Clean Global Energy Limited (ASX:CGV) Enters Into Non Binding Memorandum Of Understanding for Syngas Supply To The AES Corporation (NYSE:AES) Shady Point
Whilst the key terms of the MOU are confidential, CGEI will supply AES Shady Point's coal-fired power stations with UCG Syngas from a nearby mine site that CGE has entered into an MOU to acquire from Farrell Cooper Mining (see previous announcement).
The MOU proposes that CGEI initially produce Syngas for 25MWe of electrical power production with an option to further expand and supply up to 300MWe in a new dedicated UCG syngas combined cycle gas turbine at the Shady Point Power Station.
The parties are working together towards formalizing a binding agreement within the next 120 days, during which time regulatory amendments and approval to use the mine site for UCG production will be sought, along with easement access for a 15 mile pipeline and funding commitments.
CGE, subject to any required shareholder approvals, proposes to fund the majority of the project through CGEI.
CGE is focused on the commercial development and of UCG in a number of major overseas markets and is determined to lead the way to commercialising this environmentally friendly and commercially attractive process for coal exploitation in Australia and internationally.
John Harkins, CGE's Chairman and CEO stated "that these latest MOUs further signify that CGE is increasingly being recognised globally as a leader in the provision of UCG technology and the production of UCG Syngas."
Clean Global Energy Limited
Advanced Energy Systems Limited