Clenergen Corporation. (PinkSheets:CRGE)

The world’s hunger for energy is never satisfied. As earth’s population continues to grow and economies expand, the need for energy is rising exponentially.  At the forefront of this demand are developing nations, specifically India. According to the Indian government, the country of 1.1 billion citizens will quadruple their demand for energy needs over the next 25 years. Firms that embrace this shift in energy demand will be in a position to capitalize from it.

We feel a company that is proactively initiating long-term projects that have the potential to be highly profitable is Clenergen Corporation. (OTCBB: CRGE). Over the last two years the firm has secured exclusive licenses for its’ renewable energy technologies as well as begun to implement new commercial energy projects in India, which will go on line in 2010.

India is the world’s largest democracy and offers humungous growth opportunities for companies that can supply the increasing need for energy. The rising quality of life among citizens and technological advances has made India an attractive target for foreign investment. Clenergen Corp. is moving to be one of the first foreign national energy companies in India.  The company has developed specific technologies that allow it to be a leader in producer clean energy for one of the world’s most populated countries.

The renewable energies technology processes we are speaking of include ‘Tree Adaption’ and ‘Gasification technology.’ Both processes allow the company to produce clean energy in growing economies.

Clenergen has identified the bamboo and marjestica trees as reliable feedstock/biomass sources for the companies’ gasification technology. This process leads to increased growth rates in these plants of 20-40%.  The biomass produced from these materials allows the company to utilize renewable alternatives to create energy.

The second process is a pyrolysis gasification technique that uses chemical combustion to convert the biomass materials into gas that when combined with high levels of heat and pressure converts into steam, which in turn is used to create electricity.

The company is currently setting up two power plants in India capable of producing 71 megawatts of energy. Both plants will use the gasification process, making the plants carbon neutral (zero carbon footprint). The company is also setting up 20,000 acres of plantation area to grow the plants needed. Recently, the firm purchased an operational power plant in the Indian city of Tamil Nadu that it is online.

The competitive advantage that Clenergen possesses it the ability to create large amounts of organic matter in shorter periods of time.  The company expects to produce 500 megawatts of renewable energy over the next five years through its operations and acquisitions.

Since the initial share price of $0.80 in August, the stock has been in a strong uptrend.
Currently, the stock is approaching breakout levels near the all-time high on increasing daily volume. This stock looks ready to take off technically. Combine this with the solid fundamentals of the company and strong growth opportunities and we are setting a price target of $2.00 on the stock before the end of the year.

Disclaimer: Author is long CRGE stock.