Columbia Clean Power & Fuels, Inc., a company that engages in coal mining, coal coking, and clean coal technology operations in the Republic of Columbia, recently announced that it has received the complete results of a feasibility study that has been prepared by Hong Kong Dongshi Coal Chemistry Engineering Consultancy & Management Co. Ltd. for the Company’s planned 200,000 tons-per-year coking production facility.

This facility is a part of the Company’s strategy to provide for market-ready high-grade coke to the global industry of steel, in addition to the mining and sale of metallurgical coal in its first phase of development and commercialization. The consumption of coke worldwide, a very important element in the manufacturing of steel, rose to an estimated 595 million metric tons in the year 2010 (which represents an estimated global market of US$270 billion for the current market prices) and is expected to increase to 732 million metric tons in the year 2013, with Asia in the lead for consumption.

Columbia Clean Power anticipates building a modern, safe, and efficient coke production plant that utilizes the patented Clean-Type Vertical Heat Recovery Coke Oven (CVHRCO) technology that is manufactured in China. The Company’s facility would be the very first of its kind in Columbia.

In Columbia, a majority of metallurgical coke production has traditionally used “beehive ovens”, which most often produce inconsistent quality metallurgical coke that have a very limited acceptance by the major steel mills in the key global markets and that can release greenhouse gases. The goal for the CCPF coking production facility is to produce metallurgical coke of high quality to sell mainly in the international steel industry.

This 200,000 ton-per-year coke plant is expected to be built using the CVHRCO technology that was first developed and patented in China in the year 2003. Twelve coking plants have been built in China that use this CVHRCO technology to date. In recent years, many improvements have been made to the technology and a second-generation plant in India is currently under construction.

“We believe the 200,000 ton facility we are envisioning will be transformative for the Colombian coal and coking industries. The technology we have identified has important features such as a low coke burning loss rate, shortened coking time, higher coke quality and uniformity, smaller carbon footprint, lower operating and capital costs, and more reliable equipment with estimated production life of over 25 years,” said Graham Chapman, CCPF’s Chief Operating Officer. “Importantly, for the environment, the most outstanding characteristic of the CVHRCO technology is that substantially all of the chemical byproducts, toxic gases and liquids are converted into high-temperature thermal energy during the secondary combustion in the burning chamber. We estimate this utilization of the waste heat produced from the coking process for power generation, along with other factors, will contribute to accelerated pay-back time frames and attractive returns on investment.”

Dongshi has analyzed the technology and equipment, the proposed initial sites that are currently under analysis and review by CCPF, and the characteristics of Columbian coal that is identified as feedstock. The results of the study show that the facility is both economically and technically appropriate and feasible. The project will play a key role in local and regional economic development in the municipality that has been selected by the Company for the location of its facility. Construction and operation for the facility is expected to generate more than 100 jobs in the local community, which includes the skilled position that would contribute to human capital development in Columbia.

CCPF has estimated that the amount of coal that is required for the Heat-Recovery Coke Plant will be approximately 280,000 tons a year, which it expects to produce internally from its planned mining operations. In some cases, CCPF has planned to buy coking coal from local producers to blend and ensure a more consistent supply during full commercial production. The company plans to export the metallurgical coke it will produce to markets in North America, Russia, Europe, India, Brazil, and China.

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