K-Fuel Clean Coal Technology One Step Closer to Commercialization with Planned Construction of New Coal Blending Plant in Wyoming

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In moves to support the commercialization of its K-Fuel clean coal products, KFx Incorporated (AMEX:KFX)(Denver, Colorado) has recently announced progress in securing partnership agreements with Lurgi South Africa Limited (Senderwood, South Africa) and Arch Coal Incorporated (NYSE:ACI)(Saint Louis, Missouri).

Late last year KFx signed an agreement with Lurgi South Africa to jointly engineering and develop K-Fuel clean coal blending plants, worldwide. Lurgi's experience with coal gasification plant equipment and design should aid in commercializing the K-Fuel process.

This year KFx has signed an agreement with Arch Coal, which when approved by both parties will lead to the construction of a 700,000 ton/year K-Fuel coal blending and distribution plant to be located on Arch Coal's Black Thunder mine property in Wright, Wyoming. Arch Coal will supply feedstock waste coal, and run of the mine coal to the KFx operated plant. Arch Coal will also purchase the K-Fuel Plus end product.

Arch Coal's Black Thunder mine produced 68.3 million Tons of Powder River Basin coal in 2001 and is the second largest coal mine in the U.S.

The K-Fuel process essentially coverts waste coal into useable high btu product for use at coal-fired power plants and has proven low SOx and NOx emissions in test runs. The K-Fuel process is a pre-combustion solution to reducing emissions. Currently, most clean coal emission reduction projects have focused on post-combustion scrubbing technologies.

KFx Incorporated developed its K-Fuel pre-combustion coal processing system as part of the Clean Coal Technology (CCT) program in the early 1990's.

The first commercial scale K-Fuel coal upgrading plant was constructed at in Gillette, Wyoming in the mid 1990's at a cost of $42 million. Since then the process has been improved to provide cleaner burning upgraded coal products. KFx hopes to increase these improvements with the alliance with Lurgi and construct similar plants worldwide.

K-Fuel can reduce NOx emissions by 10-30 percent. It also meets SOx and proposed mercury regulations.

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