Environmental Clean Technologies Limited (ECT and ASX code: ESI) is pleased to announce the signing of a co-operation agreement with Tincom of Vietnam as the first step towards re-establishing the Victoria Coldry project.
- Tincom and ECT re-engage on flagship Victorian Coldry project
- ECT to complete the Design for Tender (DFT) work with Arup
- Tincom to use DFT and other data to prove the economics of a large-scale production facility located at Loy Yang, Victoria
During meetings held last week, Tincom and ECT agreed the broad terms of a re-engagement to pursue the deployment of the Coldry technology in Victoria. The first tangible step in this process was to agree and sign a co-operation agreement.
ECT Executive Chairman Mike Davies commented “We are pleased to have established a new relationship with Tincom based on a fuller understanding of their technical and commercial requirements. At the meetings in Ho Chi Minh City, Tincom expressed confidence in the Coldry technology and confirmed their interest in seeing Coldry produced on a large commercial scale in Victoria. The fact that a co-operation agreement was negotiated in a short period attests to the level of confidence and trust each party has in the other”
Tincom Chairman Luong Van Thang agreed, adding, “We are pleased that ECT and Tincom have established a basis for good co-operation, and have now put in place a solid partnering approach to develop the Victoria Coldry project. We look forward to the completion of the DFT, and to the subsequent economic analysis which will confirm the project’s value by delivering on its strategic intent of improving energy security for Vietnam.”
Mr. Davies also commented “Consistent with my advice to the market in August and September, the Board and Management of ECT are committed to the practical delivery of initiatives that will drive shareholder value. The re-engagement of Tincom in the Victoria Coldry project provides an early opportunity for commercialisation of Coldry technology in Australia.”
Background – Victorian Coldry Project
The Victoria Coldry Project will be the first commercial scale deployment of ECT’s Coldry technology. The project aims to construct a 2 million tonnes per annum (mtpa) facility adjacent to the Loy Yang power station, with commissioning targeted for 2014.
Phase 2 aims to increase capacity from 2 to 5 mtpa; Phase 3 would take production to 10 mtpa, with the final expansion to 20 mtpa targeted for 2025.
Phase 1 export tonnages can be handled within the existing rail and port infrastructure. Phases 2 to 4 are subject to Victorian Government implementation timeframes for infrastructure expansion.
A company has been established (Victoria Coldry Pty Ltd – VCPL) to build, own and operate the Coldry plant as a Joint Venture between ECT and Tincom. ECT will license its proprietary Coldry technology to VCPL in return for reward structures to be agreed following completion of sufficient engineering and financial analysis, following the DFT.
The Coldry process takes 60% moisture content brown coal and dewaters it to less than 14%, effectively upgrading it to a high-energy black coal equivalent (BCE) pellet suitable for use in power generation and other value-added processes and products.
For Further Information Contact:
Mike Davies – Managing Director +61 3 9909 7684 or firstname.lastname@example.org