Clean Coal Technologies (CCTC) on the Move!

[AlbertDumb]

In October, Leidos is expected to finish construction of a 2 metric ton/hour coal-treating plant that will prove Clean Coal Technologies’ (CCTC) Pristine-M process can efficiently and economically remove moisture and volatiles from low-grade coal. If successful, Pristine-M could transform the alternative energy landscape and coal industry, simultaneously. In our view, CCTC is nearing commercialization of one of the most exciting, and potentially important, technological advances seen in years. This advance could be worth billions, and conservatively, create tremendous upside for this emerging Company.

‘Fixing’ One of the Most Important Commodities in Global Energy Security
Coal is the most abundant fossil fuel on the planet, used to generate over 40% of the world’s electricity and in production of 70% of steel. In the world’s two most populous countries, where coal is used in 81% and 71% of electricity production, respectively, coal is even more important to the energy grid and in meeting growing demand for electricity (as shown, below).

[AlexSomov]

Consumption of coal increased 70% from 2000 – 2013, according to the International Energy Agency (IEA), which predicts China will continue to grow its coal consumption, but is expected to be overtaken in demand by India in 10 years.

The problem is that 47% of proven reserves are ‘low-grade’ coal which burns inefficiently and emits large[r] amounts of carbon than high-grade or ‘ranking’ coal. As shown in the graph, below, ‘grade’ and ‘moisture content’ [in coal] are inversely-related.

[AlfredKa]

The world is increasingly taking measures to reduce carbon emissions. Burning of low-grade coal is one of the biggest contributors to this environmental issue. Consequently, a technology that could ‘upgrade’ low-grade coal inexpensively would be transformational on a global scale and offset events like China’s ban on import of low-grade coal.

CCTC predicts that energy production will increase 67% when ‘upgrading’ coal using Pristine-M, at a cost of $7.50 per ton. The IEA states that for every one percentage point gain in efficiency, there is a 2 to 3 per cent reduction in the amount of greenhouse gasses produced. This would imply that Pristine-M could materially cut emissions by upgrading existing coal-burning plants. In Australia, for example, 21 of 25 coal-burning power plants waste 65%+ of the coal that they burn, according to their government. Retrofitting these dated plants with Pristine-M would be an economically sensible and cost-effective solution for (i) reducing greenhouse gas emissions, and (ii) lowering cost of kWh by improving efficiency of coal input.

Importantly, Pristine-M is economically additive, not only improving outcomes for energy producers, eg. coal-burning power plants, but also for coal miners and, ultimately, for end consumers of electricity, who benefit from lower energy prices. One of the largest cost components of coal extraction is transportation. If CCTC’s technology removes moisture, and consequently shrinks the size and weight of the coal, the cost of transporting the fossil fuel plummets. This would [once again] make coal farcheaper than oil and natural gas-burning power plants, specifically, for example, in the United States (where price of natural gas is competitive with coal).