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U.S. Clean-Coal Company Finds New Opportunity in China

The Department of Commerce’s International Trade Administration helps promote “green” energy.

by Curt Cultice

As the world increasingly looks for new ways to use energy in an environmentally friendly manner, U.S. companies are working to develop new technologies that can be used at home and abroad to give people a better quality of life. The Department of Commerce continues to help U.S. companies find new markets for clean energy.

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William Zarit (right), deputy assistant secretary of commerce for international operations, congratulates Doug Hague (left), president and chief executive officer of Clean Coal Technologies Inc. (CCTI). Looking on is Wu Li Ji Mu Ren, chair of the board of directors for Sino–Mongolian International Railroad Systems Co. Ltd. The $250 million agreement calls for CCTI to build a facility in Inner Mongolia to convert China’s vast reserves of coal into liquefied fuels through a clean burning process. (U.S. Department of Commerce photo)
William Zarit (right), deputy assistant secretary of commerce for international operations, congratulates Doug Hague (left), president and chief executive officer of Clean Coal Technologies Inc. (CCTI). Looking on is Wu Li Ji Mu Ren, chair of the board of directors for Sino–Mongolian International Railroad Systems Co. Ltd. The $250 million agreement calls for CCTI to build a facility in Inner Mongolia to convert China’s vast reserves of coal into liquefied fuels through a clean burning process. (U.S. Department of Commerce photo)

 

In early December 2008, William Zarit, deputy assistant secretary for international operations with the U.S. Foreign and Commercial Service (USFCS), presided over the signing of a $250 million agreement between Clean Coal Technologies Inc. (CCTI) of Coral Springs, Florida, and Sino–Mongolia International Railroad Systems Co. Ltd. of Inner Mongolia Autonomous Region, China. The agreement, which is part of China’s strategy for energy independence, calls for CCTI to build a facility in Inner Mongolia to convert China’s vast reserves of coal into liquefied fuels through a clean burning process.

“This contract is another example of how U.S.–China trade is working to promote mutual economic growth while utilizing innovative U.S. technologies to address environmental and industrial concerns associated with fossil fuels,” said Zarit. “As exemplified by our work with CCTI, the U.S. [Foreign and] Commercial Service continues to support expanded sales of American products and services to China—our third-largest export market.”

Under the terms of the contract, 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. Production will then eventually increase to an annual capacity of 80 million metric tons.

The groundbreaking ceremony for the 550-acre facility is scheduled for 2009, with initial clean-coal production estimated to begin within 18 months. The undertaking will represent one of the world’s largest clean-coal and liquefaction projects, and it will provide a foundation for a 1 billion metric ton facility.

The USFCS in Florida and China provided key support to CCTI in developing its business relationships in China by arranging a series of ongoing meetings with Chinese business and government decision-makers and by helping the company understand intellectual property and other issues.

“CCTI is pleased to play a critical role in the realization of China’s energy strategy, and we look forward to the successful deployment of our technology that will help improve the quality of life for millions of Chinese,” said Doug Hague, CCTI’s president and chief executive officer. “[By] working with the U.S. [Foreign and] Commercial Service, we look forward to pursuing ongoing opportunities in the Chinese market and elsewhere.”

The agreement also highlights the International Trade Administration’s contribution to promote clean energy under the Asia-Pacific Partnership (APP) on Clean Development and Climate. In 2006, six Asia-Pacific countries, including the United States and China, created the APP to promote clean energy among its members. In addition to clean coal, APP also targets coal mining; clean power generation; fossil fuels; renewable energy sources; and aluminum, steel, and cement manufacturing.

For additional information about the USFCS, visit www.export.gov. Chinese and U.S. companies looking to conduct business can also visit the China Business Information Center at www.export.gov/China.

Curt Cultice is a senior communications specialist in the International Trade Administration’s U.S. and Foreign Commercial Service