$100M coal-waste-to-energy project in China

November 27, 2006

A small publicly-traded American company claims a recent clean coal power plant contract it won in China is worth $100M USD.

Renewable energy and water purification specialist EESTech Inc., (OTCBB: EESH.OB) says it has been awarded a purchase agreement contract worth $US100 million by Liaoning Fuxin Coal Group of Northern China for a 10 megawatt power plant.

The agreement to build a 10 megawatt power generator represents the first stage of a two stage contract.

Stage two is to involve the construction of an additional 20 megawatt capacity with the total 30 megawatts that will be produced being purchased by the Fuxin Coal Group under a twenty year power purchase agreement.

The Fuxin Coal Group is one of the largest coal companies in China, with Northern China coal resources accounting for 49.25% of the nationally available reserves. China is the biggest coal producer in the world with an output of over 1.9 billion tones of coal per year.

The contract is for a coal mine methane utilization project. As China produces over 10 billion m3 of methane emissions per year from coal mines, EESTech is to demonstrate the efficient and environmentally compatible use of this wasted methane in the production of electricity.

The company's Hybrid Coal and Gas Turbine (HCGT), developed in Australia, has been designated a Clean Coal Technology by the Australian and United States.

HCGT uses coal waste and ventilated air methane to produce electricity. This can significantly reduce fugitive methane gas emissions from underground coal mines and potentially save the coal mining industry millions of dollars annually in reduced expenditure for managing waste coal, the company says.

EESTech was awarded the marketing rights to establish the required power generating capacity using the HCGT technology by ComEnergy Pty Ltd and its partners who developed the Hybrid Coal and Gas Turbine.

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