Clean Coal Technologies, Inc. (OTCQB: CCTC) (PINK: CCTC) is a late-stage start-up company that has introduced proprietary patented and patent pending technologies to convert raw coal into a cleaner, more efficient fuel source. Use of the company's innovative process makes possible the upgrade of low-rank coals, including lignite, into premium fuels that are high in calorific content and low in pollutants.
Clean Coal Technologies' trademarked products, Pristine™ and Pristine-M™, are significantly more efficient, less polluting and more cost-effective than untreated coal. The company's products offer solutions for coal users involved in power generation, steel, and coal-to-gas or coal-to-liquids projects.
Based in New York, Clean Coal Technologies, Inc. (OTCQB: CCTC) (PINK: CCTC) has introduced proprietary patented and patent pending technologies to convert raw coal into a cleaner, more efficient fuel source. Pristine™ and Pristine-M™, Clean Coal Technologies' trademarked products, are significantly more efficient, less polluting and more cost-effective than untreated coal.
In late 2010, Clean Coal Technologies retained new management whose mission was to establish a commercial platform to market its innovative processes worldwide. In so doing, it became quickly apparent that the quickest path to market was through the Asian market that, at present, is the most dynamic coal-based energy market in the world.
The Asian opportunity, initially, is being addressed through Clean Coal Technologies' Pristine-M™ process that solves the two key problems faced by companies that offer a dry coal product. These problems are that very dry coal is dangerous to transport owing to the risk of spontaneous combustion and, second, that the dried coal tends to re-absorb moisture quickly before it reaches the end user. The company's Pristine-M™ process successfully addresses both problems, and does so very cost-effectively. Unlike most competing processes, Clean Coal's process does not involve pulverization and subsequent briquetting of the coal. The company's "Vapor Phase Deposition" process allows for the increase of the calorific content of the raw coal beyond what would be achieved naturally by the removal of moisture alone.
Currently, Clean Coal Technologies, together with Archean Group, its partner in Good Coal Pte, Ltd, is working with SAIC on the construction of a 1:10 scale pilot plant that will be tested at the site of a major U.S coal-fired power company in Oklahoma. Tests are underway to complete the final design of the key components of the plant.
Owing to the unique design of the plant, there are no problems anticipated in scaling up from the pilot plant to the full-scale unit. The pilot plant is on track to be commissioned in early 2013 after which Clean Coal Technologies and Good Coal Pte will enter aggressively into a marketing program to deploy the technology widely, primarily in Asia.
Coal is one of the world's most important fuel sources. Driven by burgeoning demand for electricity in Asia, primarily in India and China, international coal markets, at present and for the foreseeable future, are among the most dynamic segments of the world's energy markets. At the same time, continued dependence on coal for power generation in most countries, including the United States and much of Europe where coal-fired generation still accounts for about 40% of total generation, has clashed with the need to find a more environmentally friendly fuel source, including clean coal.
Below are a series of statistics that help frame the importance of the world's coal markets:
Global coal mining is expected to generate revenue of $1.46 trillion in 2012, up from $562.6 billion in 2007.1
Global coal use shows stable long term growth and is set to rise faster than all other energy sources.2
High demand for coal has increased the pressure for environmentally friendly energy to be used throughout the world.
Clean coal represents a truly global opportunity with major coal users like: U.S., China and India.
In an effort to curb the effects of untreated dirty coal, the U.S. energy industry alone has invested $90 billion to deploy clean coal technologies.3
Coal remains the dominant fuel in the energy mix at over 40%, with some regions, notably Asia, where it is 60%.4
Many countries have a sizeable supply of low rank coal, but few efficient ways to process it into a usable fuel source.5
Export countries like Indonesia with low-rank coal can use Clean Coal's Pristine™ technology to revitalize their industry.
Science Applications International Corporation("SAIC"; NYSE: SAI), has entered into a 15-year contract with Clean Coal Technologies whereby it has acquired the right to provide all engineering and EPC services to the company, globally, in exchange for a participation in the company's revenues. SAIC is a Fortune 500 enterprise that is currently the single largest engineering consultant to the U.S. government in the world. SAIC served as the research arm of the Department of Energy for over two decades during which time it came into contact with the Clean Coal Technologies' processes and began a relationship that began in 1998. SAIC employs some 41,000 scientists, engineers and support staff worldwide.
Clean Coal Technologies has executed 25-year agreements with the Archean Group ("Archean"), which owns some 800 million tons of coal reserves in Indonesia and is currently exporting 4 million tons of low-rank coal to India and China. As part of this relationship, a Singapore corporation doing business under the name of Good Coal Pte, Ltd. ("Good Coal"- Clean Coal Technologies 45%, Archean 55%) has been formed, capitalized and already executed a contract for the construction of a 1:10-scale commercial pilot plant to be located on the site of a major U.S. power company in the state of Oklahoma. Through Good Coal, Archean will fund the US$2 million cost to build the pilot facility. The Archean Group has also invested directly in Clean Coal Technologies, thus far acquiring 6.7% (convertible debenture) of the company's outstanding capital with an option to acquire up to a total of 19.99%.
Clean Coal Technologies has executed a 25-year Technology License Agreement with Jindal Steel & Power who also owns reserves of low-rank, high moisture coal in Indonesia that it is anxious to upgrade. Jindal Steel & Power is a major Indian multinational corporation with businesses in steel, mining and energy that span the globe. Coal samples from its mines have already been tested with excellent results, using the Pristine-M™ process. On the basis of the test results, Jindal agreed to acquire its 25-year license and pay Clean Coal Technologies an upfront licensing fee even before the construction of the 1:10 scale commercial pilot.
Clean Coal Technologies is led by a seasoned executive management team with decades of experience and accumulated industry knowledge. Clean Coal's CEO, for instance, is an expert at extracting value throughout the energy value chain and has held senior positions in companies such as Cargill and UBS where he was a Managing Director.
Robin brings to Clean Coal Technologies over thirty successful years of global experience in all aspects of the energy markets. He has held senior management positions in London, Geneva and the US. Robin has conducted business in the US, Europe, Russia, the Middle East, Africa, South America and, more recently, in India and Asia. He has extensive experience in India (his birth country) and has strong industry and political contacts throughout the world. During his career, Robin has specialized in joining small teams of professionals and has successfully built them into global companies or divisions within larger organizations. He has very strong banking contacts in the US and Europe and brings the confidence of the investment community to Clean Coal Technologies and the interest from several large funds. He is an expert at extracting value throughout the energy value chain and has an extensive knowledge of global business cultures and ethics. Robin has held senior positions in companies such as Cargill and UBS where he was a Managing Director.
Ignacio Ponce de Leon brings over 30 years of professional experience to Clean Coal Technologies, including over 25 years in Wall Street. He began his professional life in 1979 at the National Planning Department, Presidency of the Republic of Colombia, where he worked on the Carbocol/Exxon joint venture to develop Cerrejon Zona Norte, one of the largest coal mines in the world. He also worked with the team that oversaw the preparation of the National Energy Study, one of Latin America's most ambitious econometric descriptions of a national energy economy. In 1995, he joined JP Morgan where he formed what became Wall Street's leading fixed income research team covering corporations globally in Emerging Markets. Ignacio graduated from the London School of Economics (BSc. Econ.) and from the Fletcher School of Law & Diplomacy (Tufts-Harvard) with an M.A.L.D. degree.
Dr. Edward Jennings comes to Clean Coal Technologies with vast and varied expertise. He is a mechanical engineer by profession, but he carries an MBA and a PhD in Finance from the University of Michigan. He has claim to extensive experience on various trade missions in the Far East, Europe, and Africa for several corporations and governmental agencies. He is also the former president of two Universities: the University of Wyoming and Ohio State University. His writing has been widely published in academic journals.
Al Knapp brings over 30 years of professional expertise to Clean Coal Technologies, having worked in various roles within the heavy industrial/engineering construction business. For 25 years, Mr. Knapp held senior and executive positions in business development, general management, and project management for The Industrial Company (TIC). TIC is a wholly-owned subsidiary of Kiewit Corporation and one of North America's largest general industrial construction companies; servicing a wide range of markets including power, oil and gas facilities, and renewable energy. He later served as Project Manager for the former Pittsburg and Midway Coal Mining Company (P&M), now Chevron Mining Inc., focusing on project design and construction management in coal-centric states including Kentucky and New Mexico.
Dr. Paul, currently a Senior Scientist at SAIC, brings over 25 years of diversified work experience in coal science and coal technologies. Broad areas of skill include strategic planning, development, implementation, and evaluation of Federal programs and commercial ventures for the development and deployment of advanced clean coal technologies. Specific areas of expertise include coal conversion into clean coal, liquid fuels, chemicals, and hydrogen, as well as the design of compliance strategies to meet current and future environmental regulations. Since 1992, as a Senior Scientist at SAIC, Dr. Paul has provided technical and management support to the Department of Energy's (DOE) National Energy Technology Laboratory (NETL). Dr. Paul holds a Ph.D. Materials Engineering Science, Virginia Tech, 1988; an M.S. Chemical Engineering, Virginia Tech, 1984; a B. Tech. Chemical Engineering, Indian Institute of Technology, India, 1978 and an MBA University of Pennsylvania 2003.
Low rank coal tends to have a high moisture content, which makes the coal much less efficient when used in a coal-fired plant for energy production. Unfortunately, with most existing technologies, upgraded coal that has had its moisture removed tends to spontaneously combust and reabsorbs moistures in both transportation and storage. Furthermore, traditional upgrade technologies involve the pulverization of coal and briquetting it back into a solid form, which is exceedingly expensive and time consuming.
Clean Coal Technologies' Pristine-M™ process uses patented technology to solve these problems before it reaches the end user, and does so very cost-effectively. This unique process is designed to remove moisture from coal and produce a coal of exceptional stability, i.e., one that is able to be transported safely over long distances and without re-absorbing moisture. Unlike most competing processes, Clean Coal does not involve pulverization and subsequent briquetting of the coal. Instead, the company's "Vapor Phase Deposition" process allows for the increase of the calorific content of the raw coal beyond what would be achieved naturally by the removal of moisture alone.
In addition, Clean Coal's second technology, the Pristine™ process, addresses the issue of volatile chemicals in coal. By extracting theses chemicals, Clean Coal significantly reduced levels of toxic air pollutant precursors, such as sulfur and mercury. The Pristine™ process also produce liquid byproducts that contain hydrocarbon compounds that, via chemical synthesis, may be converted into commodity chemicals for an additional revenue stream.
From an industrial perspective, Clean Coal Technologies' processes are straightforward and elegant. The industrial plant, an original design by SAIC, is a modular and scalable concept, as opposed to constructing a single plant to the desired capacity. It should be noted that several prominent players have failed to up-scale their pilot plants as the scale-up ratios ranged from 1:50 to 1:100, as compared with Clean Coal's 1:10.
The Pristine™ and Pristine-M™ standard modules can handle 167K and 240K tons per annum, respectively, in continuous mode. Owing to the extraction of volatile matters, namely, a significant amount of "coal derived liquids" ("CDLs"), the modules are self-fueling once they have been initiated using propane or diesel fuel. The valuable CDL byproducts add significant value to the Pristine™ process, greatly improving plant economics. As a fundamental design parameter that sought to minimize technology risk as much as possible, the commercial plant will be built using well-established, tried and time-proven components that are available widely and off-the-shelf.
There are numerous advantages of the modular design. Most important is that scale-up risk is minimized. If a company wants to increase capacity, it merely adds as many identical units as needed. Performance risk is minimized, as failure of a component will not disable the entire plant. Plant expansions and renovations can be made in affordable increments rather than in the usual "step-up" fashion that entails a degree of over-capacity at the outset.
To further validate Clean Coal's technology on an industrial scale, the company plans to construct a 1:10 scale pilot plant in the United States. Clean Coal and its various technology partners are presently in negotiations with a major U.S. power company to locate the pilot plant on the site of its coal-fired power generation facility in Oklahoma. Future work on full-scale commercial plants in Indonesia is expected to follow what the Company believes will be a successful commissioning of the pilot plant in Oklahoma by year-end 2012 or early 2013.
Based on its current models, Clean Coal's processes are expected to offer exceptional plant economics. Even assuming zero debt in the capital structure, and considering only the cost of the plant with only basic ancillary equipment, DCF analysis indicates an investment recovery period of just over 3 years and an ROI in the range of 35%. With "normal", e.g., 20% debt in the capital structure, both the recovery period and the investments returns improve significantly, with the investment recovered in just over 2 years and an ROI in excess of 50%. The financial modeling that illustrates these results was based on actual test results.
Going forward, Clean Coal Technologies is committed to market its patented processes in the global energy economy. Now, with an experienced management team in place, highly sought-after technologies and world-class execution, the company has positioned itself to capitalize on the extraordinary demand for cleaner, premium coal, with an unequivocal commitment to building long-term shareholder value.
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Any statements contained in this website regarding Clean Coal Technologies, Inc.'s expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements involve uncertainties and risks that could cause actual performance and results of operations to differ materially from those anticipated. The forward-looking statements contained herein represent the Company's judgment as of the date of publication of this website and it cautions readers not to place undue reliance on such statements. Clean Coal assumes no obligation to update any forward-looking statements to reflect events after the initial publication of this website or to reflect the occurrence of subsequent events.
Came out NOV 12th 2013 10Q