Agreement gives go ahead to staged construction of Coldry plant for 100M tonnes
Environmental Clean Technologies Limited wishes to advise it has signed a Coordination Agreement with Thang Long Investment and Commercial Stock Company (TinCom), which seals the deal on the establishment of a Special Purpose Vehicle (SPV) to invest funds into a feasibility study for the construction of a Coldry plant licensed to produce up to 100 million tonnes per annum of Coldry over the next five decades.
ECT Chief Executive Kos Galtos spent the weekend in Vietnam meeting with Tincom executives and related parties to ensure this huge deal, the biggest in the company's history, was realised.
"This is a very proud day for ECT and a monumental milestone for us and our shareholders" he said.
"It means TinCom has committed to provide the necessary investment in the technology to fund a very detailed project feasibility study in the first instance, which will lead to the staged establishment of a commercial plant."
Under this agreement, the project will receive a 50 year licence from ECT, which represents an increase of a further 20 years from previous announcements that indicated the term of the contract with TinCom would be 30 years, and provide TinCom with 20 million tonnes per annum of Coldry within 10 years.
"The increase in the term from 30 to 50 years shows our greater belief and confidence that there are commercial opportunities for Coldry that will require substantial additional production capacity in order to satisfy, that are beyond our initial expectations, Mr Galtos said.
In February 2009 ECT and TL signed a Heads of Agreement, which constituted the establishment of an initial commercial relationship and this Coordination Agreement now outlines the next five stages for the project, including:
- Establish a company
- Undertake a detailed, specific, project feasibility study
- Assessment of feasibility study
- Decision of project viability
- Increase Coldry plant capacity in four phases over a 10 year term to reach 20 million tonnes of Coldry per annum from an initial capacity of 150,000 tonnes per annum
Phase 1: At practical completion (approximately three years from commencing the project) the capacity of the Coldry Plant will be 2 million tonnes per annum.
Phase 2: Two years after practical completion the capacity of the Coldry plant will be increased by an additional 3 million tonnes per annum.
Phase 3: Three years after practical completion of phase 2 expansion, the capacity of the Coldry Plant will be increased by an additional 5 million tonnes per annum.
Phase 4: Three years after completion of Phase 3 expansion, the capacity of the Coldry Plant will be increased by an additional 10 million tonnes per annum.
This deal has been brokered with assistance from Podium Energy, which confirmed TinCom had partnered with Ocean Bank W60, partially owned by Petro Vim - Vietnam's State owned oil company.
Podium Director Doug Townsend said the Coordination Agreement was the beginning of a new era for ECT.
"While this is the company's first major deal for the supply of Coldry, we will be continuing to negotiate others in this global market, which appears ready and willing to back our technology," Mr Townsend said.