(EnergyAsia, September 5 2011, Monday) — Sino Clean Energy Inc, a Nasdaq-listed producer and distributor of coal-water slurry fuel (CWSF) in China, said it has signed a memorandum of understanding (MOU) and a preliminary engineering, procurement, and construction (EPC) agreement with Nathalin Welstar Energy Company Limited to jointly build a coal water slurry plant in Thailand.

Nathalin Welstar would invest in a 50,000-metric ton CWSF plant and a power plant with a minimum 6,000 KW net output along with associated infrastructure. The company, a subsidiary of Thai marine petroleum transport company Nathalin Group, focuses on developing environmentally-friendly energy sources, such as solar, wind and clean coal.

A leading CWSF manufacturer and distributor in China, Sino Clean Energy said it plans to visit the site in Thailand to begin the process of consulting on the technical and financial aspects of the project. It did not give an estimate on the cost of the proposed project.

Baowen Ren, Sino Clean Energy’s chairman and CEO, said:

“I am encouraged that we reached a pre-EPC agreement with Nathalin Welstar Energy following five months of negotiations. We highly regard the prospects of cooperation, not only because of the possible economic benefits, but also because of the strategic value of international partnership and expansion for the company.

“If the pilot project succeeds, both parties plan to apply the cooperative model to larger scale CWSF facilities and electric power plants in Thailand. The company believes that this pilot project might open up access for the company to a potentially large CWSF market in Southeast Asia.”

According to consultant Frost & Sullivan, Sino Clean Energy is the third largest producer of coal-water slurry fuel by sales in China with seven plants in Shaanxi, Liaoning and Guangdong provinces. CWSF is a cleaner alternative to burning coal aggregate in heating, industrial and power generation for residential and industrial applications.