Evergreen Energy Inc. and TXU Sign Letter of Intent to Test Innovative Coal Technology
January 31 2007 - 8:17AM
PR Newswire (US)
Cleaner Coal Technology Designed to Increase Efficiency and Reduce
CO2 and Other Emissions From Coal-Fueled Power Plants DENVER, Jan.
31 /PRNewswire-FirstCall/ -- Evergreen Energy Inc. (NYSE:EEE) and
TXU Generation Development Company LLC, a subsidiary of TXU Corp.,
have signed a letter of intent for detailed engineering, design
integration and tests of the K-Direct coal refining process. Should
the results from the engineering, design and testing be successful,
the companies could enter into one or more definitive agreements
for the construction of K-Direct coal refineries at new or existing
TXU power plants. The companies have agreed not to disclose more
specific terms of the transaction until they sign a definitive
agreement. K-Fuel(R) refined coal results from an advanced process
that is designed to improve the heating value and lower the
emissions per kilowatt-hour produced from sub-bituminous and
lignite coals. The coal could be refined at the mine or at K-Direct
coal refineries situated alongside existing or new coal-fueled
power plants. The two companies are now evaluating process
compatibility, design options, project costs, schedules and the
detailed results from tests of K-Fuel(R) refined coal processed
from Texas lignite at Evergreen's Gillette, Wyoming coal refinery.
"TXU is setting a new environmental benchmark, raising the standard
for both existing and planned coal-fueled plants," said Mark
Sexton, chairman and CEO of Evergreen. "We are pleased that
K-Direct coal refineries are part of the trend toward cleaner coal
solutions. While many clean energy solutions for coal-fueled power
plants remain commercially unproven and are several years away, we
believe that K-Direct's process could work well with TXU's existing
and planned coal plants. TXU's efforts to lead the nation by using
coal for power generation in an environmentally and economically
responsible manner are commendable," added Sexton. "This is another
example of our ongoing efforts to investigate, develop and
commercialize technologies to reduce emissions," said Mike
Childers, CEO of TXU Generation Development. "Our work with
Evergreen Energy in evaluating the K-Direct coal refining process
is another important addition to this effort." The K-Direct coal
refineries are designed to better and more efficiently reduce
emissions, lower fuel consumption, and capture efficiencies of
scale by using shared or common facilities. Evergreen &
K-Direct Background Using a proprietary process involving steam and
pressure, Evergreen Energy refines a wide range of sub-bituminous
and lignite coals into K-Fuel(R), a more efficient coal that
provides more energy with lower emissions and improves the
performance of post-combustion emission control technologies. Under
the K-Fuel(R) process, a K-Direct refinery located next to an
existing power generating station uses the station's secondary
steam as a power source and returns large amounts of water produced
by the K-Fuel(R) refinement process. For example, when compared to
raw coal from Wyoming's Powder River Basin K-Fuel(R) has
approximately 30 percent more Btu's per pound with an approximate
70 percent reduction in mercury, and upon combustion significant
reductions in sulfur dioxide, nitrous oxides and carbon dioxide on
a "per kilowatt-hour generated" basis. Results will vary depending
on the type and source of the coal. About Evergreen Energy Inc.
Evergreen Energy Inc. refines coal into a cleaner, more efficient
and affordable solid fuel that is available today to meet the
growing energy demands of industrial and utility customers while
addressing important environmental concerns. Visit
http://www.evgenergy.com/ for more information. EVERGREEN ENERGY
FACT SHEET * Evergreen Energy's K-Fuel(R) coal refining process is
a proven commercial technology that is available today (NOW-Gen) to
improve the energy and environmental performance of coals like
lignite. * Evergreen has built the world's first coal refinery in
Gillette, Wyoming that uses the K-Fuel(R) process and has already
produced thousands of tons of refined coal that has performed well
in both laboratory tests and full-scale deployment in large
industrial, commercial and utility plant boilers. Tests showed
reductions in sulfur dioxide, nitrogen oxide, mercury and carbon
dioxide while improving the parent coal by as much as 30 percent in
terms of heat content improvement and water elimination. *
Pre-combustion refinement of coal removes a significant portion of
the pollutants before they are produced, reducing the need to
capture and dispose of them in post-combustion. We Must Pursue The
Best And Most Immediately Available Technologies To Improve The
Environmental And Energy Characteristics Of Coal. * Evergreen
Energy's patented "refined" coal has more energy per pound than raw
coals. Therefore, it is more efficient and produces fewer emissions
per kilowatt-hour generated. * Evergreen Energy's K-Fuel(R) and
K-Direct commercial process is ready today, not years down the
road. * Evergreen Energy's process provides an immediate
environmental and efficiency improvement to utilities, industrial
customers and communities. Efficiency and Environmental
Improvements From Refined Coal * Refined K-Fuel(R) handles and
transports equal to or better than the parent coal it is made from.
* Depending on the source of the raw coal, refined K-Fuel(R) burns
with lower mercury, sulfur dioxide, nitrogen oxides and carbon
dioxide emissions than raw, lignite or sub-bituminous coal when
calculated on a unit energy basis. * The use of K-Fuel(R) produced
either at the mouth of the mine and transported or adjacent to the
host coal-fueled power plant in a K- Direct facility is, in most
cases, a superior, lower-cost compliance alternative to installing
expensive back-end emissions controls that are costly to operate
and contribute substantially to the host coal plant's parasitic
load. Available Topic Expert(s): For information on the listed
expert(s), click appropriate link. Ted Venners
http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=54487
DATASOURCE: Evergreen Energy Inc. CONTACT: Investors, Karli
Anderson, Director, Investor Relations, or Paul Jacobson, VP,
Corporate Communications, both of Evergreen Energy Inc.,
+1-303-293-2992 Web site: http://www.evgenergy.com/
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