Environmental Clean Technologies Limited (ECT) wishes to announce its Victorian coal-drying and export project has advanced to the next stage with the formation of the Special Purpose Vehicle (SPV) with Vietnam based TinCom.
The purpose of the SPV is to provide a legal entity within which the Feasibility Study, Detailed Design, Construction and Operation of the Coal Drying Enterprise may be executed.
The project, announced Monday 22 June 2009, provides for the establishment of an SPV, triggering the necessary investment of funds in Australia by TinCom to undertake the site-specific project feasibility study. This study will be led by our design engineers, Arup.
“TinCom has secured their US$100M investment licence, ECT has secured the coal and site via agreement with Great Earth Energy Alliance Corporation Pty Ltd (GEAC). With the establishment of the SPV, we have taken another exciting step toward commercialisation in Victoria,” said ECT Chief Executive Kos Galtos.
TinCom representative Mr. Linh Vu Dac added, “TinCom is excited by the project and looks forward to continued progress toward eventual operations of the business.”
Project Milestones completed:
- ECT and TinCom enter into Co-ordination Agreement – 25 February 2009
- TinCom secures Investment License – 16 October 2009
- ECT secures Coal Supply, Site and Site Services – 25 November 2009
- ECT and TinCom form the SPV – 12 January 2010
- Finalise Feasibility Study scope Q1 2010
- Site-specific Feasibility Study 6 months
- Project Evaluation – Investment Decision 1 to 3 months
- Project Structuring 3 to 12 months
- Construction and commissioning 24 to 36 months
- Production and Asset Management Ongoing
The benefits of this project include:
- To ECT – A$5 per tonne royalty over 30 years
- To TinCom – Security of supply of a competitive, high quality, back coal equivalent (BCE) feedstock for the export market at a stable price.
- To Victoria – Resource export earner. Jobs during construction and ongoing operation, plus the flow on to downstream industry – rail and port.
- To the Environment:
- Lignite in its wet state is emissions intensive when used to generate power. By drying lignite, emissions are significantly reduced.
- The water recovered from the coal can be used in the power station. Loy Yang power station uses around 34 GL a year. At full production, the Coldry plant could return around 20 GL a year to the environment.
For further information:
Kos GaltosChief Executive +613 9909 7684 of [email protected]