RESEARCH: Promising Cleantech Play, page-2

"Nine reasons to look at Environmental Clean Technologies

1. Coldry is arguably the best brown coal conversion technology available. While there are various technologies for drying high-moisture coal in order to upgrade it, Coldry is the world’s first low-temperature, lowpressure drying method capable of producing a black coal-equivalent product via a low-cost process that has zero carbon emissions.

2. Matmor can produce iron from lignite. As the world’s first and only technology to allow iron to be made using low-grade coal at relatively low temperatures, the commercial potential of this technology is strong in periods of high iron ore pricing.

3. ECT and its collaborators have done considerable work on the design of commercial-scale Coldry plants. As well as successfully operating a Coldry pilot plant at Bacchus Marsh in Melbourne since 2004, ECT itself has completed detailed feasibility and scoping for a proposed commercial plant in Australia while ECT’s Indian collaborators published a feasibility study in August 2016. All this work potentially speeds the process by which such plants could ultimately obtain project financing and be built in the future.

4. ECT is now adapting its Coldry pilot plant for uses beyond simple solid fuel. This approach has potential to lead to economic returns in the near term for relatively low capital inputs.

5. There is potential for new collaborators in the Indian iron and steel industry to look at Coldry and Matmor. India is not only a major producer of lignite, iron and steel but has a number of private sector operators with higher risk appetite than the semi-state companies that could potentially realise value from Coldry and Matmor.

6. ECT’s CDP-WTE technology may provide a rapid commercialisation pathway, with relatively little capital required to go from pilot plant to commercial-scale plant with this waste-to-energy technology.

7. ECT with COHgen may have a valuable hydrogen source. Given the rise in recent years of hydrogen as a fuel, we see potential for this technology to find a valuable commercialisation partner in the near term.

8. ECT has a quality leadership team. We believe that ECT under Chairman Glenn Fozard has all the skills necessary to realise value from its various technologies.

9. The current rights issue potentially funds for the company to cash flow break even. ECT announced a rights issue in October 2019 to raise between A$2.75m and A$7.45m. 1.55 new shares at 0.1 cent per share will be offered for everyone 1 share held. For every three shares taken up ECT will issue a three-year option exercisable at 0.3 cents. This raising can potentially funds for the company potentially to cash flow break even should the September 2019 strategy be successfully executed."

Extract from research paper