Clean Energy Combustion Systems Inc. (CECU.OB) has signed an agreement with Lucky Power International Ltd. for an exclusive technology license patented in the People’s Republic of China for the recovery, purification and compression of raw landfill gas into high quality Compressed Natural Gas.
The raw gas is collected from the decomposition of municipal waste in the landfills associated with large Chinese cities. The fuel can be used to power diesel engines of all sizes. Under the terms of the agreement, Clean Energy will issue seven million treasury shares in return for exclusive access to all the commercial development of this technology in the People’s Republic of China. Clean energy will own a 70% interest. The company anticipates achieving net cash flow next year growing substantially over the next five years.
The technology is operating at a pilot facility in Shenzhen, China. The CNG produced in Shenzhen is sold via a long-term contract to the local municipality which uses it to fuel its municipal vehicles. Commitments are being made for the development of a minimum of two new landfill sites over the next two years and a total of 10 new installations during the next five years. Each facility will have a production lifespan approaching 30 years.
Clean Energy is responsible for providing the equity financing for each new project. Lucky Power will retain a 30% interest in the Chinese operations and provide management expertise on a contractual basis in China. With the same agreement Clean Energy has also acquired first rights of refusal for the commercial development of this technology in all other global markets outside the People’s Republic of China.
The Company anticipates capacity 11,250,000 cubic metres (M(3)) of CNG per annum in the first year of operations, growing to 2,925,000 M(3) of CNG per annum by year five. In addition to the marketable CNG, a substantial source of additional revenues for Clean Energy and Lucky Power is anticipated through international trading of Carbon Emission Reduction (CER) credits
This technology should provide significant benefits for all stakeholders: significant savings in the cost of fuel for the local municipality; reliable cash flow for the joint venture local operators; healthy and secure ROI for owners and investors; major enhancement to local air quality; creation of a significant non-fossil clean burning alternative fuel; long-term benefit to the global environment.
Clean Energy recently announced an agreement with North Island Green Energy in British Columbia, Canada, for run-of-river hydro electricity generation.
About Clean Energy
Clean Energy is a development-stage US public company based in Vancouver, BC, Canada, that is moving forward aggressively to acquire long-term contracted and indexed revenues with customers such as government, non-government and utility agencies that will provide stable revenues and incur minimal costs with respect to sales and collections. The company also seeks to achieve revenues from the commercialization of its proprietary technologies and development of renewable energy projects.
Loading...