Another deal in China. This one's taking off this morning.
Deal looks to be worth many times WHDs cap.
West Hawk, Luan to develop clean coal bases in China
2007-09-24 10:13 ET - News Release
Dr. William Hart reports
WEST HAWK SIGNS STRATEGIC COOPERATION AGREEMENT WITH LU'AN
As clarification to an unknown sourced news release that originated from SinoCast via Comtex dated Sept. 20, 2007, titled, "Luan coal mine group signed contract with West Hawk," West Hawk Development Corp. has signed a new energy and coal chemical strategic co-operation agreement with Luan Mining Industries Group to develop three new energy and clean coal chemical bases in China and in North America. They are: (1) Shanxi Lu'an new energy and clean coal chemical base; (2) Xinjiang new energy and coal chemical base; and (3) a third North America site yet to be determined, clean coal chemical new energy base. The new CTL technology and components, developed by New York Energy Group (NYEG), will be used for the development of new energy and coal chemical projects in all three bases.
The CTL plant is projected to be more efficient and cleaner than traditional technology and the modules are less capital intensive. This technology will apply clean technology for control of NOx, SOx, particulates and mercury, and it is projected that CO2 will be used in the system with carbon and oxygen separation. The CTL unit will also supply cost-effective co-products with materials that would otherwise be waste.
West Hawk Development has signed an exclusive marketing and services agreement with New York Energy Group to supply all New York Energy technology in China.
Dr. Jinsheng Chen has been appointed to the position of president and chief executive officer of the West Hawk Asia energy unit.
This first WHD/NYEG coal to liquids unit will be a 50/50 joint development between West Hawk Development and the Luan Mining Industries Group with New York Energy Group supplying all of the gasification and liquids technology and components.
This first project will consist of a CTL plant that will produce between 25 million and 35 million gallons of liquids per year with diesel fuel being the primary product. A feasibility study is under way between West Hawk China Operations and Luan Industries. Until the feasibility study is completed, the economic viability will be uncertain. The projected cost of the first unit is approximately $200-million (U.S.). The strategic co-operation agreement contemplates building six units.
Bill Newell, president and chief executive officer of New York Energy Group, stated, "I am extremely pleased with the work of Dr. Hart and Dr. Chen and West Hawk to bring about this opportunity for the WHD/NYEG companies and to apply this state-of-the-art technology to a China market that is in dire need of clean and cost-effective energy."
West Hawk Development is in the process of furthering its arrangement with New York Energy Group and has signed a memorandum of understanding (MOU) to be the exclusive distributor of all of its coal to liquids and coal-related carbon dioxide usage technology in North America. Final contractual arrangements are in the process of being completed.
West Hawk Development has the coal assets to build out this technology in North America and Luan has the coal assets in China. The British Columbia Groundhog asset, the Northwest Territories Tulita Coal asset, and a western U.S. coal asset are all potential sites for coal to liquids and CO2 usage.
West Hawk is also working on a coal to liquids site in West Virginia and has had several meetings with Governor Manchin who is a major supporter of coal to liquids because of energy security reasons for the U.S.
The first China CTL plant will be designed to be a 500-ton-per-day plant. The output is projected to be approximately 25 million to 35 million gallons per year of clean products. Subsequently, more units can be added in parallel to increase production. West Hawk Development and Luan will raise the financing to support this project.
Chairman Ren of Luan Industries Group stated: "I am extremely excited about the potential of the clean and environmentally friendly coal to liquids technology and I am pleased that West Hawk Development has introduced it to us. China must use clean coal technology to advance its great potential in a cost-effective way and in an environmentally friendly way and it appears that this technology can get the job done."
William Polan, president and chief executive officer of Global Investments, introduced the New York Energy Group Technology to West Hawk Development and stated, "I'm very excited about having the opportunity to work with one of the world's foremost experts in coal gasification, Dr. Wm. Mark Hart."
Going forward, West Hawk Development is going to streamline its properties and focus its activities on coal gasification and CO2 eradication.
We seek Safe Harbor.
westhawkdevelopment.com |
