U.S. Clean Coal Business Links with Indian Companies for Asian Markets and Oklahoma Pilot Plant

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Jindal Steel & Power Limited (BSE:532286) (JSPL) (New Delhi, India) and Clean Coal Technologies Incorporated (CCTI) (New York, New York) have entered into a technology licensing agreement in which the two companies will focus on the development and marketing of a commercial platform combining the two companies' strategic interests.

The technology licensing agreement benefits both companies as it allows JSPL to focus on its core business in Indonesia of supplying dry, high-quality coal to its steel and power operations in India, and allows CCTI to focus on the development and marketing of its technology to third parties.

CCTI will receive an ongoing royalty fee on all processed coal from JSPL majority-owned mines in the Association of Southeast Asian Nations (ASEAN) region. JSPL will also pay CCTI a one-off license fee immediately upon the signing of a pilot plant construction contract with SAIC Energy Environment & Infrastructure (NYSE:SAI) (Mclean, Virginia) and the payment of a deposit to that company. The size of royalty and license fees will be announced after approval by JSPL.

To further its ASEAN initiative, CCTI has entered into binding terms of agreement for a joint venture (JV) with India's Archean Group (Chennai) to develop and deploy CCTI's Pristine-M technology throughout the ASEAN region.

It is anticipated that the joint venture will be owned 55% by Achaean and 45% by CCTI. In return for its stake, Achean has committed to contribute $4 million to the joint venture. The construction of a 1:10 scale pilot plant in Oklahoma will receive $2 million in funding, and the balance will be for a one-off license fee to CCTI on the successful commissioning of the pilot plant.

Construction of the pilot plant is scheduled to begin in April and should be completed within 16 to 24 weeks. Under the agreement, Archean will pay a $1 per ton on all coal processed from majority-owned mines, provided that there is no fee payable for the first two million tons of coal produced within 16 to 24 weeks.

In a statement, CCTI said that the Pristine-M process addresses the need for coal that is dry and can safely travel long distances across the ocean without re-absorbing moisture. The technology has attracted the interest of some of Asia's leading companies. Asia is an ideal market for Pristine-M, until U.S. producers complete the infrastructure to enable large-scale export of clean Powder River Basin coal to Asia and the rest of the world.

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