This MoU will be converted into a joint venture (JV) agreement before 30 September 2011.
Under the agreement, WPG will give its coal assets in South Australia to the JV, and Evergreen will provide the technology.
The 50/50 JV will take the first 10mtpa of upgraded coal produced in Australia using the K-Fuel process, and further has the first right to partake in new coal upgrading projects that Evergreen undertakes in Australia.
WPG said that Evergreen’s K-Fuel clean coal process can significantly reduce air emissions and other pollutants from coal-burning power plants.
Testwork has shown that PRB coals can be upgraded from a calorific value of 4,500kcal/kg and 31% moisture to 5,600kcal/kg and 15.5% moisture, and generally similar upgrading results have been achieved with Indonesian coals.
Test burns of the K-Fuel product in several US power stations have authenticated the process.
