Clean Coal Technologies (CCTI), which has a patented technology to convert raw coal into a more efficient fuel with less emissions, said Sept. 17 that it has executed a site agreement with a major coal power station to host a pilot plant at its power plant in LeFlore County, Okla.
“The execution of this agreement is a major milestone in the commercialization of our unique processes. We have found an ideal site to commission and test the pilot plant scheduled to be delivered to the Oklahoma facility within the next six weeks,” said Robin Eves, President and CEO of Clean Coal Technologies.
The site agreement also includes financial terms of a technology license that would be available to the aforementioned power station’s affiliates anywhere in the world.
The construction, commissioning and testing of the pilot plant is being conducted by Science Applications International Corp. under the terms of an EPC agreement signed earlier this year with Clean Coal Technologies. Although the pilot plant has been engineered by SAIC around CCTI’s unique concept for upgrading high moisture coal, a key component of the pilot plant is a devolatizer section that is also the core of the CCTI’s Pristine and Pristine-SA clean coal processes.
Together with certain front end test equipment under design by Carrier Vibrating Equipment of Louisville, Ky., Clean Coal Technologies said it will have put into place a very robust platform to rigorously test coal types from anywhere in the world, reliably generating key data to inform the design and functioning of commercial scale modules using any of the Company’s proprietary processes.
“The pilot plant represents an important step forward in the development of a viable coal upgrade process that enhances the sustainability of coal as a staple fuel for power generation anywhere in the world,” said Eves. “The bottom line is that the technologies that will be introduced on the back of the Oklahoma test plant could have positive implications for boiler efficiencies and the cost of power generation, and will benefit the coal industry in general on a global basis.”
“SAIC has done an outstanding job in the design of the plant,” said Ignacio Ponce de Leon, Chief Operating Officer of CCTI. “The major differentiator is that the design imparts a high degree of flexibility – dial-in capabilities that competently handle the tremendous variability of feed coal that presents itself not only across coalfields, but even within single seams of coal. It is apparent that some of the technologies that have preceded ours have failed to perform adequately in large part because they have not accounted for the important impact on process parameters that stem from variations in the feed coal within a single mining site. The test program and optimization of the test plant will use only the coal varieties available at the plant; no foreign coal will be tested at the site. Foreign coal and other US grades will be tested at the CCTI Testing Facility that will be established at an independent site after the commissioning.”
The company didn’t reveal the name of the host power plant in a Sept. 17 press release, but did reveal that it is the coal-fired Shady Point plant through the AES Shady Point LLC subsidiary of AES Corp. (NYSE: AES) in a Sept. 17 SEC filing. It said the site agreement term is eight months, with active operations scheduled for approximately eight weeks including ramp-up and shut-down. The agreement calls for the company to pay AES Shady Point approximately $94,000 for the use of the site, with additional pro-rated fees due if active operations continue for more than the planned eight-week period.
“Also included in the Site Agreement, the Company has agreed to extend to AES Corporation, AESSP’s parent corporation (‘AES’), concessional terms for a future technology license on royalties and license fees that will be charged to the Company’s anticipated commercial clients,” said the SEC filing. “Such terms would apply in the United States or anywhere in the world where AES has majority-owned operations.”
U.S. Energy Information Administration data shows coal for the Shady Point plant coming earlier this year from local Oklahoma coal supplier George Colliers, and from the North Antelope Rochelle mine in the Powder River Basin of Peabody Energy (NYSE: BTU).