By
Greentech Lead Team:
Clean Coal Technologies (CCTI), a cleaner-energy technology company, will form
a joint venture corporation in the ASEAN region with Jindal Steel and Power.
Jindal Steel
and Power will pick up 65 percent stake in the venture, while the balance 35
percent stake will be held by CCTI.
For its 35
percent stake in the joint venture, CCTI will contribute a 25-year exclusive
license to market and deploy Pristine-M Technology, covering the ASEAN
countries including Indonesia, the Philippines, Cambodia, Vietnam, Malaysia,
Brunei, Thailand, Laos and Myanmar.
For its 65
percent stake, Jindal will pay $6,000,000 into the joint venture, $4 million of
which will be paid to CCTI for an exclusive license of the Pristine-M
Technology. $1.5 million will be paid to CCTI upon the signing of the
agreement, and $S2.5 million upon commissioning of a 1/10-scale pilot plant.
The remaining $2 million will pay for the full construction of the pilot plant.
It is
anticipated that the pilot plant will take between 16 and 24 weeks to complete;
construction is expected commence in February, 2012.
Construction
of the pilot plant will be followed by an initial 1,000,000 ton
commercial plant at Jindal’s mines in Indonesia. The joint venture company will
market and deploy the Pristine-M Technology to third parties throughout the
ASEAN region.
Jindal will
fund the working capital for the joint venture company on terms to be
negotiated in joint venture agreement until CCTI is able to fund their share or
until joint venture revenues are adequate to cover operating costs.
“This is a
defining moment in CCTI’s mission to introduce our Pristine-M Technology as the
global solution to high moisture coal. Forming a joint venture with a major
global company, Jindal Power and Steel, further validates the capabilities of
our technology,” said Robin Eves, director, president and chief executive
officer of Clean Coal Technologies.
Jindal Steel
and Power is one of India’s major steel producers with a significant presence
in sectors like steel, mining, power generation and infrastructure. With an
annual turnover of over $2.9 billion, JSPL is a part of the over $15
billion diversified O. P. Jindal Group.