(MENAFN- ProactiveInvestors - Australia) Jatenergy (ASX: JAT) has secured a non-binding memorandum of understanding (MoU) for the company's coal processing technology with a leading Chinese technology company.
The MoU covers the key terms of a licence for Jatenergy's Coal Plus coal upgrading technology with Zengzhou Zhongneng Metallurgy Co.
Coal Plus combines standard pyrolysis technology with a proprietary heat exchange technology that makes the process more efficient. This has the potential to unlock the value from large, low grade coal assets that are currently uneconomic to mine.
Key outputs from the Coal Plus process are electricity from gas production, coal tar for chemical feed-stocks and coal char, which is potentially suitable as a semi-soft coking coal.
The licence with Zengzhou Zhongneng intially covers a coal upgrade project in Indonesia, and will be put in place during the next eight weeks, subject to commercial and technical due diligence.
New export rules governing low grade ores and local processing in Indonesia give Jatenergy the opportunity to leverage potentially large projects using the company's existing technology along with proven local staff and contacts.
Indonesia is the world's largest exporter of thermal coal and could provide a major market opportunity for Jatenergy.
Coal Plus technology is already in use in three operating facilities with combined throughput of 2.2 million tonnes per annum in the Fugu County of Shaanxi Providence in China.
A further two facilities are being constructed in Fugu and Yulin, and will have a combined planned throughput of 8 million tonnes per annum.
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