Clean Coal Technologies (OTC Markets: CCTC), which has a technology called Pristine to convert raw coal into a cleaner burning and more efficient fuel, said June 18 that it is finalizing orders for the components needed to begin construction of a pilot plant in Oklahoma.
Currently all plant components are on order and deliveries are beginning to ship. The company said it is dependent upon the workflow schedules from vendors/manufacturers, and providing they continue to perform and deliver, as they have to date, CCTI will meet or be slightly ahead of schedule. The start of construction is projected in July and delivery of the pilot plant to the coal-fired utility in mid August with commissioning to take place in September.
In October, the plan is to move the pilot plant to a permanent CCTI testing facility where the company will establish a permanent home for its technology.
The company’s Indian client, Jindal Steel & Power, continues to show weekly interest in the progress of the pilot plant following its recent purchase of over a billion tons of coal reserves in South Africa, Clean Coal said. It is anticipated that once the pilot plant is successfully commissioned and CCTI has re-tested Jindal’s coal, the company will move immediately into commercialization.
Clean Coal said that China has recently proposed to ban imports of low-Btu coal from countries like Indonesia, making its coal-upgrading technology a key need for low-Btu coal producers hoping to ship into that market.
“The news from China is good for CCTI,” commented Robin Eves, Chief Executive Officer of Clean Coal. “It means that coal producers outside China who want to enter, maintain or expand their exports to China, will be obligated to upgrade those low-rank coals that would be covered by the ban. The market is beginning to absorb the impact of the ban, which logically, should lead to a decline in low-rank coal prices and higher prices for higher quality coal types that will be in demand in China. It is in the price differential between low rank and premium coals that the CCTI process pays the highest dividends.”
Eves continued: “In the interim, coal producers are feeling the pinch but we expect that the marketing environment for our technology will be very favorable once the pilot test plant is up and running. Currently, we are pursuing one of Indonesia’s most powerful coal producers, a company has a team dedicated solely to the task of finding viable coal upgrade technologies. We are also pursuing an opportunity involving Korean companies that are seeking to acquire long-term coal supplies in Indonesia, but only in conjunction with a viable upgrade technology.”