INNER MONGOLIA, CHINA: Clean Coal Technologies (CCTI) has signed a memorandum of understanding with Sino-Mongolia International Railroad Systems (SMIRSC) of the Inner Mongolia Autonomous Region in China.
The memorandum provides specific milestones to determine the suitability of CCTI's technology for enhancing around 2 billion tons of lignite coal deposits as a fuel source for a new power station and gasification plant, scheduled for construction in the fourth quarter of 2008.
CCTI will conduct coal sample testing to confirm the suitability of the lignite for the CCTI process. If successful, the two parties plan to sign a joint venture agreement in October. Under the joint venture, CCTI would construct an initial plant to process the 1.5 million tons per year required by the new power plant. Afterward, subject to a successful outcome, the CCTI project would be expanded to an output capacity of around 15 million tons over a five year period. The majority of the coal enrichment project would be focused on coal gasification and the production of chemical by-products.
SMIRSC will be responsible for providing raw coal, and purchasing the upgraded product, plus the establishment of marketing and distribution for all chemical and coal products produced by the joint venture. SMIRSC will also be responsible for providing the sites, utilities, services and transportation infrastructure required by the project. Details of the capital structure, scale of capital investment and other cooperative conditions for joint venture are subject to further discussion between the parties.
The CCTI process captures and separates impurities and contaminants in coal, making the fuel burn more cleanly. The removed exhaust gas and contaminants can then be refined and sold on the secondary chemical market.