Colombia Clean Power & Fuels, Inc. Announces Completion of Feasibility Study for Initial Coking Facility
SAN FRANCISCO, June 23, 2011 /PRNewswire-FirstCall/ — Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF, “CCPF” or the “Company”) announced today that it has received the results of a feasibility study prepared by Hong Kong Dongshi Coal Chemistry Engineering Consultancy & Management Co., Ltd. (“Dongshi”) for the Company’s planned 200,000 tons-per-annum coking production facility. This facility is part of the Company’s strategy to provide market-ready high grade coke to the burgeoning global steel industry, in addition to mining and sale of metallurgical coal during its first phase of development and commercialization. Worldwide consumption of metallurgical coke, an essential component in steel manufacturing, increased to an estimated 595 million metric tons in 2010 (representing an estimated global market of US$270 billion at current market prices) and is expected to reach 732 million metric tons in 2013, with Asia dominating consumption.
CCPF intends to build a modern, safe, and efficient coke production plant using patented Clean-Type Vertical Heat Recovery Coke Oven (“CVHRCO”) technology manufactured in China. The Company’s facility would be the first of its kind in Colombia.
In Colombia, the vast majority of metallurgical coke production has traditionally utilized so-called “beehive ovens,” which often produce inconsistent quality metallurgical coke with limited acceptance by major steel mills in key international markets and that can release greenhouse gases. The goal of the CCPF coking production facility is to produce high-quality metallurgical coke for sale primarily to the global steel industry.
This 200,000 ton-per-annum coke plant is expected to be built by applying the CVHRCO technology first developed and patented in China in 2003. To date, twelve coking plants have been constructed throughout China utilizing this proven CVHRCO technology. In recent years several improvements have been made to the technology and a second-generation plant is under construction in India.
“We believe the 200,000 ton facility we are envisioning will be transformative for the Colombian coal and coking industries. The technology we have identified has important features such as a low coke burning loss rate, shortened coking time, higher coke quality and uniformity, smaller carbon footprint, lower operating and capital costs, and more reliable equipment with estimated production life of over 25 years,” said Graham Chapman, CCPF’s Chief Operating Officer. “Importantly, for the environment, the most outstanding characteristic of the CVHRCO technology is that substantially all of the chemical byproducts, toxic gases and liquids are converted into high-temperature thermal energy during the secondary combustion in the burning chamber. We estimate this utilization of the waste heat produced from the coking process for power generation, along with other factors, will contribute to accelerated pay-back time frames and attractive returns on investment.”
Dongshi analyzed the proposed equipment and technology, the characteristics of Colombian coal identified as feedstock, and proposed initial sites that are under review and analysis by CCPF. The results of the study indicate that the facility is both technically and economically feasible. Dongshi also concluded that the proposed facility conforms to the Colombian government development policies and plans and will likely enhance the coal chemical industrial development in Colombia. The establishment of the project will also likely play an important role in local and regional economic development in the municipality selected by the Company for the location of the facility. Construction and operation of the facility is expected to create over 100 jobs for the local community, including skilled positions that can contribute to human capital development in Colombia.
CCPF estimates that the total amount of coal required for the Heat-Recovery Coke Plant will be approximately 280,000 tons per year, which it expects to produce internally from one or more of its planned mining operations. In some cases, CCPF plans to purchase coking coal from other local producers for the purposes of blending and to ensure a consistent supply during full commercial production. The Company is planning to export the metallurgical coke it produces to markets such as Brazil, North America, Europe, Russia, India and China.
About Colombia Clean Power & Fuels, Inc.
Colombia Clean Power & Fuels, Inc. (OTCBB: CCPF.OB) is developing coal mining, coal coking and clean coal technology operations in the Republic of Colombia. The Company plans to build mines to produce both metallurgical coal and thermal coal and implement advanced coal technologies, such as coal gasification and coal-to-liquids, to produce metallurgical coke, urea, liquid fuels, power and other clean energy solutions. Colombia is the world’s tenth largest producer and fourth largest exporter of coal, with an estimated 7 billion metric tons (“MT”) of recoverable reserves and 17 billion MT of potential reserves.
The Company’s current operations are focused on coal exploration and development activities. The Company has retained leading engineering and geological services firms in the U.S. and Colombia to conduct exploration work in selected concessions acquired to date and others under consideration for acquisition by the Company. The Company’s team of executives, advisors and partners is comprised of experienced entrepreneurs and business professionals in the U.S., Colombia and China that have a breadth of experience in coal mining and clean coal technologies as well as substantial industry relationships.
For more information, visit www.ColombiaCleanPower.com
This release contains forward-looking statements regarding Colombia Clean Power & Fuels future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, fluctuations in coal and energy prices, and other risk factors described from time to time in the Company’s reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company’s control. Colombia Clean Power & Fuels undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact: Daniel Carlson
Telephone +1 (415) 460-1165
SOURCE Colombia Clean Power & Fuels, Inc.