September 11, 2008

GreatPoint, Datang Huayin to Build Natural Gas Production Facility in China

GreatPoint Energy, a developer of hydromethanation process to convert coal, petroleum coke and biomass into clean natural gas, has signed a framework agreement with the Datang Huayin Electric Power Company to build and operate a natural gas production facility in the Guangdong Province of China.

As part of the agreement, the Datang Huayin Electric Power Company, a subsidiary of China Datang, agreed it would fund the cost of the design, construction and initial operation of the facility, subject to the satisfaction of certain conditions and the negotiation of definitive documents.

The project will use coal or petroleum coke as its feedstock, and is to be developed on a parallel track with GreatPoint Energy's development of a similarly sized natural gas production facility in the US. GreatPoint Energy estimates the facility will be capable of processing 1,500 tons per day of feedstock.

Andrew Perlman, CEO of GreatPoint Energy, said: "This is a great opportunity for both our companies, the people of China and the environment. Datang Huayin and GreatPoint Energy plan to construct the cleanest, most efficient natural gas production facility in all of China."