Evergreen Energy has signed an agreement to proceed with specifications and design work for the construction of a K-Fuel lignite coal refinery in the Inner Mongolian Autonomous Region in China.
The contract was signed with Baiyinhua Coal and Power Company (BCP), a subsidiary of China Power Investment (CPI). CPI is one of five state-owned power generation companies in China.
‘Coal feedstock tests have been conducted and CPI has evaluated the significant potential of the K-Fuel process to upgrade low-rank coal, enhance plant efficiency and reduce harmful pollutants,’ said Zhang Xiaolu, vice president of international business at CPI.
According to CPI, K-Fuel technology reduces mercury content, sulphur dioxide and nitrogen oxide emissions when lignite (brown) coal is used.
Under the agreement, there will be a feasibility study followed by a technical services contract funded by CPI to develop environmental, water and land use specifications for the plant.
The third phase will develop detailed specifications under a technical license contract to meet BCP’s process and performance requirements.
Upon completion of the three phases, an engineering, procurement and construction contract would be awarded for construction of the new coal refinery.