Clean tech company Adama Technologies Corporation has signed an agreement for a 2.5 MW municipal waste gasification project in Bucharest, Romania with guarantee for float of waste and power purchase.

The Romanian project will use municipal waste residue to generate electricity. The project benefits of a power purchase agreement with the local grids, with guarantees of local companies, at premium rates and a biomass supply agreement with local companies, according to Adama Technologies. Each agreement is valid for a term of minimum 10 years, with an option for another 10 years.

The project has already received equity commitments for 15 percent of the amount to be invested. The permitting process has begun and recent changes in applicable law have streamlined this process so that permits can be expected in three to six months.

“This could potentially open up a market for the use of biomass in countries where municipal waste is huge problem," said Aviram Malik, CEO of Adama Technologies Corp.

Last year, the company announced its plans to start a line of tire recycle factories in Romania, with partial funding from the European Union and local Government. The company was expecting to open the first factory within a year, after which, three additional sites will be set up by 2012.

editor@romania-insider.com