ect updates - understanding ect progress

All ECT/ESI posters should read the following 2 recent announcements.

Note especially:

1. ECT is applying for and is being granted patent status in Australia, EU, USA and Canada

2. With EU patent now granted, commercial deployment into key EU countries can take place with increased confidence, following commercial demonstration here in Australia. So first we will see deployment of Coldry technology in Australia, and then in Europe, (and then?) USA and Canada

3. Our progress with the Design for Tender program, the Commercial Demonstration Plant program, and the newly announced Federal & State Government Advanced Lignite Demonstration Program dovetails nicely with EU market conditions.

4. Further announcements in relation to capital raising activities will be made in due course.

5. Friday, 9 November 2012: Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to advise receipt of the expected cash rebate for its Research and Development expenditures through the Australian Taxation Office.

6. Funds totalling $1.293 million were received as per the 30% rebate on eligible expenditure for the 2011-12 tax year. This is substantially greater than rebates in prior years, driven by ECT’s substantial increase in activities in the area of technology development, primarily due to our Design for Tender (DFT) work plans, aimed at developing a detailed design for the Coldry technology at commercial scale;

7. R&D work undertaken during the current 2012/13 year, including completion of Phases 2 and 3 of the DFT, is expected to be of similar value to the work undertaken last financial year.

Clearly, ECT is a work in progress and we may not see the immediate benefits for 2-3 years, when overseas deployment takes place.

ECT place a lot of importance on R&D aimed at developing a detailed design for the Coldry technology at commercial scale. Success with the tender for the Advanced Lignite Demonstration Program and access to all or some of the $90 million on offer for the LV is crucial


Item 1: Shareholder Update: Patent Status and Capital Raising
Monday, 8 October 2012: Environmental Clean Technologies Limited (ASX:ESI) (ECT or Company) is please to provide the following update to shareholders on recent patent and capital raising activity.

European Patent Granted

Following on from the successful granting of Patent coverage for our Coldry technology in the United States and Australia, we are in receipt today of notification that our European Patent application has now been issued as a formal patent, no. 1680637.

his is the culmination of over two years of consistent effort in addressing and satisfying various aspects raised by the EU examiners. ECT greatly appreciates the able assistance of their Patent attorneys, Davies Collison Cave.

With the patent now granted, commercial deployment into key EU countries can take place with increased confidence, following commercial demonstration here in Australia.

Chief Operating Officer Ashley Moore commented, “Europe is the world’s highest lignite utilising region, with the top five lignite using countries in the EU accounting for an annual consumption of 395 million tonnes according to the European Association for Coal & Lignite. This highlights the magnitude of the EU market when compared with Australia’s 65-70 million tonnes a year usage.

Our progress with the Design for Tender program, the Commercial Demonstration Plant program, and the newly announced Federal & State Government Advanced Lignite Demonstration Program dovetails nicely with EU market conditions.

Extension of FAST Finance Facility
As advised on 19 July 2012, Environmental Clean Technologies accepted a “FAST Finance” loan through Greenard Willing, against the anticipated $1 million from the R&D tax concession due in October – November 2012.
As a result of the extensive work completed on the Design for Tender, the R&D tax concession has been lodged with a value of $1.3 million. Accordingly, Directors have exercised an option to “top up” the “FAST Finance” by receiving an additional $300,000, on matching terms to the original facility.
The terms of the addition funds are as follows
Term 6 months
Repayment Cash in full from the R&D tax rebate refund
Interest Rate 15% p.a. payable upfront
Distribution Fee 5%

Further announcements in relation to capital raising activities will be made in due course.


Item 2: R&D Tax Rebate Received
Friday, 9 November 2012: Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to advise receipt of the expected cash rebate for its Research and Development expenditures through the Australian Taxation Office.

Funds totalling $1.293 million were received as per the 30% rebate on eligible expenditure for the 2011-12 tax year. This is substantially greater than rebates in prior years, driven by two factors:
? ECT’s substantial increase in activities in the area of technology development, primarily due to our Design for Tender (DFT) work plans, aimed at developing a detailed design for the Coldry technology at commercial scale; and
? Changes in the Federal Government’s rules associated with R&D expense, which removed the cap on eligible expenditure.

This rebate is consistent with our considered view on the R&D eligibility of the detailed design works.

ECT’s DFT work program continues, and dovetails with our submission for the combined State & Federal Government funding support initiative, the Advanced Lignite Demonstration Program (ALDP).

R&D work undertaken during the current 2012/13 year, including completion of Phases 2 and 3 of the DFT, is expected to be of similar value to the work undertaken last financial year.