The cynic would suggest,politics,big money will bend/change the rules,? _____________________________________________________ Pago...you make some interesting points...lets look at facts first...
Tom Arup:
"The most prominent is state-owned Shanghai Electric Power through its local subsidiary, Shanghai Electric Australia Power & Energy Development. Shanghai Electric is listed on the Shanghai Stock Exchange and has a company value of $1.5 billion.
It is understood the firm is proposing a demonstration plant in the valley to process 3 million tonnes of brown coal a year using technology it claims improves its quality and also makes briquettes...
LV Express:
"Three companies were identified yesterday in The Age as among the preferred short-listed companies: Shanghai Electric Group, Coal Energy Australia and Ignite Energy Resources.
While The Express' source would not suggest which companies were likely to receive the funding, he said selections were not yet locked in, adding last minute discussions were still taking place with Exergen and Environmental Clean Technologies."
Notice the LVE merely stated what Tom said about the 3 techs - it wasn't backing up what Tom said re the three techs. The LVE's "well-placed source" said there were "up to four of which are believed to have become unofficial favourites". Interestingly - he named only Exergen and ECT as being in the mix.
Shanghai Electric Group, Coal Energy Australia - how do they stack up wrt the ALDP criteria...?
http://en.kytl.com/news/news.aspx?ID=31
""Shanghai Electric Power Co., Ltd. 150,000 t/y Lignite Upgrading & Briquetting Project"
"the briquetting area and the wastewater treatment area. Thanks to our international advanced lignite upgrading technology of multi-bed superheated steam fluidized bed with in-bed heat exchanger and high-pressure roll press technology without bond, this project can ensure a reliable production of high quality lignite briquettes."
"The most prominent is state-owned Shanghai Electric Power through its local subsidiary, Shanghai Electric Australia Power & Energy Development. Shanghai Electric is listed on the Shanghai Stock Exchange and has a company value of $1.5 billion."."
Does the above sound/look like it even remotely qualifies for ALDP...? No
Isn't ALDP primarily for - "pre-commercial"...and "new" techs?
Key words..."through its local subsidiary, Shanghai Electric Australia".
Is the idea here to justify ALDP tax paying money via a "subsidiary" of a multi-national coy that will be utilising an old tech "tweaked" for political purposes...?
Hence - presto...a "new" tech that is "pre-commercial"..?
"The three existing plants, which are all located in the county of Fugu in the Shaanxi province, have...
How is the process powered?
If the volatile content of the coal is sufficiently high, the Coal Plus process is generally self-sustaining, with a proportion of the gas produced by coal pyrolysis used to heat the furnace.
What waste products are generated?
The process generates waste water, which is treated and discharged or used on site. The only CO2 emissions from the process are from the burning of gas to heat the furnace." ____________________________________________________
Ok - we have established the two Tom Arup "front runners" for ALDP don't actually even meet the ALDP criteria....bar some tweaks...
So what the heck is going on here in Toms world...?
The ALDP is about "pre-commercial" and "new" techs"...
Shanghai Electric, Coal Energy Australia are factually commercial and are proposing old techs no matter how they "tweak it".
These coys would be great to underpin the "Pilbara"...but to use them - give them $ for the ALDP is just wrong.
Fact is thermal coal prices have been hammered. Investors are scared here. My guess is the Govt ppl called the Pilbara a year ago and are now wondering the way forward.
In any case - lets not get ahead of ourselves/media...as an example - the media stated "Coal Energy Australia" as a preferred candidate.
ASX JAT's" m/cap is only $2m and its sp has gone no where despite the media rumours re "Coal Plus - Coal Energy Australia"... surely JAT's sp should have sparked up in recent weeks if there is any truth to the rumours...?
Hopefully Govts:
* Realise recent thermal coal prices have dampened investor appetite for the short term - lets think longer than 3 years. Isn't that what Govts are supposed to do...?
* Realise Shanghai Electric, Coal Energy Australia types...etc - are great for developing the Vic Pilbara. These guys are needed to seriously to develop rail/port...?...but...WHY are they potentially part of the ALDP - they should be "fostering" the ALDP babies - not smothering them...?
* Realise it would be embarrassing for Oz Govts to back old commercial Chinese techs in Vic...and meanwhile home grown Coldry/Matmor are pushed off shore to be commercialised in India... How short sighted that would be!
* Realise ESI s/holders have abided/invested by... and suffered through the last year whilst the ALDP scenario was ASX ann amid secrecy.
* Realise that even if a remote subsidiary of Shanghai Electrical or Coal Energy Australia get any ALDP $... there will have to be serious questions asked. Fact is neither Shanghai Electrical or Coal Energy Australia qualify under the ALDP program.
Its a matter of principal as well - as holders of ESI/Coldry we don't mind being beaten on a fair platform....ie competing with similar pre-commercial/new innovative techs"...but heck - if the ALDP winners are what Tom thinks...well - its not a pretty picture.
Anyway - Coldry is still in the race...
Arup..."construction ready"....August is here.
tick tock...
ESI Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
(20min delay)