(EnergyAsia, February 6 2012, Monday) — US-based Clean Coal Technologies Inc (CCTI) said it has signed a binding memorandum of understanding (MOU) with India’s Jindal Steel and Power Limited to form a joint-venture company to market and deploy its Pristine-M(TM) technology in Southeast Asia.
For its 65% stake, Jindal will pay US$6 million which includes US$4 million to CCTI for an exclusive licence of the Pristine-M(TM) technology. For its 35% stake, CCTI said it will contribute a 25-year exclusive license to the JV company to market and deploy the technology, covering the ASEAN countries including Indonesia, the Philippines, Cambodia, Vietnam, Malaysia, Brunei, Thailand, Laos and Myanmar.
CCTI said it will be paid US$1.5 million by Jindal upon signing of the agreement, and US$2.5 million upon successful commissioning of a 1/10-scale pilot plant.
The remaining US$2 million will be used to fund the full construction of the pilot plant which will take between 16 and 24 weeks to complete.
CCTI said it expects construction of the one-million-ton/year commercial plant at Jindal’s mines in Indonesia is expected start sometime this month.
The partners are still negotiating final terms of their agreement, which according to CCTI, includes the Indian firm funding the working capital for the joint venture company until the New York-based company is able to fund its share or revenues from the joint venture are sufficient to cover operating costs.
“This is a defining moment in CCTI’s mission to introduce our Pristine-M(TM) Technology as the global solution to high moisture coal. Forming a joint venture with a major global company, Jindal Power and Steel, further validates the capabilities of our technology,” said Robin Eves, CCTI’s President and CEO.
CCTI claims to own a patented process technology to convert coal into a cleaner burning fuel source using a “mild gasification” process that removes moisture and volatile matters without pulverising or pelletising the coal. The coal remains highly resistant to moisture re-absorption as it is naturally coated during the process.
CCTI said its patented end product Pristine(TM) coal is significantly more efficient, less polluting, more cost effective, and provides more heat than untreated dirty coal.
The technology is based on long-established benefaction processes and utilises off-the-shelf components and equipment. The process may remove as much as 90% of chemical pollutants from coal, thereby helping to resolve emissions issues affecting coal-fired power plants all over the world.
As part of the Jindal Group, Jindal Steel and Power Limited (JSPL) is a leading Indian steel producer with a significant presence in the mining, power generation and infrastructure sectors.