cgv enters coal gassification jv

AUSTRALIA'S CLEAN GLOBAL ENERGY ENTERS COAL GASSIFICATION JV
Mon. November 02, 2009; Posted: 02:04 AM

MELBOURNE, Nov 02, 2009 (AsiaPulse via COMTEX)
Australian alternative energy company Clean Global Energy Ltd (CGE) (ASX:CGV) has signed an agreement for a A$445 million (US$402.19 million) joint venture in Mongolia for an underground coal gasification project.
CGE hailed news of the agreement as a "great outcome" and shares in the company finished up three cents at to 22.5 cents.

Under the plans CGE will provide US$350,000 to join with three other companies to try and raise US$400 million for the project.

They hope to raise US$120 million via a capital raising on the Hong Kong Stock Exchange and secure a further US$280 million in debt.

CGE would hold a 35 per cent controlling interest in the project, which would attempt to convert some of Mongolia's vast coal reserves into Syngas.

Gasification of coal occurs at high pressures and can be used to create products including electric power, chemical feedstock, liquid fuels and hydrogen gas, the company said in a statement on Monday.

"Gasification provides numerous opportunities to reduce pollution as compared to more familiar industrial use of coal, especially with respect to emissions of sulphur, nitrous oxides and mercury," CGE said.

CGE chief John Harkins said the deal was a milestone for the company.

"China is actively seeking clean energy alternatives, and now was the right time for CGE to become involved in this space," Mr Harkins said.

(AAP)maz