Post by
Nikolai on Dec 21, 2007 10:44pm
LOIs,Canada/India, 2nd plant=$630 million
The most recent LOI with Willow would have the company responsible for some of the funding. 2007 has been slow going but Energy Quest seems to be pulling it together in interesting ways. Given the extremely tight share structure, the upshot will be stunning if the Vimala LOI elevates to a definitive agreement as the two plants amount to $1.08bn USD worth of business. The rep. has already been in India for months; hopefully this deal will move forward quickly. There's also the previously announced financing which apparently is still on the table.
The LOIs are appended below along with an article appearing in Asia Cleantech which has some additional comments about the proposed plants in India:
https://asiacleantech.wordpress.com/2007/11/22/india-moves-on-clean-coal-energyquest-to-provide-coal-gasification-technology-for-2-plants-12gw-total/
India Moves on ‘Clean Coal’
November 22, 2007 by David Cheong
EnergyQuest this week said it is providing coal-gasification technology for two plants expected to create 1.2 gigawatts of energy in India.
The news from the Henderson, Nev.-based company was the first many had heard about the plants, which experts said could become India’s largest foray into the controversial “clean coal” arena.
“For better or for worse, and arguably for worse, India has put a lot more emphasis on getting plants built than on getting the latest and greatest technologies for coal,” said Jeremy Carl, a fellow at Stanford University’s Program on Energy and Sustainable Development who has extensively studied advanced coal technologies in China and India.
India has been known to have a particularly dirty form of coal that can be difficult to gasify and has only dabbled in small demonstration gasification projects, Carl said.
“There’s nothing at the utility scale that I’m aware of,” he said.
Proponents — such as Carl and companies like Tucker, Ga.-based CoalTek and Cambridge, Mass.-based GreatPoint Energy — argue that better coal technologies may be able to reduce the greenhouse-gas emissions associated with the popular fossil fuel. Advocates believe such technologies may become key for places like India and China, which are rapidly growing their energy consumption and showing few signs of curbing their coal habits.
“If you look at China and India,” Carl said, “there’s almost no chance that they’re not going to increase their usage of coal, and if we don’t get more serious in figuring out ways to clean this up, we’re going to be beating our fists against the door in frustration.”
But emphasis on coal is unpopular among many environmentalists, who argue that even at its “cleanest,” coal still is far too environmentally damaging. They also argue that carbon storage that would permanently remove carbon-dioxide emissions from the atmosphere is still largely theoretical.
Venture capitalists have moved tentatively, investing in coal technologies just a small fraction of what they’ve poured into the solar space, for example.
EnergyQuest, traded on the Over the Counter Bulletin Board, said it had been selected to provide gasification technologies, procurement, commissioning and management for two projects just east of Mumbai, India — a $450 million, 500-megawatt plant and a $630 million, 700-megawatt plant — constructed and financed by Mumbai-based Vimala Enterprise.
The plants, to be built in the next few years, will be 30 percent more coal-efficient than a typical coal plant, said EnergyQuest CEO Wilf Ouellette.
EnergyQuest has acquired technology Ouellette said is similar to the more widely adopted Integrated Gasification Combined Cycle, which converts coal into a synthetic gas that powers a gas turbine.
“It’s along the same lines, except we’re doing a little more with the coal before we put it into gasification,” Ouellette said. “We’re taking a lot of the dirt out of it, and the de-sulfuring takes place in that process so that there’s less cleanup in the gasification than the conventional method.”
Ouellette says the method could remove as much as 20 percent of the carbon, but he isn’t sure yet where that will go.
“We’re looking at sequestering some of the CO2, but it depends on the formation of the area,” he said. “Right now, it’s just theoretical.”
Underground carbon storage that is still unproven, despite significant research. On Monday, at a meeting in Riyadh, Saudi Arabia, the Organization of the Petroleum Exporting Countries (OPEC) announced a new $750 million fund for carbon-storage research.
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November 19, 2007 - Energy Quest Receives Letter of Intent for Clean Coal Power Plants in India
Energy Quest, Inc. (OTCBB: EQST), an emerging leader in the development and production of hydrogen-enriched alternative fuels and alternative power generation in an environmentally responsible manner, today announced that it has received a Letter of Intent from Vimala Enterprise of Mumbai, India for the construction of two electrical power generation plants in India. One of the plants is a 500MW clean coal power project (Coal gasification) 1st phase and a second 700 MW 2nd phase for a total of 1200 MW for the two plants. Energy Quest will be providing proven gasification technologies, procurement, commissioning and management of the project.
Energy Quest, Inc. and their representative in India have been in negotiations with Vimala Enterprise of Mumbai, India along with their project developers to establish clean coal power projects in India. The agreement remains subject to mutual acceptance of terms & conditions to be set forth in a definitive and binding agreement.
Vimala Enterprise has established all infrastructure including, financing, land, water, coal linkage and related government permission for these new projects. Both plants are anticipated to be coal fired power plants constructed with Energy Quest's clean coal gasification technologies to reduce the effects of global warming.
Mr. Wilf Ouellette, President and CEO of Energy Quest, Inc. stated, "We are pleased to have solidified the Letter of Intent for this substantial project. The clean coal emulsion and gasification technologies for power generation would save 30% over regular coal consumption and also produces distilled water as a byproduct from the process. The project cost for phase one is US$450 million dollars and funded by the end user. Energy Quest will be providing the cost of the 700 MW facilities along with the required agreements and schedules. Upon signing of a definitive agreement and EPC contract, we anticipate commencing the project as soon as all engineering milestones are completed."
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Energy Quest Signs Letter of Intent With Willow Industries
TUESDAY, DECEMBER 18, 2007 9:21 AM
- Market Wire
HENDERSON, NV, Dec 18, 2007 (MARKET WIRE via COMTEX) -- Energy Quest, Inc. ("EQI") (EQST) , an emerging leader in alternative energy and the development and production of hydrogen-enriched alternative fuels in an environmentally responsible manner, today announced the signing of a Letter of Intent (LOI) with Willow Industries. The letter sets forth the basic terms and conditions under which EQI expects to enter into a joint venture with Willow for the construction of a 6 mega watt electrical power generation and gasification plant in the Edmonton, Alberta area.
EQI will provide the technologies and equipment that are presently developed and to be implemented, with Willow providing the feedstock of wood waste and real property. EQI and Willow will achieve scientific breakthroughs that will enable viable wood waste gasification for production of alternative green power at potentially commercial profit levels. The companies plan to rapidly move forward subject to the mutual agreement of the terms and conditions set forth in the proposal in addition to the completion of a joint venture agreement.
The basic terms of the proposed transaction that EQI would offer is to establish a joint venture with Willow whereby they would contribute equally and ownership will be 50% Willow and 50% EQI. Willow will contribute real estate and feed stock; EQI will provide patents, intellectual properties, equipment, management and funds. The proposed equity of the plant when complete will be $12,500,000 CAD. Following commissioning & start up, scheduled to be completed within six months from the signing of this agreement, the joint venture anticipates immediate cash flows with gross revenues of $6,572,168 yielding net revenues of approximately $2,815,115.
"We are excited about working with Energy Quest and completing our joint venture of the proposed power/gasification plant. We welcome the opportunity to be a meaningful participant in this industry," stated Albert Klyne, President of Willow Industries, Inc.
"We are pleased to have secured this opportunity with Willow Industries. This project will mark Energy Quest's first installation of its power generation and gasification system for commercial use," stated Wilf Ouellette, President and CEO of Energy Quest, Inc. "This venture is expected to pave the way for the continued pursuit of additional mutually beneficial opportunities with Willow Industries with respect to EQI's gasification and power generation products."