Company Overview
White Energy Company Limited is a public company (ASX: WEC / Other OTC: WECFY) based in Sydney, Australia and focused on the commercialization of coal upgrading technologies. White Energy owns the global marketing rights to the White Coal Technology, a patented process that dehydrates lower grade coals to improve the heat energy content and quality of these coals. The White Coal Technology upgrades lower grade coals into higher grade briquettes with properties similar to higher grade and value bituminous coals.
White Energy’s Process
The White Coal Technology is cost-effective and operationally superior to competing technologies. Raw feed coal is crushed and dried, obliterating its water content. The dry, crushed coal is then compacted, creating tight bonds between the coal particles and eliminating nearly all voids. The result is a higher-density, higher-energy briquette with low permeability and reduced propensity toward spontaneous combustion. To date more than 20,000 tons of coal has been upgraded in testing programs, including samples from Australia, China, Indonesia, South Africa and the US.
White Energy's Benefits
- Higher energy content: increases heat—the useable energy content—by between 30% and 200%, creating valuable power generation efficiencies.
- Mechanical process: a mechanical process that is designed to work at coal mines, not a complex chemical process.
- Low upgrading costs: favorable conversion economics allow the product to compete with bituminous coals.
- Lower spontaneous combustion risk: upgraded coal is physically and chemically stable, and can be handled, stored and transported as normal coal.
- Lower transportation costs: process reduces moisture, resulting in up to 30% decrease in load volumes and concomitant transportation costs.
- Reduced greenhouse gas and pollutant emissions: more efficient burning results in lower CO2, SO2, NOx and Hg emissions.
- Reduced levels of coal dust: significantly reduces the quantity of dust when compared with unprocessed sub-bituminous coal.
White Energy's Strategy
White Energy aims to act as an enabling technology partner. Coal upgraded by the White Coal Technology can supply each stage of the coal technology lifecycle, offering significant environmental benefits. White Energy will continue to improve its existing process, and will invest in developing its technology with an emphasis on coking coal applications. White Energy also aims to invest in coal technologies for the future. The Company will continue to develop and acquire synergistic technologies in coal upgrading and emissions reductions, in response to the growing global market for coal and related end products. Developing a unique suite of coal upgrading and emissions reductions technologies will enable White Energy to partner with a growing number of players in the coal value chain. White Energy will continue its drive toward achieving key player status in a zero emissions world.
Recent Developments
- Development Agreement signed in North America with NRG Power Marketing, LLC (NRG Energy Inc.) and Buckskin Mining Company (Kiewit Corporation) to commence a detailed feasibility study to evaluate the economic, technical and logistical viability of constructing at least a one million ton per annum coal upgrading plant in the Powder River Basin, USA.
- BHP Billiton appointed as WEC global marketing agent in exchange for $35M funding package, and all relevant documentation has been executed (WEC drawn US$10M in funds).
- Joint venture with Bayan Resources finalized, construction of first Indonesian commercial plant commenced. Encouraged by the significant market opportunity, White Energy and Bayan recently agreed to increase the annual output of upgraded coal to 5 million tons. In addition, Bayan has agreed to a 5-year commitment to purchase a portion of the upgraded coal from the joint venture, which equates to over US$200 million offtake obligation.
- Second Indonesian joint venture announced with Adaro Group and Itochu Corporation. Financial and technical feasibility studies are nearly complete; WEC initially intends to build a 1 million ton per annum plant, ultimately increasing capacity to 8 million tons per annum.
- Final stage of China feasibility with Datang International Power Company Ltd. commenced. WEC aims to build a 1 million ton per annum plant, ultimately increasing the plant’s capacity to 10 million tons per annum once feasibility studies are completed.
- During FY07 the Company raised a significant amount of capital to fund its development program. This included A$45 million raised in a convertible note issue completed in October 2007 led by Deephaven Capital Management.
- Secured grant from Australian Government of A$4.35M to fast-track construction of a new demonstration plant.
- American Depository Receipt program initiated.
- Coal samples from potential JV partners in China, Russia, Indonesia, Australia and South Africa have been successfully processed.
White Energy Company Profile
White Energy Company Fact Sheet
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