Evergreen Energy to Establish Venture with WPG Resources to Develop and Commercialize K-Fuel in Australiaadmin
Evergreen Energy Inc. has signed a memorandum of understanding (MOU) to establish a joint venture with WPG Resources to jointly develop and commercialize K-Fuel®, Evergreen’s coal upgrading technology, throughout Australia. In addition, WPG Resources invested $2 million into the company’s previously announced $16.0 million private placement transaction.
“We are very pleased to announce this mutually beneficial joint venture agreement with WPG Resources,” stated Ilyas Khan, Executive Chairman of Evergreen. “Not only will this partnership with WPG enable us to dramatically accelerate the timeline to establish a prominent foothold in this important market, but we have found in WPG a partner who shares our objectives with respect to the upgrading of coal in the Pacific Basin region. We look forward to working in tandem with WPG who has both the underlying resources in the form of extensive coal deposits, and the infrastructure to further our efforts in developing K-Fuel into value for both our companies. Our new venture establishes a focused presence on the Asian markets where we believe the conditions for adopting the K-Fuel technology are most attractive.”
Khan added, “The joint venture is expected to be a very valuable company in its own right. The long-term buoyant nature of demand for coal from India, China, Japan and Korea is an established reality that our joint venture will serve. WPG is a growing and ambitious company in the natural resource area and in them we have found a top-class partner.”
Bob Duffin, Chairman of WPG Resources, stated, “We are excited to be partnering with Evergreen Energy on implementing its K-Fuel technology for the Asian markets. The value K-Fuel brings forth will provide us with innovative coal upgrading applications to meet stringent environmental standards and increase energy output. The value of our coal resources will be enhanced very substantially through the upgrading process and we look forward to working with our existing partners and customers in and around the Pacific Basin region. This has been in line with our long-term strategy, previously articulated on a number of occasions, and I look forward to working with Ilyas and his team.”