Sinopec, NCF to Commercialize CO2-to-fuel technology in China

  ·Commercialisation terms follow recent feasibility studies and site visits to Israel and China, based on the Cooperation Agreement entered into in May

 

Greenearth Energy Limited (ASX: GER) stated that NewCO2Fuels Ltd (NCF) has entered into terms with Sinopec Engineering (Group) Co Ltd (SEG) to commercialise NCF’s award winning CO2-to-fuel technology for the Chinese market. 

 

Following successful feasibility studies performed by SEG, the parties have agreed to terms, detailing the responsibilities and process to commercialise the technology for China and also create a path to roll out full-scale plants following completion of a successful pilot.  This next stage agreement follows the Letter of Intent and was pursuant to the Cooperation Agreement previously signed between NCF and Sinopec Ningbo Engineering Co. Ltd (SNEC) (a subsidiary of SEG), as outlined in previous ASX announcements.

 

The award winning NCF product, which demonstrates a viable, valuable and technologically proven solution to the global problem of CO2 reduction, continues to attract significant interest from several major international groups, including SEG.

SEG is a wholly owned subsidiary of the Sinopec Group (China Petrochemical Corporation), which is one of the largest companies in China and in recent years has invested billions of dollars in international acquisitions, including in Australia.  Sinopec Group ranked second in the Fortune Global 500 in 2015, with reported revenues of US$447 billion.

 

The agreed terms outline responsibilities, milestones and funding process, along with the key objectives of SEG and NCF.

 

Entry into the Term Sheet represents a major step by NCF and SEG towards formalising detailed documentation for the commercialisation agreement.

 

Samuel Marks, Managing Director said: “This agreement is transformational for NCF and the best validation to date for the technology.  To have a partner such as Sinopec Engineering engaged in the commercialisation of the CO2-to-fuel technology is indeed a game changer.

 

“The focus now is on progressing through to the development of large scale commercial plants after Sinopec Engineering secures the requisite funding.

 

“Sinopec Engineering has done an inordinate amount of work to get to the commercialisation stage, and is an impressive partner for NCF in China.  The Chinese market is a huge opportunity for NCF’s technology and represents potentially 40%+ of the global market.  We are enthusiastic about the strength of this partnership and the near term commercialisation opportunity in China.”