Clean Coal Technologies, Inc. is to supply Sino-Mongolia International Railroad Systems with technology valued at USD250 million to enhance low-grade coal for a coal liquefaction facility in Inner Mongolia.

Under the terms of the cooperative joint venture, CCTI will build an initial plant with an annual capacity of 1.5 million metric tons to supply clean coal for a newly constructed power station in the same industrial park. Thereafter production will be increased to a capacity of 80 million metric tons annually, the majority of which will be used as feed stock for coal-to-liquid production. Ground breaking on the 550 acre site is scheduled to take place during the first quarter of 2009, with initial clean coal production estimated to commence within 18 months thereafter.

Upon completion, this undertaking will represent one of the world's largest clean coal and liquefaction projects, and provide the foundation for the development of a 1.0 billion metric ton facility. The total capital investment for the clean coal and liquefaction plants is expected to reach USD8 billion over a 10-year period, much of the technology and services being sourced from the U.S. The agreement, which provides for the first CCTI coal plant in Inner Mongolia, is expected to lead to additional sales of this clean coal technology as China strives to meet its energy needs, and improve environmental conditions.

Up until now the options available to remove impurities from coal have been cumbersome and costly — a situation that has significantly undercut the rate of progress. But new technology is available that offers great promise in mitigating the health hazards of coal use. Specifically, a key feature of this CJV will be the patented technology CCTI developed that dramatically reduces the contaminants and pollutants that are produced by burning coal.