MicroCoal to build first commercial plant in Asia
Tuesday, December 18 2012 - 10:14 AM WIB
Carbon Friendly Solutions Inc. (CFS) said that its wholly-owned subsidiary, MicroCoal International Inc. (MCI) has signed a binding letter of intent (LOI) with Carbon 2 Power Ventures Inc., of Vancouver, and PT Wijaya Tri Utama of Indonesia (Wijaya) to build a small scale commercial MCI plant (SSCP) at the 15 megawatt (MW) Banjarmasin power plant owned and operated by Wijaya.
Based on the LOI, MCI and Wijaya will provide project financing for the SSCP, the company said in a press statement on Tuesday.
The companies will also work together to improve the cost economics of the input coal that has been targeted by the parties, and to reduce the operating costs by way of an investment with a payback of three years.
Wijaya will engage MCI as the sole provider of upgrades and maintenance for all technology installed at the power plant, and the installation will be in two phases. They have agreed that it shall take between six to twelve months to be completed.
"The installation of this commercial MCI plant in Indonesia is a significant step that will facilitate CFS to market MicroCoal technology in Indonesia, and other key Asian countries,? said Slawek Smulewicz, CEO and Director of the company.
?I attended the World Clean Coal Week, in Indonesia, and learned that in next 10 years, it is anticipated, that approximately 65% of the power plants capacity addition is expected from coal and majority of the Indonesian coal reserves are low rank (high moisture) coal, which is suitable for our technology," he added.
Editing by Benget Besalicto Tnb.