clean coal space: cgv vs ucg companies

Linc Energy at a glance - LNC
�� Linc Energy is developing a significant energy business
– Based on producing clean, synthetic transport fuels
– Combining Underground Coal Gasification (UCG) and conventional Fischer-
Tropsch technology (GTL)
�� Linc Energy has a long background in Underground Coal Gasification
– Chinchilla UCG demonstration project operating since 1999
– GTL demonstration facility commissioned in 2008
�� A$50m demonstration UCG/GTL facility commissioned at Chinchilla
�� Resource position is a key
– Large undeveloped coal resources in Queensland & South Australia
– Newly acquired acreage in Powder River Basin (USA)
�� Over the past three years, we have built an impressive leadership and
technical team from around the globe
LNC Market cap = $735M
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Carbon Energy - CNX
Summary –Strategy on track
QueenslandExpanded Resource achieved (JORC compliant)
5MW Power Plant underway
20MW Power Plant –Planning and Partnering in advanced stages
Land purchased ( Blue Gum) for future expansion and Mining Lease approvals underway
Heads of Agreement signed in July with Liberty Resources for potential JV project in the Galilee Basin (Qld)
Other StatesDrilling program progressing –Sargon Group tenements (WA)
Targeting other potential Australian coal resources
InternationalMarket opportunities are significant and discussions are advanced with key focus on North and South America
CNX Market Cap = $383M
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Cougar’s Energy - CXY
Cougar’s Energy has a consistent development strategy
•
utilise the world’s best commercial UCG technology under licence agreement
•
build Australia’s first UCG project of commercial scale forelectricity generation
•
replicate this flagship development in future projects, including in Victoria
•
investigate the economics of other UCG applicationsincluding conversion into methane gas
•
design all projects to enable carbon capture
CXY Market Cap = $82M
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CGV Market cap = $17M
CGV Vs its peers is valued 4 times less Vs the lowest valued competitor.

ASX ANNOUNCEMENT
Joint Venture Agreement for a major Underground Coal
Gasification project in Inner Mongolia, China

• Clean Global Energy Limited enters into Joint Venture Agreement to
undertake a proposed US$400m Uuderground Coal Gasification project in
Inner Mongolia, China;
• The project is to be undertaken on a staged basis on Inner Mongolia Gu Xin
Mining Co. Ltd, Beijing’s 1.8B tonne coal deposit in Inner Mongolia China;
• Hong Kong Based Joint Venture Company to be established for the project
and to undertake the capital raising activities for the project on the Hong
Kong Stock Exchange;
• Joint Venture Company to enter into a documented off-take agreement with
Inner Mongolia Sukli Oil and Gas Development Co. Ltd for the supply of
between 5-12million cubic meters of Syngas per day;
• Joint Venture Company to exclusively engage and appoint Clean Global
Energy Limited to design, operate and manage the Underground Coal
Gasification plant under a separate commercial operating agreement.


Clean Global Energy Limited (“CGE”) is pleased to announce that it has secured a Joint
Venture Agreement with Bejing Yusenjiayu Environmental Protection Technology Co.
Ltd of Beijing, China (“YSJY”), Inner Mongolia Gu Xin Mining Co. Ltd of Beijing, China
(“GX”) and Goldbridge Clean Tech Energy of East Sussex, Unitied Kingdom (“GB”) to
undertake a commercial UCG project on GX’s Inner Monglia coal deposit.
The Joint Venture Agreement follows on from a successful review of GX’s coal data and
subsequent detailed discussions and negotiations over the last week following the
previous anouncement of a Memorandum of Understanding between the parties on 17
August 2009. Whilst the full terms and conditions of the Joint Venture Agreement are
“commercial in confidence” the key parts are as follows:-
ABN 90 118 710 508
Level 33 Australia Square
264 George Street
SYDNEY NSW 2000
t: (02) 9258 1290
f : (02) 9258 1111
www.cgenergy.com.au
[email protected]
• A Joint Venture Company (“JVC”) will be formed in Hong Kong to undertake a
proposed $US400m UCG project on GX’s 1.8B tonne coal deposit in Inner
Mongolia;
• The JVC and project is to be funded by a proposed capital raising on the Hong
Kong Stock Exchange of not less than US$120m and debt funding of not more
than US$280m;
• Initial funding of the JVC prior to the listing, of US$1m will be contributed by the
joint venture partners in proportion to each parties shareholding. CGE’s
estimated portion of this will be US$350,000 which will be funded from existing
cash;
• The JVC is to enter into a documented off-take agreement arranged by YSYJ
with Inner Mongolia Sukli Oil and Gas Development Co. Ltd for the supply of
between 5Mm3 to 12Mm3 per day of UCG Syngas on commercial terms at the
best possible market price (current price 1 CNY / m3);
• The JVC will enter into a commercial agreement with CGE to design, operate and
manage the UCG plant with fees payable by the JVC to CGE once funding for
the project has been secured;
• All intellectual property rights relating to UCG, including the design of the UCG
plant, UCG technology, knowhow, and processes shall be retained and owned
solely by CGE;
• CGE to hold a 35% controlling interest in the JVC and 2 board seats with the
other parties holding 1 board seat each.
Following the signing of the Joint Venture Agreement in Beijing, Mr John Harkins,
CGE’s Chairman and CEO, stated that:-
“This is a great outcome for CGE and its shareholders. Not only is the Joint Venture
Agreement the achievement of another key milestone for CGE, it is a significant
example of the recognition of CGE’s UCG capabilities by the international business
community. China is actively seeking clean energy alternatives and now was the right
time for CGE to become involved in this space. We are very pleased to be working
together with our joint venture partners to provide a cleaner coal solution for China and
the global community and look forward to a successful future.”
ABN 90 118 710 508
Level 33 Australia Square
264 George Street
SYDNEY NSW 2000
t: (02) 9258 1290
f : (02) 9258 1111
www.cgenergy.com.au
[email protected]
About CGE
CGE is positioning itself to become a major global alternate energy company through
utilizing Underground Coal Gasification (“UCG”) to release untapped energy from coal
that is typically uneconomical to mine through conventional processes.
UCG produces a low cost, high quality Syngas that can be used to produce power, ultra
clean diesel, other fuels and chemicals. The UCG process is considerably more
environmentally friendly than any other form of mining. UCG has been used in
commercial operations for over 50 years.
CGE has an experienced board and management team with a proven commercial and
technical track record in UCG and energy in both public and large private corporations.
CGE has an established engineering and project management team ready, which have
experience in UCG, coal bed methane, mining and energy.
CGE’s UCG technology uses an advance process known as Controlled Retractable
Injection Points (“CRIP”) that provides greater control and efficiency in the UCG
process. The CRIP UCG process was successfully trialled in a €17m European project
in Spain which was headed up by CGE’s Technical Director, Dr. Michael Green. Dr
Green has continued to advance the CRIP technology, which he is currently
implementing in commercial projects in the UK and Europe. Dr Green is a globally
recognised leading authority on UCG.
ABN 90 118 710 508
Level 33 Australia Square
264 George Street
SYDNEY NSW 2000
t: (02) 9258 1290
f : (02) 9258 1111
www.cgenergy.com.au
[email protected]
About Underground Coal Gasification (UCG)
UCG converts coal into a product commonly known as Syngas obviating the need to
mine the coal. The gasification processconverts hydrocarbons into Syngas at elevated
pressures and temperatures and can be used to create many products including electric
power, chemical feedstock, liquid fuels, and hydrogen gas.
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. Otherwise un-mineable deep or thin coals remain potentially
valuable energy sources for UCG.
The UCG process has significant advantages over other methods of extracting energy
from coal in that it allows coal to be processed underground, thus eliminating expensive
mining operations and minimizing ground disturbance, in order to produce a low cost
industrial gas. The gas can then be used in either power generation or in the further
production of liquid petroleum products.
About GoldBridge (GX)
GoldBridge is a UK registered
opportunities to apply UCG in China
considerable expertise in project development and implementation in these
will be working closely with
About GX
GX is an established and professional mining compan
coal mine in Inner Mongolia.
more than 1.2 billion tonnes of coal at depths and seam thicknesses suitable for UCG.
About Beijing Yusenjiayu Environmental Protection Technology Co Ltd.
YSJY Is a high-tech environment company registered in Beijing and its long
commitment is to control land degradation
and implementing environmental protection
closely together with CGE and GX in
government agencies in the provision of
China.
John Harkins
Chairman and CEO
Clean Global Energy Limited
For further information please contact us as follows:
Media: Mr John Harkins
Chairman and CEO
+61 2 9258 1291
“clean tech” energy company actively searching
and the African sub-continent
CGE in relation to its UCG activities in China.
company and has a large
The GX coal resource is in excess of 5 billion t
and environmental pollution
solutions such as UCG. YSYJ will work
their relationships with provincial and
environmental solutions for the UCG projects in
ASX: Mr Andrew Whitten
Company Secretary
+61 -2 -9264-2216
ABN 90 1 18 710 508
Level 33 Australia Square
264 George Street
SYDNEY NSW 2000
t: (02) 9258 1290
f : (02) 9258 1111
www.cgenergy.com.au
[email protected]
for
continent. GoldBridge have
areas and
large-scale resources
tonnes with
(YSJY)
long-term
by promoting
national