"Environmental Clean Technologies Limited has developed the worlds first economic method to dewater brown coal and transform this abundant, but widely unusable, resource into a Black Coal Equivalent (BCE)."
In view of that statement, I posted the below last Sunday:
"Something to ponder - WEC are a proven drying tech in Indo. How come ECT say Coldry is the first?"
No one bit until you did...fair enough.
The only conclusion I can come to is the word "dewater" - (recover water) distinguishes the 2 techs. I cant see anywhere where WEC state they can recover the water? Can they? Its either that - or ECT dont consider WEC's process to be economic? Doubt that.
If the statement "worlds first" bothers you - ring Kos. I agree its an interesting statement to make - but ECT have not made that statement lightly. They only released the new website last week that makes the statement.
I posted some WEC/Coldry comparisons last year. Some "experts" were keen to shoot down the Coldry tech - they failed to convince. The conclusions we came to were - WEC uses a "mechanical process...a process of dehydration and compaction" ie heat n squeeze (as the WEC website explains). Coldry uses " natural processes" and waste heat (40 degrees). WEC's opex costs are significantly higher than Coldrys. WEC's energy costs are significantly higher than Coldrys. All the quoted info is from reputable WEC sites/links. If you do a search you will find the posts. I remember thinking I would receive a barrage of "complaints" from the "experts" over my research (as an amateur) - there was silence...because the comparison facts of WEC V Coldry were and are irrefutable
I noticed your a WEC holder and saw your comment on the WEC thread (actually I saw it yonks ago when you posted it - but thought I would avoid controversy on the WEC thread - but since you brought your qualms to the ESI thread...let the debate begin!:
"ESI has had a lot of hype here. WEC is a better prospect as the plant is located at the minesite so the resulting product can be transported, unlike the raw material. ESI requires the brown coal to be adjacent to a generator to provide the drying input. This works in the Latrobe but where else? WEC's business model provides a much larger share of the enhanced value of the coal."
Just a couple of points:
"WEC is a better prospect as the plant is located at the minesite so the resulting product can be transported"
Why does that make WEC a better prospect? Lignite p/stations are always located at the mine site. Coldry is no different to WEC in this respect. Coldry plants will be exclusively located at brown coal mine sites.
"ESI requires the brown coal to be adjacent to a generator to provide the drying input."
Yes - thats preferrable. However, on WEC's home turf in Kalimantan, ESI/AMI are planning on building a small p/station - partly for Coldrys needs and partly for power supply for the surrounding communities. Why dont AMI just go with the already established WEC local model? That would be the safest route. Why are AMI prepared to build a new p/station primarily for Coldry?
Because its the most economic method of dewatering lignites in their minds. From memory - eg WEC can end up with a 14% moisture product...Coldry 12%. The Indo project shows how versatile/economic Coldry is.
"This works in the Latrobe but where else?"
The vast, vast majority of brown coal mines are adjacent to a p/station for obvious reasons. Thats one of the advantages of Coldry over WEC etc. Why not utilize the waste heat instead of going to the expense of generating your own, as WEC do?
Poland (worlds largest lignite p/station), Tincom (another govt backed monster), LYP (largest lignite p/station in Oz), Indo (may as well be govt backed) have ALL backed Coldry rather than WEC...WHY? Why have they taken these agreements with a flea bitten penny stock with a very, very dark history. Wouldnt it be safer for them to go with a financially solid group like WEC?
The answer is all those entities are satisfied ESI is financially able to perform - and most importantly, they all see Coldry as the better tech.
Then there is Chindia etc...
"WEC's business model provides a much larger share of the enhanced value of the coal"
WEC take large equity positions in their projects. Large raisings are needed and obviously they cant handle too many projects at once. ESI's model is like a franchise. Royalties are the aim and being nimble is the game.
Dominos Pizza are mean, lean and full of steam - they over ran the clumsy local Tony's Pizza store who had heavily invested in a couple of shops, thought they were ahead of the game time wise - but crucially failed to realise the Dominos business model would run him out of town eventually.
Interestingly, WEC is Pink Sheet listed. Thats where ESI need to head pronto.
So where is the most upside likely? ESI (mcap f/diluted $29 mill) or WEC (mcap $450 mill)?
btw...Invertedva - excellent post...I reckon you are more on the ball than any of us.
http://data.cnbc.com/quotes/WECFF
ESI Price at posting:
2.3¢ Sentiment: LT Buy Disclosure: Held
(20min delay)