(MENAFN - ProactiveInvestors - Australia) Environmental Clean Technologies (ASX: ESI) has undertaken a capital initiative through the placement of a A2.5 million bond to ensure it achieves its key objective of constructing the Coldry Commercial Demonstration Plant in Victoria.
The Strategic Deliverable Bond is a no interest, convertible bond that will be placed with engineering development partner ARUP.
This will ensure the delivery of the balance of the Design for Tender program and other pre-construction engineering works associated with the development and delivery of the Coldry technology.
The coal drying technology uses a low temperature and low pressure process, and when applied to lignite and some sub-bituminous coals, the relatively simple Coldry beneficiation process produces a black coal equivalent in the form of pellets.
Coldry pellets have equal or superior energy value to many black coals and produce lower carbon dioxide emissions than raw lignite.
The 12-month bond provides Environmental Clean Technologies the option to satisfy Arup invoices with cash.
Advanced Lignite Demonstration Program
Environmental Clean Technologies has also submitted a detailed expression of interest for part of a 90 million government funding package, which has been designed to accelerate the development and commercialisation of new lignite upgrading technologies in the Latrobe Valley.
An independent panel appointed by the Department of Primary Industries will review the expression of interest, and advise the company of the outcome in mid-December 2012.
Shortlisted applicants are then required to submit a detailed application by mid-March 2013.
Victorian Coldry Project
Coldry has been developed in Victoria specifically to economically dry high moisture lignite.
Environmental Clean Technologies began its design for tender for a commercial demonstration plant and subsequent 2 million tonne per year commercial plant in October 2011.
The first stage of the Coldry plant will involve a pre-commercial demonstration module of about 170,000 tonnes per year capacity to mitigate scale-up risk.
Following the successful demonstration of technical and financial feasibility, the plant can then expand to 2 million tonnes capacity in the medium term.
Long term, the potential to expand to 20 million tonnes a year exists subject to additional rail and port capacity being provided.
Planning, approvals, procurement and construction are expected to progress during 2013, with completion of construction and subsequent commissioning and optimisation during 2014.