TMCnet News
US firm gets licensing deal for coal-to-liquid plant(Business World (Philippines) Via Thomson Dialog NewsEdge) Headwaters CTL, LLC, a subsidiary of US-based energy services firm Headwaters, Inc., will provide technology licenses, basic engineering design and technical services for the construction of a 60,000 barrels per day (bpd) coal liquefaction facility in the Bataan Petrochemical Industrial Zone. In its Web site, Headwaters said several agreements were signed with H&WB Corp. for the coal-based liquid fuels refinery that is expected to use low rank coals from the Philippines. H&WB is a global firm engaged in the development of alternative energy sources while Headwaters CTL, LLC is a Utah limited liability company. "Headwaters is excited to sign [this] coal liquefaction license agreement. Headwaters seeks to apply its experience to develop an efficient coal conversion facility fully utilizing the indigenous coal resources of the Philippines," Ken Frailey, president of Headwaters Energy Services, said. Headwaters is a diversified company providing products, technologies, and services in two industries: construction materials, including combustion products, and alternative energy. It is focused on reducing waste and increasing value of energy feedstocks primarily in the areas of low-value coal and oil. In an e-mail correspondence, H&WB President Antonio A. Ver said the hybrid coal-to-liquid fuel plant, which will be the first in the world, would be financed through debt financing or project finance strategies. He added, H&WB has invested $3.2 million in the pre-feasibility evaluation while Headwaters has infused $6.6 million. "Based on our project development plan, construction will start after completion of the engineering-procurement-construction package which will take more than 24 months to complete," he said. After design and construction, this integrated plant will produce ultra clean liquid petrochemical feedstocks and transportation fuels such as liquefied petroleum gas (LPG), gasoline, diesel and jet fuels. "Preliminary front-end engineering study, which includes pilot scale gasification and liquefaction tests of selected Philippine coals, is scheduled to start next month and will take approximately 18 months to complete," the statement read. Mr. Ver also said the coal-to-liquid project will produce naphtha which can be used as a feedstock by the Bataan polyethylene plant of Gatchalian-led Metro Alliance Holdings and Equities Corp. and Iranian partner NPC International Limited (NPCI). H&WB also plans to evaluate coal supply logistics, conduct a market study for products, and assess options for carbon dioxide sequestration. The hybrid plant will be self-sufficient for electric power and will produce 11,000 bpd of LPG, 27,200 bpd of gasoline and 22,900 bpd of diesel fuel from a projected coal feed of 11,700 short tons of coal per day. In a separate correspondence, Headwaters CTL, LLC Chief Technology Officer Theo Lee said the project plans to use coals from Philippines but is also evaluating options for importing coal from nearby countries. "This investment is a demonstration of Headwaters' confidence in its technology and its commitment to provide continuing support to the project. This is our first project in the Philippines and will also be our first investment in the Philippines," he added. In 2006, H&WB entered into an agreement with Filipino-owned MG Mining and Energy Corp. for the establishment of a $4.2-billion coal-to-liquid plant in the Philippines. The plant is expected to start operations by 2013. Copyright 2007 BusinessWorld (Philippines). Source: Financial Times Information Limited - Asia Intelligence Wire. |