Clean Coal, Jindal partnership gets rolling

FOUR months after cementing a 25-year technology agreement allowing each company to focus on their respective core business models, Clean Coal Technologies says it has received its first licensing fee under the deal from Jindal Steel and Power.
Clean Coal, Jindal partnership gets rolling Clean Coal, Jindal partnership gets rolling Clean Coal, Jindal partnership gets rolling Clean Coal, Jindal partnership gets rolling Clean Coal, Jindal partnership gets rolling

Process diagram courtesy of Clean Coal Technologies

Donna Schmidt

New York-based Clean Coal, which converts raw coal into cleaner burning and more efficient fuel, said it had accepted its first $375,000 from Jindal under the agreement it established to contract a coal moisture reduction plant at Jindal mines in India.

“This payment is another significant milestone for Clean Coal Technologies and its shareholders,” president and chief executive officer Robin Eves said.

“We firmly believe that we will offer one of the most practical and effective clean energy solutions in the global marketplace and our agreements with major entities, such as SAIC and Jindal Steel, certainly bolster our leadership in this industry and our ability to bring other major players to the clean energy table going forward.”

Under the agreement, Clean Coal will receive an ongoing royalty fee of $1 per metric ton on all coal processed from Jindal majority-owned mines in Southeast Asia.

Clean Coal will also receive up to 4 million tons per annum with a waiver of additional royalty fees on further processed coal up to a total of 8Mtpa.

In addition to the royalty fee, Jindal will pay Clean Coal a one-time license fee of $750,000.

The license fee will be paid in two installments, with the first $375,000 upon signing of a pilot plant construction contract and $375,000 upon the successful testing of Jindal's Indonesian coal.

The agreement, announced in April, was in lieu of the formally announced joint venture agreement via a memorandum of understanding signed between the partners in January.

It is intended to enable each company to develop its core business model.

The deal will let Jindal focus on supplying dry, high quality coal to its steel and power business in India while Clean Coal will be able to focus on the development and marketing of its technology to third parties.

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