The Project involves the development of a plant in Indonesia for the production of diesel and gasoline from coal with a capacity of 6000 tons of diesel fuel a month. The Developer’s coal-to-diesel technology can be used to process coal of any quality, including high ash content(50%) and humidity(40%), with the result that one ton of coal will provide 490 kg of diesel fuel. The fuel produced by this technology is “green” – with low sulfur content, and meets Euro 5 emissions standards. The Project has the support of government agencies. The Project will require about 36 months to complete.
The Developer has experience with new materials and technologies for mining and processing of natural energy resources, as well as materials and technologies for alternative energy since 1994. For example, the Developer has received a patent for ceramic proppants that are used in the technology of hydraulic fracturing of oil and gas reservoirs. It has also developed alternative energy technologies, most recently for production of polysilicon, a source material for the manufacture of solar cells.
Once complete, the plant will process about 13,000 tons of coal per month. Production will be environmentally safe and meet environmental requirements of Europe, United States, Singapore and Indonesia. The proposed Project is expected to be highly profitable with a cost of production of one ton of diesel fuel from coal at USD 100, which, with means a wholesale cost of one ton of diesel fuel of USD $850.
The Developer is seeking USD 12m financing for turnkey delivery of a plant that utilizes its technology including equipment manufacturing, delivery of equipment, installation of production lines, and training of local staff. The Developer is interested to obtain 36 months debt financing at 6% pa, and to provide the investor with a 50% stake in the company that will own the plant.