Radar partners with New Energy USA for solid biofuel technology based on recovered coal slurry
Radar Acquisitions Corp. announces it has signed an arm's length joint venture agreement with New Energy USA to establish a joint venture to utilize New Energy's Re-Fuel technology process to develop engineered solid fuel products using a combination of reclaimed coal slurry pond waste and biomass. The Re-Fuel technology is a patent pending process that combines a coal waste product with biomass to produce an engineered solid fuel product. The Re-Fuel technology has been licensed for use on three project sites in the United States to date.
Coal mining generates enormous amounts of solid waste in the form of rocks and dirt. This refuse is used to create a large pond or a dam. After this reservoir is built, the void is typically filled with millions of gallons of waste slurry from a coal preparation plant. This impounded liquid waste can sometimes total billions of gallons in a single facility.
According to the published patent application New Energy's technology taps into these vast black lakes, by making:
energy :: sustainability :: coal :: waste :: briquettes :: biomass :: bioenergy :: biofuels ::
The JV agreement sets out terms whereby Radar, through the ownership of 50 percent of a legal entity created for each of the projects, will acquire a 50 percent interest in each of four coal slurry pond briquette projects, as well as the option to participate in additional projects, for consideration of US$1.0 million in common shares of Radar.
Three quarters (75 percent) of the shares will have performance escrow restrictions such that one quarter (25 percent) of the shares will be released upon the commencement of production of engineered solid fuel from each of projects 1, 2 and 3. New Energy will have no voting rights to Radar shares while they are held in escrow. Any shares remaining in escrow after three years will be cancelled.
In addition, the Joint Venture Agreement contemplates payments by Radar of US$150,000 to secure and maintain ownership of the Projects and begin a budgeted work program for the Projects. Such payment will be made to RPS Fuels, LLC, a company created to develop, market and pursue the business of developing Project 1. A sum of US$2,250,000 will be paid to RPS Fuels upon Project 1 reaching the feasibility stage and provided the payment is used for the total project financing needed for Project 1 and to maintain property ownership for the Projects. US$2,250,000 will be paid to RPS Fuels or a second JV Entity, provided that such payment is used to complete the total project financing for Project 1, and provided that the payment is used to maintain ownership of the Projects, and to develop the Projects or any additional projects.
With regards to the option to acquire additional projects, a JV Entity will have a right of first refusal to purchase up to 100 percent of any Additional Project staked, acquired or otherwise obtained by New Energy and/or Radar. The establishment of the Joint Venture is subject to final TSX Venture Exchange approval and the consideration is being held in trust, accordingly.
Radar is a diversified natural resource development company focused on growth through the acquisition, exploration and development of resources and resource related technologies. The company is focused on a joint venture agreement it has with New Energy USA, LLC, to develop engineered solid fuel products (Re-Fuel) using a combination of coal slurry pond waste and biomass.
Image: Marfork Coal's Brushy Fork coal slurry impoundment, which, at its final stage, will hold 8 billions of gallon of coal waste sludge. The impoundment partially lies over old underground mines and is directly upstream from the town of Whitesville, West Virginia. Credit: Vivian Stockman.
References:
MarketWire: Radar Enters into Joint Venture with New Energy USA, LLC, for Engineered Solid Fuel Technology and Coal Slurry Pond Projects - August 27, 2007.
USPTO: Fuel pellet briquettes from biomass and recovered coal slurries - January 11, 2007
Coal mining generates enormous amounts of solid waste in the form of rocks and dirt. This refuse is used to create a large pond or a dam. After this reservoir is built, the void is typically filled with millions of gallons of waste slurry from a coal preparation plant. This impounded liquid waste can sometimes total billions of gallons in a single facility.
According to the published patent application New Energy's technology taps into these vast black lakes, by making:
burnable renewable fuel (RF) briquettes from recovered coal from coal slurry ponds, biomass, and a binder. The briquettes may be augmented with one or more of recovered environmental burnable fraction from municipal solid waste (MSW), agricultural livestock waste, lumber processing residue, solid wood waste material, agricultural by-products and crops, and like burnable waste material. Accordingly, the method for making burnable renewable fuel (RF) briquettes includes the steps of recovering coal from coal slurry ponds; recovering biomass; adding a binder to said recovered coal and said biomass; and forming solid burnable RF fuel briquettes therefrom.Re-Fuel briquettes will benefit the environment through the reclamation of this type of coal slurry in the production phase and cleaner stack and ash emissions in the power generation phase. Production of Re-Fuel can qualify the producing joint venture company for a variety of tax credits while providing coal waste owners/suppliers with a significant benefit by decreasing site reclamation costs. According to Radar, users of Re-Fuel will benefit from a competitively priced, cleaner, more efficient product that may also make them eligible for substantial carbon credits:
energy :: sustainability :: coal :: waste :: briquettes :: biomass :: bioenergy :: biofuels ::
The JV agreement sets out terms whereby Radar, through the ownership of 50 percent of a legal entity created for each of the projects, will acquire a 50 percent interest in each of four coal slurry pond briquette projects, as well as the option to participate in additional projects, for consideration of US$1.0 million in common shares of Radar.
Three quarters (75 percent) of the shares will have performance escrow restrictions such that one quarter (25 percent) of the shares will be released upon the commencement of production of engineered solid fuel from each of projects 1, 2 and 3. New Energy will have no voting rights to Radar shares while they are held in escrow. Any shares remaining in escrow after three years will be cancelled.
In addition, the Joint Venture Agreement contemplates payments by Radar of US$150,000 to secure and maintain ownership of the Projects and begin a budgeted work program for the Projects. Such payment will be made to RPS Fuels, LLC, a company created to develop, market and pursue the business of developing Project 1. A sum of US$2,250,000 will be paid to RPS Fuels upon Project 1 reaching the feasibility stage and provided the payment is used for the total project financing needed for Project 1 and to maintain property ownership for the Projects. US$2,250,000 will be paid to RPS Fuels or a second JV Entity, provided that such payment is used to complete the total project financing for Project 1, and provided that the payment is used to maintain ownership of the Projects, and to develop the Projects or any additional projects.
With regards to the option to acquire additional projects, a JV Entity will have a right of first refusal to purchase up to 100 percent of any Additional Project staked, acquired or otherwise obtained by New Energy and/or Radar. The establishment of the Joint Venture is subject to final TSX Venture Exchange approval and the consideration is being held in trust, accordingly.
Radar is a diversified natural resource development company focused on growth through the acquisition, exploration and development of resources and resource related technologies. The company is focused on a joint venture agreement it has with New Energy USA, LLC, to develop engineered solid fuel products (Re-Fuel) using a combination of coal slurry pond waste and biomass.
Image: Marfork Coal's Brushy Fork coal slurry impoundment, which, at its final stage, will hold 8 billions of gallon of coal waste sludge. The impoundment partially lies over old underground mines and is directly upstream from the town of Whitesville, West Virginia. Credit: Vivian Stockman.
References:
MarketWire: Radar Enters into Joint Venture with New Energy USA, LLC, for Engineered Solid Fuel Technology and Coal Slurry Pond Projects - August 27, 2007.
USPTO: Fuel pellet briquettes from biomass and recovered coal slurries - January 11, 2007
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