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Environmental Clean Technologies Limited (ESI) has signed a Memorandum of Understanding (MoU) with ELBIS Sp.z o.o (ELBIS), a wholly owned subsidiary of the State-controlled power utility Polska Grupa Energetyczna S.A. (PGE), to co-develop a localized business case for a Coldry plant in Poland. ELBIS is responsible for evaluating and implementing coal drying technology in line with other major initiatives stemming from the recent 15% divestment of PGE worth A$2.2Bn and the MoU, executed by ELBIS President Mr. Tadeusz Banasiak, provides for the scoping and detailed assessment of a Coldry plant with an initial production output capacity of three hundred thousand tonnes per year within the Bełchatów station complex.

“At 4400MW, the Bełchatów Lignite power plant is the largest lignite power station in Europe.” commented ECT Chief Executive Kos Galtos during his recent visit to Poland, “We now look forward to developing a coal drying solution that opens up value-added downstream markets for lignite assets and addresses Poland’s emission reduction ambitions, while enhancing the nation’s energy security.”

ELBIS President, Mr. Banasiak said “ELBIS is looking forward to working closely with ECT to explore the application of the Coldry technology.” The detailed site-specific scoping and assessment of this project will begin immediately and progress through 2010, with ELBIS contributing expert local knowledge to complement Arup’s basis of design and international capabilities, with additional local partners to be recruited. “This development is consistent with the strategic intent communicated to our shareholders at our recent Annual General Meeting and places us in a stronger position”, said ECT Chairman Dave Woodall. “Only by formally engaging with major players in key global markets will ECT enhance the commercial and environmental contributions of our technologies and deliver benefits to our stakeholders.”

ELBIS is a subsidiary of “Bełchatów” Power Plant (PGE Elektrownia Bełchatów S.A.), whose majority shareholder is PGE Power and Mining (PGE Górnictwo i Energetyka S.A.), which in turn belongs to the Polish Power Group (Polska Grupa Energetyczna S.A.). ECT is in the business of commercialising and selling disruptive, leading-edge technologies that have game-changing potential within the energy and resources sector that are capable of delivering environmental and commercial benefits. It is focused on advancing a portfolio of such technologies that have attractive market potential. This potential is largely informed by global markets that exhibit significant potential for growth and enables it to secure sustainable profits through licensing royalties or other commercial mechanisms.

www.ectltd.com.au

Environmental Clean Technologies Limited (ESI) has signed a Heads of Agreement for the establishment of a Special Purpose Vehicle (SPV) with Alexis Minerals International Pty Ltd (AMI), to construct a plant for the production of 10M tonnes per annum of Coldry (Black Coal Equivalent) over the next 30 years.

AMI holds rights for extensive low rank coal (LRC) reserves in East Kalimantan, Indonesia. The reserves exhibit high levels of moisture and responded successfully to Coldry production trials and independent testing earlier this year.

Mr. Leslie Pereira, Director of AMI says of the project “We are very keen to explore the value adding opportunity Coldry technology represents. Coldry will allow us to improve the economic value associated with our coal reserves through dewatering, and provide a more competitive Black Coal Equivalent to address our target markets of neighboring South East Asian countries such as China, India, Bangladesh, Thailand, Vietnam and the Philippines.”

This agreement provides for ECT to contribute access to its Coldry intellectual property, plant designs and expertise, and for AMI to contribute sufficient coal reserves as well as a suitable plant location in Indonesia for the project.

Both parties will contribute sufficient resources to the SPV to commence the preparation of an Investment Memorandum to attract further investment to fund a formal feasibility study.  The feasibility study is expected to be completed before the end of Q4 CY2010.

“This development is a further milestone in the commercialisation of ECT’s Coldry technology and contributes to the realisation of our emerging markets growth strategy.

The agreement is consistent with our aim of generating significant shareholder value, while at the same time adding value to AMI’s LRC reserves” said ECT Chief Executive, Kos Galtos. “Alexis will be contributing capital to the SPV so we can move forward promptly. We are delighted to be able to progress two concurrent Coldry projects, the 20M tonnes per annum plant in Australia and now this exciting opportunity in Indonesia.”

www.cleancoal.com.au