"Coal liquefaction project proponent to sign 4 deals
By Abigail L. Ho Inquirer dot net Last updated 06:31am (Mla time) 02/16/2007
MANILA, Philippines -- After committing to invest initially $6.6 million, American firm Headwaters Inc. will be signing four agreements with local partner H&WB Corp. to start the second of a three-phase project that will convert coal into liquid fuels, a project official said.
The project is estimated to cost $2.8 billion. The first phase, preparation of a feasibility study, has been completed. The last phase will be construction of a commercial-size liquefaction plant.
Antonio Ver, president of local development partner H&WB, said the four agreements to be signed in mid-March included the Phase 2 program contract, the Fischer-Tropsch co-development agreement, the technology-as-equity investment agreement, and the direct coal liquefaction and design/technical services agreement.
The program contract covers the entire second stage of the project�the process engineering design of the preliminary front-end and engineering design, technology licensing and the construction of the Fischer-Tropsch Process Demonstration, the facility that turns coal into liquid fuels.
The Fischer-Tropsch co-development agreement will ensure that all existing and future improvements, as well as new intellectual property rights, will belong to Headwaters.
However, Headwaters and H&WB �are willing to share license revenue from the first 100,000 barrels per day commercial capacity at 25 percent of the cash value of the license revenue collected as return of investment to the FT-PDU program contributor/investor, excluding US government funding agency grants.�"