Advancement to the engineering specifications phase follows acceptance by the three entities of results from rigorous tests on coal samples from mines that were subjected to the patented KFuel coal refinement process. The tests found that Kalimantan coal worked well with the K-Fuel process—experiencing significantly improved heating value when compared to the raw lignite extracted from the mines. K-Fuel refined coal had 64% less moisture, 56% less mercury and a 52% increase in heat value from 3,666 kilocalories (kcal) per kilogram (kg) (6,600 Btu/lb) to 5,571 kcal per kg (10,000 Btu/lb).

“Our Asian subsidiary began discussions with this major mining group last fall about the K-Fuel technology’s ability to address their need to upgrade low-sulfur Indonesian lignite before it is barged to high-demand markets elsewhere in Asia,” said Kevin Collins, president and CEO, Evergreen. “We signed a multiphase agreement with this widely known and respected organization, have successfully completed the initial phase and are now aggressively executing development of detailed engineering specifications, economic evaluations and marketability with the goal of constructing a K-Fuel refinery at a site on Kalimantan.”

“Sumitomo continues to be excited about the vast potential K-Fuel has for the Asia-Pacific market, and we will work with Evergreen to advance this project,” said Kazuyuki Takahashi, general manager of the coal department at Sumitomo.

Historically, Australia, Indonesia and China have been Asia’s major coal producers, but economic growth in China and India has increased energy demand and reduced the available supply of bituminous coal, creating a need to open the region’s vast lignite reserves, which the K-Fuel process can upgrade to performance levels approaching that of bituminous coal. According to the World Energy Council, Indonesia has approximately 4.5 billion tons of sub-bituminous and lignite coal reserves.