In the News

Vertus Technologies’ first China JV clean coal client

May 06, 2008. London, UK – Nviro Cleantech plc (AIM:NVR), a leader in commercialising environmental technologies including clean coal for power generation, is pleased to announce that its Chinese joint venture, Balama Nviro Limited (“Balama Nviro”), has signed an Agreement with Shenyang Coal Trade Group (SCTG), of north-eastern China, under which Balama Nviro will build and operate Nviro’s Vertus RTP units to remove environmental contaminants from SCTG’s coal.

Through Balama Nviro, this fuel evaluation and testing agreement brings Nviro’s subsidiary, Vertus Technologies, its first clean coal relationship in China. The agreement represents a significant corporate milestone, marking the commencement of the roll-out of Vertus’ Reductive Thermal Processing (“RTP”) technology in China, and demonstrating substantive progress towards Balama Nviro’s commitment, as announced in June 2007, to establish its first two installations in the region.

The Fuel Evaluation and Testing Agreement will involve the detailed analysis of fuel sources, Vertus process plant facilities, and optimised fuel specifications for the various solid fuel resources outlined below. In addition, it will include detailed planning for a phased installation of Vertus RTP equipment to address the large volumes of each fuel resource. The modular format of the Vertus RTP technology will enable Vertus and SCTG to manage both site logistics and capital costs effectively, so that the installation of the Vertus technology can occur over a practical period that suits both businesses.
Under the Agreement, Balama Nviro will build and operate Vertus RTP clean fuel systems to treat the following coal resources within SCTG:

• High-sulphur coal from the ten SCTG mines in northern China, producing 1.5-5.0 million tons per year producing some 16 million tons of coal products each year.
  
  
• Coal “gangues”, a waste coal material with energy value that, uniquely, Vertus RTP can extract, thereby removing a significant environmental problem. The SCTG stockpile has reached more than 20 million tons, with the volume increasing at a rate of 2 million tons per annum.
  
  
• Coal preparation to optimise fuel energy values for both an existing 50 MW power plant utilising 250,000 tons per year presently and a planned 300 MW, power plant to be operational in 2010.

Derek Choi, Director of Balama Nviro, said: “We are delighted with this opportunity to develop a long-term relationship with a large and fast growing coal business like SCTG. We will work together to develop the most effective ‘install and operate’ programme possible, thereby ensuring that we add value to SCTG’s businesses over the coming years by deploying the Vertus RTP technology to improve its environmental and financial performance, whilst increasing its sustainability credentials.”

Chris Every, CEO of Nviro Cleantech, said: “It is great news for our Chinese JV to see the timely fulfilment of roll-out plans announced last year. SCTG is a leader in the coal and solid fuel Industry, and we are very excited to be entering into a relationship with them. The opportunity to address multiple projects with the Group reflects both the strength and flexibility of the Vertus technology platform. Furthermore this Agreement demonstrates the skill, dedication, and resourcefulness of our JV and I believe this is an excellent first step in addressing the Chinese solid fuels market and will give us a strong platform to continue to grow in China.”

For further information:

Nviro Cleantech plc
Chris Every, Chief Executive Officer
Tel: +44 (0) 20 7451 2473
cevery@nvirocleantech.com

Grant Thornton Corporate Finance - Nominated Adviser
Fiona Owen
Tel: +44 (0) 20 7383 5100

Fairfax I.S. PLC - Broker
Ewan Leggat - eleggat@fairfaxis.com
Tel: +44 (0) 20 7598 5368

Media enquiries:

Abchurch
Justin Heath/Monique Tsang - monique.tsang@abchurch-group.com
Tel: +44 (0) 20 7398 7712

About Nviro cleantech plc:

Nviro Cleantech plc is a leader in commercialising “clean” technologies, such as renewable energy, waste recycling, emissions control and air quality monitoring, that benefit the global environment. The Company operates by acquiring a strong, balanced portfolio of near-to-market technologies that address large demand needs in a breadth of markets, and which are viable and cost-effective.

The Company is developing a portfolio currently comprising five clean technologies. These include:

- Vertus RTP, the Company’s lead technology – the reductive thermal process (RTP) is designed to cleanse low-quality coal and biomass to produce high-grade fuel, which is optimised and tailored specifically for the individual needs of heat and power producers.
- MicroRelease, its secondary technology – designed to recycle medium density fibre ("MDF") and particle board into a high-quality reusable wood fibre;
- Additional technologies in air quality evaluation, air purification and carbon ignition.

Nviro Cleantech focuses on solutions that can be brought to market quickly, and with maximised financial potential, using proven technologies and management teams. It systematically targets environmental innovations that do not require radical shifts in consumer behaviour nor large capital investments to adopt.

About Balama Nviro Limited
Formed in July 2007, Balama Nviro is a joint venture between Nviro subsidiary, Vertus Technologies and Hong Kong based company Balama Prima Engineering Ltd. The JV was established to develop the infrastructure and market for clean coal and clean biomass plants in China.

Balama Prima Engineering Ltd is deeply involved in infrastructure engineering in China via the application of leading technologies from the USA and Europe in the road resurfacing market, slip form concrete, super-flat flooring and trenchless laying as well as a comprehensive range of grinding equipment for the biomass market. It was established over 25 years ago and now has 12 operating sites and two large manufacturing facilities in China, employing over 800 people.

About Shenyang Coal Trade Group
Shenyang Coal Trade Group (SCTG) was formed in 2001 by commercialization of the former Shenyang City Bureau of Coal Industry. SCTG produces 16.4 tons of various coal products annually. It operates 10 main mines in Liaolin Province and Heilongjiang Province with total area of operation covering over 370 square km. Total coal reserve is over 2 billion tons SCTG’s main business operations include coal, power generation, gypsum, cement, construction materials and machinery. Future strategy includes investment in CHP coal-fired power plants as one of the key business.

SCTG currently operates a 50 MW facility and is building a 300MW facility schedule to operate in 2010. SCTG is a part of Liaoning Hongyang Energy Investment Ltd, which is listed on the Shanghai Stock Exchange (ticket number - SH600758).  In 2007, SCTG recorded a revenue of RMB 8 billion (US$1.15billion) and Hongyang Energy RMB150billion (USD21.4billion).

 

 

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