The company previously announced the signing of a Heads of Agreement with Datang International Power Company Ltd regarding the forming of a joint venture to build binderless coal briquetting plants with a capacity of one million tonne as the first stage of a 10 million tonne development at Datang’s sub-bituminous coal mine in Inner Mongolia, China.
Since that time significant progress has been made regarding infrastructure approvals to permit Datang to advance the project.
Given this progress, both White Energy and Datang have now jointly commenced a final feasibility study to verify the economics and logistics of the proposed project.
White Energy Managing Director, Mr John Atkinson said: “Today’s agreement is a significant step in securing a major coal processing plant with one of China’s largest utility companies, with access to vast quantities of sub-bituminous coal.
“Apart from helping make sub-bituminous coal emission compliant and energy efficient, our technology has shown to substantially reduce water content in the treated coal, which is a significant advantage in reducing overall transportation costs.”
Documentation has now been signed regarding the commencement of the feasibility and independent parties jointly appointed to complete the exercise. It is anticipated that the results of the feasibility will be completed by the end of June 2007.
If, as anticipated, the result of the feasibility are positive then the next step is for White Energy and Datang to formally complete their joint venture arrangements and documentation.
The Technology:
White Energy is the exclusive worldwide license holder of the binderless coal briquetting process that enhances relatively poor quality coal to significantly increase its energy efficiency.
The process has two major benefits: it results in substantial transportation and operational cost savings and it creates environmental credits by reducing emissions. Competitive, independently verified technology – the White Coal Technology was developed by CSIRO in conjunction with TraDet Inc, K.R. Komarek Inc and The Griffin Coal Mining Company Pty Ltd. Independent tests, by both expert engineers and coal producers, have proven the process to be more cost and operationally efficient than competing technologies.
About Datang Power International Company Limited:
As one of the largest independent power producers in China, Datang Power is engaged in the development and operation of power plants, the sale of electricity and thermal power, and the repair and maintenance of power equipment and power-related technical services. Currently, the Company owns 4 operating power plants, managed 17 power companies. Total installed capacity amounted to 15,410MW as at the end of 30th June 2006.
Datang is listed on the Hong Kong and London Stock Exchanges and has a market capitalisation of AUD10 billion.