Clean Coal Technologies, Inc. (“CCTI”), a cleaner-energy
technology company, “fully-reporting” and listed on the OTCQB
(symbol CCTC), and Jindal Steel and Power Ltd. (“Jindal”) have
agreed to enter into a Technology License Agreement (“TLA”) in lieu
of the formerly announced Joint Venture Agreement contemplated
under the Memorandum of Understanding signed between CCTI and
Jindal on January 27, 2012. The decision to enter into the TLA was
arrived at jointly and is beneficial for both companies as it
allows Jindal to focus on its core business model in Indonesia of
supplying dry, high-quality coal to their steel and power
businesses in India while allowing CCTI to focus on the development
and marketing of its technology to third parties.
Under the TLA, CCTI will receive an on-going royalty fee on all
processed coal from Jindal majority-owned mines in the ASEAN
region. In addition, Jindal will pay CCTI a one-time license fee
immediately upon the signing of a pilot plant construction contract
(the “EPC Contract”) with SAIC Energy Environment &
Infrastructure (“SEE&I”) and the payment of the deposit to
SEE&I. The amount of the royalty fee and license fee are
awaiting committee approval by Jindal and will be announced
shortly.
For its ASEAN region joint venture initiative, CCTI has instead
entered into a binding terms of agreement for a joint venture with
the Archean Group (“AGPL”) to develop, deploy and market CCTI’s
Pristine M technology throughout the ASEAN region. It is
anticipated that the joint venture company (the “JV”) will be owned
55% by AGPL and 45% by CCTI.
In exchange for a 55% ownership interest in the JV, AGPL has
committed to contribute U.S. $4.0 million to the JV. Of this
amount, it is anticipated that U.S. $2.0 million will be used to
fund the construction of a 1:10-scale pilot plant in Oklahoma. The
remaining U.S. $2.0 million is a one-time license fee that will be
payable to CCTI upon successful commissioning of the pilot
plant.
Construction of the pilot plant in Oklahoma will commence
immediately upon execution of the EPC Contract and receipt of a
down payment to SAIC by the JV. It is expected that the EPC
Contract will be formalized this month and construction of the
pilot plant will begin in April with construction scheduled to be
completed within 16 to 24 weeks. Under the binding terms of the
agreement, AGPL will pay a U.S. $1.00 per ton ongoing royalty fee
for all coal processed from AGPL majority-owned mines provided that
no royalty fee will be payable for the first two million tons of
coal produced.
In exchange for its 45% ownership interest in the JV, CCTI will
contribute a 25-year exclusive license to develop, market and
deploy its Pristine M technology, covering the ASEAN countries,
including Indonesia, the Philippines, Cambodia, Vietnam, Malaysia,
Brunei, Thailand, Laos and Myanmar.
In addition to providing certain funding for the JV, AGPL has
also agreed to purchase a 6.7% stake in CCTI for U.S. $2.0 million.
It is anticipated that the funds will be paid to CCTI during the
week of March 19, 2012.
CCTI’s CEO, Robin Eves, stated: “We are delighted to have signed
this agreement with AGPL and agreed to restructure our transaction
with Jindal. The result is that CCTI will have a larger stake in
the ASEAN region joint venture, two commercial projects in
Indonesia immediately to follow the successful deployment of the
Pilot Plant, two royalty-paying clients, and license fees totaling
U.S. $2.75 million, up from U.S. $1.5 million, prior to the AGPL
transaction. AGPL’s agreement to make a direct investment of U.S.
$2.0 in CCTI will provide working capital and the ability to reduce
our debt.
Upon completion of these transactions, CCTI will have cemented
two very powerful commercial partnerships in Asia. We have agreed
to restructure our agreement with Jindal while aligning ourselves
with a strong and viable global coal producing, trading and
marketing company. We are very pleased to have agreed to work
towards a new license agreement with Jindal and look forward to
building on the very solid relationship that has been forged
between our two companies.”
Mr. Eves added: “The Archean Group has an enormous marketing
footprint in Asia, the Middle East and Africa. At present, AGPL
owns estimated reserves of 800 million tons of coal in Indonesia
and is currently exporting 2.5 million tons per annum to China and
1.5 million tons per annum to India. Plans are in place to ramp up
Indonesian production and exports to 10 million tons per annum by
2013. Their global trading and marketing network will be invaluable
for introducing CCTI’s Pristine M technology around the world.
Additional information regarding the terms of the TLA and EPC
Contracts will be disclosed upon execution of the agreements.
The Archean Group Companies
Archean Group is a professionally managed diversified
conglomerate having strategic business interests, investments and
over 30 years of operational experience in high growth sectors such
as mining & minerals, industrial chemicals & fertilizers,
shipping & shipbuilding, building materials, oil & gas
services, and energy & infrastructure.
Under the Group’s mining portfolio, Archean Group is present in
Indonesia since early 2004 and owns several thermal coal-mining
concessions that are under various stages of operations across
different coal rich provinces in Indonesia. Currently, with
combined estimated reserves in excess of 800 million tons and a
successful track record of production, Archean is on the path of
expansion. Being one of the very few Indian companies to be able to
operate in Indonesia at a large scale, Archean is looking to take
advantage of the enormous potential from the low rank coal deposits
in Indonesia, thereby strategically positioning itself to be a
significant, reliable and long-term player in the rapidly growing
Asia Pacific energy market.
Matters discussed in this press release contain forward-looking
statements. Investors are cautioned that such forward-looking
statements involve risk and uncertainties, which could
significantly impact the actual results, performance or
achievements of the CCTI. Such risks and uncertainties include, but
are not limited to, the time frame for construction of the pilot
plant, production of revenue, and the impact of rapid price and
technological change as well as competition in the energy market,
and supply uncertainties and other risks.
About Clean Coal Technologies, Inc.
CCTI, (http://www.cleancoaltechnologiesinc.com) a
cleaner-energy, technology company with major offices in Coral
Spring, Florida and New York City, NY, owns a patented process
technology to design and build, state of the art plants, which
convert coal into a cleaner burning fuel source. This technology
utilizes a patented pre-combustion beneficiation process. The
Company's patented end product “PRISTINE™” coal is significantly
more efficient, less polluting, more cost effective, and provides
more heat than untreated dirty coal. The principal elements of this
pre combustion technology are based on well-proven, off the shelf
components and equipment. Its clean coal technology reduces some
90% of chemical pollutants from coal, including Mercury, thereby
resolving emission issues affecting coal-fired power plants.
About Jindal Steel & Power Limited (JSPL)
Jindal Steel and Power Limited (JSPL) is one of India’s major
steel producers with a significant presence in sectors like Steel,
Mining, Power Generation and Infrastructure. With an annual
turnover of over US $2.9 billion, JSPL is a part of the over U.S.
$15 billion diversified O. P. Jindal Group. In the recent past,
JSPL has expanded its steel, power and mining businesses to various
parts of the world particularly in Asia, Africa and South
America.
The company produces economical and efficient steel and power.
From the widest flat products to a whole range of long products,
JSPL sports a product portfolio that caters to major infrastructure
and housing projects in the country. It also has the distinction of
producing the world’s longest 121 metre rails and large size
parallel flange beams, high strength angle irons for transmission
towers and high strength earthquake resistant construction
rebars.
The organization is equally concerned about the environment and
is committed towards restoring nature’s balance by maintaining a
clean and green environment. JSPL’s Corporate Social Responsibility
policy aims at bringing about a radical transformation in the
quality of people in and around the operation areas of the company
through positive intervention in social uplifting programs.
Forward-Looking Statements
Matters discussed in this press release contain forward-looking
statements. Investors are cautioned that such forward-looking
statements involve risk and uncertainties, which could
significantly impact the actual results, performance or
achievements of the Company. Such risks and uncertainties include,
but are not limited to, the time frame for production of revenue,
product development and commercial introduction, the impact of
rapid price and technological change and competition, manufacturing
and supply uncertainties and other risks.
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