ENVIDITY SUBMITS ITS APPLICATION FOR A UCG AGREEMENT TO THE MONGOLIAN GOVERNMENT
August 29, 2011, Ulaanbaatar – Timely action on the UCG Investment Agreement (fiscal stabilization agreement) between Envidity and the Mongolian government would bring our USD 1 billion Shivee Ovoo Coal Gasification and Gas to Liquids (“UGC/GTL”) project closer to realization. This project is expected to create approximately 3,000 construction and 150 permanent higher salaried jobs, reduce fuel dependency and prices, introduce patented technology, and raise millions of dollars in royalty and tax revenue for Mongolia.
“Mongolian and United States officials have discussed this UCG/GTL project recently. I encourage the Mongolian government to move our application for a UCG Investment Agreement expeditiously through the necessary reviews and approvals” said retired General Wesley Clark, Chairman of Envidity. “Everybody wins with this project – especially the average Mongolian.” “We have provided introductory briefings to Government officials on our project to convert Mongolian coal to clean, lower cost fuel for the Mongolian people. We are encouraging Mongolian, United States and Canadian Governments to move forward together so that we can begin to use patented technology and our unique process to provide something that will benefit almost every person in Mongolia” added Jeff Brookman, CEO of Envidity.
“With this project Mongolians will get an abundant stable supply, high quality fuel that will cost less at the fuel pump because Mongolians will not have the hefty Russian export duty included in their price of fuel”, he remarked. “What I like best about the Shive Ovoo UGC/GTL Project is that Mongolians will be making liquid fuel, in Mongolia, with Mongolian raw materials, and distributed to market by Mongolians” emphasized General Clark, referring to Envidity’s Mongolian partners, Shine Shivee and Live Energy Group, together with Petrovis, with whom Envidity has a distribution MOU.
“The initial phase of the project will supply 10% of Mongolia’s current demand for diesel within 24 – 36 months. Within five years, we’ll be producing 15,000 barrels a day of premium clean diesel. That would supply all of Mongolia’s current demand for diesel, with some left over for export” put in Mr. Brookman. “This fuel is almost as clear as water, so no more black smoke when the bus pulls away from the curb. It also works much better in cold weather than normal diesel. You’ll notice the difference when you start your engine on cold mornings. It’s even biodegradable”.
“Another aspect that I find exciting is that our raw material is otherwise valueless, low quality brown coal that is too deep to mine conventionally. What makes this possible is the “Western” patented technology we’re bringing to Mongolia. Our process creates no open pit, no tailings, no produced water and no vented fumes. Our equipment has a very small footprint and is compatible with multiple surface use of the land, so existing and planned coal mining operators lose nothing. Grazing or farming operations would see little or no impact” said General Clark.
“Clean diesel would be emphasized in the first phases of the project, but other products can also be made. Jet fuel, chemical feedstocks, gasoline, cooking gas, even fertilizer could be produced. Significant amounts of low cost electricity will be generated by using the waste heat from our unique UCG/GTL process” interjected Mr. Brookman. “Other technologies could provide some of these things, but our process is the only one that can bring all of the benefits together.” This is important because the exploration licenses covering some 77,410 hectares near the city of Choir may be able to support six additional 15,000 barrel a day projects.
Envidity has secured $120m of cash and access to an additional $850m in debt for a total of $1B in foreign direct investment into Mongolia over five years.
“Mongolian and United States officials have discussed this UCG/GTL project recently. I encourage the Mongolian government to move our application for a UCG Investment Agreement expeditiously through the necessary reviews and approvals” said retired General Wesley Clark, Chairman of Envidity. “Everybody wins with this project – especially the average Mongolian.” “We have provided introductory briefings to Government officials on our project to convert Mongolian coal to clean, lower cost fuel for the Mongolian people. We are encouraging Mongolian, United States and Canadian Governments to move forward together so that we can begin to use patented technology and our unique process to provide something that will benefit almost every person in Mongolia” added Jeff Brookman, CEO of Envidity.
“With this project Mongolians will get an abundant stable supply, high quality fuel that will cost less at the fuel pump because Mongolians will not have the hefty Russian export duty included in their price of fuel”, he remarked. “What I like best about the Shive Ovoo UGC/GTL Project is that Mongolians will be making liquid fuel, in Mongolia, with Mongolian raw materials, and distributed to market by Mongolians” emphasized General Clark, referring to Envidity’s Mongolian partners, Shine Shivee and Live Energy Group, together with Petrovis, with whom Envidity has a distribution MOU.
“The initial phase of the project will supply 10% of Mongolia’s current demand for diesel within 24 – 36 months. Within five years, we’ll be producing 15,000 barrels a day of premium clean diesel. That would supply all of Mongolia’s current demand for diesel, with some left over for export” put in Mr. Brookman. “This fuel is almost as clear as water, so no more black smoke when the bus pulls away from the curb. It also works much better in cold weather than normal diesel. You’ll notice the difference when you start your engine on cold mornings. It’s even biodegradable”.
“Another aspect that I find exciting is that our raw material is otherwise valueless, low quality brown coal that is too deep to mine conventionally. What makes this possible is the “Western” patented technology we’re bringing to Mongolia. Our process creates no open pit, no tailings, no produced water and no vented fumes. Our equipment has a very small footprint and is compatible with multiple surface use of the land, so existing and planned coal mining operators lose nothing. Grazing or farming operations would see little or no impact” said General Clark.
“Clean diesel would be emphasized in the first phases of the project, but other products can also be made. Jet fuel, chemical feedstocks, gasoline, cooking gas, even fertilizer could be produced. Significant amounts of low cost electricity will be generated by using the waste heat from our unique UCG/GTL process” interjected Mr. Brookman. “Other technologies could provide some of these things, but our process is the only one that can bring all of the benefits together.” This is important because the exploration licenses covering some 77,410 hectares near the city of Choir may be able to support six additional 15,000 barrel a day projects.
Envidity has secured $120m of cash and access to an additional $850m in debt for a total of $1B in foreign direct investment into Mongolia over five years.
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