Evergreen Energy divests 20% of stake in Chinese JV to Datang Chemical
(ADPnews) - Oct 20, 2010 - US clean energy technologies company Evergreen Energy (NYSE:EEE) said yesterday it has transferred 20% of its stake in a joint venture, equally-owned with Chinese Beijing Gang Jing Hong Ren Technology Co, to Datang Chemical.
Evergreen Energy said it had transferred the stake "as compensation for completing the work necessary to complete the China Package". The K-Fuel China Package is a set of technical documents including detailed engineering design information for main components of the K-Fuel technology -- upgrades low-rank coals providing increased efficiency and reduced emissions -- for use in Chinese projects.
Under the agreement Datang Chemical, utility and chemical producer, will contribute USD 2 million (EUR 1.46m) to fund engineering services for the completion of the K-Fuel China Package.
In January Datang Chemical agreed with Evergreen-China to establish the first plant using K-Fuel technology to upgrade lignite in China's Inner Mongolia region.
Evergreen Energy expects Datang Chemical to set up a plant processing lignite feedstock for gasification with an initial capacity of 400,000 tonnes a year with a single processor train to upgrade lignite.