In 6-12 Months, You May Find Yourself Wishing You Were Long This Unknown Clean Coal Stock Today

• Coal is 40% of the global energy mix and is continuing to grow, particularly in Asia and emerging markets. The key to sustainable growth in the coal market is the use of technology to upgrade and improve the characteristics of low ranking coals.

• Clean Coal Technologies Inc. (CCTC) is almost certainly the most advanced coal upgrading technology in the world. The company has completed testing of its technology for removing moisture from coal, increasing the BTU content and reducing the environmental impact by using less coal to generate the same amount of power.

• On the heels of a meaningful partnership with the University of Wyoming, CCTC is reassembling their demonstration plant in Wyoming with the near-term objective of running 500-ton test samples for some of the world's largest coal companies.

• Good outcomes from CCTC's testing later this year or in early 2019 should make this unknown company worth substantially more. At an approximate $40 million fully diluted market valuation, CCTC could easily be worth multiples of where it trades today with positive test results and the commercial activity that would likely follow.

NEW YORK, NY / ACCESSWIRE / October 2, 2018 / Despite pronouncements in the main stream media, coal and coal-powered electricity are far from dead, especially in parts of Asia where it provides most of the electricity used today. By volume, coal consumption is expected to increase for years to come, and this industry isn't dead. You can see this in the trends from large companies in the sector. Arch Coal Inc. (ARCH) and Peabody Energy Corporation (BTU) have both climbed more than 50% in the last 5 years.

A small public company called Clean Coal Technologies Inc. (CCTC) is working to make coal more efficient, cleaner, and cheaper to burn. The technology has been mostly proven out in a demonstration facility that is currently being reassembled in Gillette Wyoming, and a number of large companies are lined up to send test batches immediately following reassembly.

Improving coal quality has been tried before, but no one has done it with successful commercial scale. But, the companies that tried before were valued by the public markets at high prices: a few at almost $1 billion. For CCTC, the upside could be very big if the technology proves successful.

DespiteWhat You May Have Heard, Coal Is Definitely Not Dead

"Coal is dead" has been a common trope in the U.S. press, even as the new Trump administration makes major moves to revive this industry.

Nothing could be further from the truth.

Coal-fueled power plants currently power almost 40% of global electricity according to the World Coal Association. And yes, coal consumption is declining in the U.S., but most emerging geographies in the world are heavily reliant on coal for their energy, in India and other Asian countries first and foremost.

Coal's share as a percentage of the global energy mix IS expected to decline, but by volume it's expected to increase between now and 2022 according to the International Energy Association; coal-fired power generation will increase by 1.2% per year in the coming 4 to 5 years.

In fact, after the Fukushima nuclear disaster in 2011, Japan has refocused its energy efforts back on coal power plants with plans for 36 new plants in the next ten years. In April, the government scrapped a plan to decrease coal consumption and locked in a national energy plan that would have coal provide 26% of the country's electricity in 2030!

What IfCoal Could Be More Efficient?

Coal producers and coal-consuming energy companies alike have long asked themselves this question.

Coal is not all created equal. Coal from Wyoming's Powder River Basin has a burn value (measured in BTUs) of about 8,800, while Appalachian coal has a BTU of about 12,500 to 13,000. You can see that quality is why Appalachia has always been a premier coal region.

That's reflected in the price: PRB coal as of the first week of August had a spot price of $12.95 per short ton; Central Appalachian had a spot price of $72.70 according to the U.S. Energy Information Administration.

So what if PRB coal could be made more efficient to produce more energy? Coal companies could improve their own product and possibly charge more, and energy companies could make the cheaper product they buy, like PRB, act more like coal from the Appalachian region, for instance. The price difference is about 5X!

Low quality coal accounts for about 80% of the coal produced globally, so there is a large opportunity for someone with the right technology.

Not TheFirst To Make Better Coal

That's the modus behind Clean Coal Technologies (CCTC). While other companies have fallen by the wayside with coal-improving technologies, CCTC has stuck with it for the last decade.

Now, they're months away from a critical test of their technology, and the potential for some new licensing and production contracts.

CCTC's Pristine-M technology is designed to make coal more efficient. It does this in a few ways: first, by removing moisture from the coal and then by stabilizing it for transport. The result is an increased caloric value (BTUs), and a stable low-moisture coal for power generation. Removing moisture reduces shipping costs and increasing the coal ranking can possibly improve its market price. The system was designed by the recognized engineering firm Kiewit and the University of Wyoming has taken a keen interest in the tech. The University's involvement, as one of the premier coal research institutes in the world, speaks tremendously about the technology's potential.

CCTC tested a previous version of this technology at a test facility in Oklahoma, and this year they're working on a new facility in Wyoming. In the coming months, they expect to complete facility construction and begin some key testing that could lead to contracts quite quickly. Unnamed Indian and Indonesian coal companies are already committed to ship 500-ton coal shipments of their coal in for testing, and the company has MOUs (memorandums of understanding) in place where with the right outcomes, some Indian companies are committed to licensing arrangements.

There have been high-profile companies working in this area in the past, and when their technology appeared most promising, they were looked upon quite favorably by investors. Unfortunately, older technology in the late 90s and early 2000s failed to work out - the biggest issue was stabilization.

White Energy Company Limited (WEC) was a coal cleaning company that rose to prominence around 2010, peaking at a market valuation of about $900 million. Peabody Energy Corp (BTU) even signed on to build a coal upgrading plant in the U.S., taking a stake in the public company as well. Unfortunately, their upgrading technology and plants were expensive to build, and after some setbacks and poor coal prices WEC trades for pennies.

KFx, Inc. (was KFX) was another coal upgrader whose shares traded as high as $14 and with a market capitalization for the company of nearly $1 billion. Ultimately, the company could never get their upgraded coal to stabilize for safe transport, running the risk of spontaneous combustion, and the company filed for bankruptcy in 2012.

CCTC believes their technology avoids this key problem due to a proprietary stabilization process that involves re-applying extracted compounds from earlier in the process back onto the coal. The goal is to keep the coal from re-absorbing moisture, and to keep dust to a minimum. Investors should know soon enough how commercially viable this as the pilot plant gets up and running in the coming year and energy companies begin running their own test batches with the CCTC technique.

With the right test results in hand, CCTC could join the ranks of forward-thinking energy companies. They already have MOUs in place, according to recent investor presentations, that could result in contracts quickly. Their partnership with the University of Wyoming is also extremely meaningful and gives a lot of credibility to their technology and its potential. If things continue to come together and CCTC fully validates its technology platform, CCTC could look like a very different company in 6 months and shareholders could generate substantial returns.

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SOURCE: One Equity Stocks