CoalTek receives Sino-U.S. clean coal joint venture approval in China
Total investment in the joint venture project is expected to exceed $350 million
Marlborough, Mass., November 29, 2011 — CoalTek Inc., a Massachusetts-based clean energy company, announced that its clean coal processing facility in Inner Mongolia has received final approval from all requisite regulatory and governmental authorities in China.
CoalTek's approval is a successful completion of China's environmental review and engineering examination by a clean coal technology company. Total investment in the joint venture project is expected to exceed $350 million.
The facility will initially produce 10 million metric tons of processed high quality fuel per year, transforming low-grade brown coal into high-thermal value coal that burns more efficiently and produces lower emissions.
In anticipation of future demand, the facility has been designed with infrastructure that will allow for seamless expansion beyond the currently planned scale.
CoalTek will own the facility in a 50-50 JV with Yijian Group Co., Ltd., a Chinese corporation with wide-ranging energy and asset holdings. Cynergy-Global, LLC served as international advisor and played a key role in leading the CoalTek efforts to identify prospective JV partners, structure the JV partnership, prove the technology to both the commercial and scientific communities, and meet all financial and regulatory requirements. These collaborative efforts ultimately led to the successful approval of the CoalTek/Yijian JV.
CoalTek's approval comes only after a comprehensive review of the CoalTek technology by the Chinese government, whereby the company was required to demonstrate industrial-scale capability.
After clearing the energy and environmental hurdles, CoalTek also had to demonstrate the project's financial viability and overall positive economic impact on the Inner Mongolia Autonomous Region.
The CoalTek-Yijian JV represents the first fully licensed Sino/U.S. commercial partnership since the 2009 signing of a bilateral Strategic Partnership Agreement by Chinese President Hu Jintao and U.S. President Barack Obama. The bilateral agreement is comprised of several far-reaching measures to strengthen cooperation between the two countries on clean energy research, development and implementation.