW biogas plant in Caribbean to start in Q2

Construction is expected to commence in the second quarter of 2015 on a 7-MW biogas power plant in the US Virgin Islands, which will use as feedstock Viaspace Inc’s (OTCBB:VSPC) Giant King Grass.

The US bioenergy company said on Tuesday it partner in the project, Tibbar Energy USVI LLC, has assured it that the needed permits for the agriculture-and-power production project will be secured by February 2015.

In the autumn of 2012, Viaspace agreed to supply its proprietary energy crop for a plantation and an anaerobic digestion plant on the island of St Croix. Today, it announced that the Giant King Grass nurseries are ready to be transplanted to the new farms there. This will be the Caribbean's first carbon neutral, base load, renewable power plant, noted Viaspace chairman Kevin Schewe.

Once up and running, the 7-MW power plant will sell its output to the USVI Water and Power Authority (WAPA) under a 25-year deal. The power purchase agreement’s term can be extended by five years.

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