Klean Coal presents a great opportunity to build extremely profitable alternative fuel projects based on coal as a primary feedstock due to large arbitrage opportunity available between the price of oil and the cost of coal as an energy feedstock. By being vertically integrated one can mine coal profitably for approximately $30 per ton which gives a feedstock cost for coal around only $1/MMBTU. When oil is at $60 per barrel, oil costs over $10 per MMBTUs. Klean Coal is currently examining the opportunity to acquire a substantial coal reserve with a plan to monetize the coal reserves by making synthetic natural gas, methanol and electrical power. Klean Coal also has the ability to convert the synthetic natural gas we extract from the coal to produce ethanol through a new patented bio-reactor system.
Other uses for the synthetic natural gas are the production of urea and jet fuel. Depending on the market conditions for liquid fuels and chemicals it also makes sense to evaluate the construction of a small Integrated Combined Cycle “IGCC” power plant to produce power for export to the grid. It is these unique plant configurations and feedstock flexibility that makes Klean Coal’s technology so superior. Our gasification technology can use all types of coal even high sulphur coal with high moisture contents and low BTU values are no problem for our system. The sulphur is easily scrubbed in the gas phase while the excess water from the coal is used directly in the process of making the liquid fuels.