Carbon Energy Ltd has announced a key milestone in the development of its China Joint Venture with Beijing JinHong Investment Co. Ltd. The companies have achieved formal registration of the joint venture company in China by the Chinese corporate registry.
The JV comes as part of Carbon Energy’s strategy to commercialise its underground coal gasification technology globally.
The achievement of registration triggers the formal signing of the Technology Licensing and Technical Services Agreements. JinHong will contribute US$30 million towards developing a commercial demonstration project upon the JV meeting certain milestones.
The JV will have a non-exclusive license to use Carbon Energy’s keyseam technology up until the successful commissioning of the Demonstration Project, and will become exclusive (within the People’s Republic of China) after the successful commissioning of the Demonstration Project.
Carbon Energy will supply technical support, supervision and training for all JV projects under the Technical Services Agreement.
The Chairman of Carbon Energy, Dr Chris Rawlings, said: “The registration is a significant step forward for Carbon Energy, and represents a key milestone in our ambitions to commercialise the Company’s keyseam technology in China and ultimately create a vertically integrated gas business within China, resulting in the development of a portfolio of projects”.
“China offers a compelling opportunity for our keyseam technology; the registration of the Joint Venture represents an important step in Carbon Energy’s diversification, and tangible progress in our China ambitions,” Dr Rawlings added.
Edited from press release by Angharad Lock