Global Signs MOU With ShenMu SanJiang Coal Chemical Company Ltd. To Form A New Joint Venture Entity To Utilize KDV Technology In The People's Republic Of China
New York NY - Global Energy, an alternative energy innovator focusing on the processing of organic solid and energy waste into usable products, recently announced that the Company had entered into a Memorandum of Understand (MOU) with ShenMu SanJiang Coal Chemical Company Ltd. ("Shaanxi") located in the People's Republic of China.
Global has certain rights to market and use technology and equipment for the conversion of Municipal Solid Waste ("MSW"), organic materials, sludge and other hydrocarbon materials to diesel oil based on the AlphaKat KDV technology.
Under the terms of the MOU, Global and Shaanxi, pending completion of due diligence of the KDV technology in Germany, plan to jointly own a new entity. Global would own 51% of the new entity, unless Sinopec Beijing Governmental Energy Company becomes a substantial equity partner, in which case Global's interest would be 26%. The new entity would initially build, own and operate an AlphaKat system expected to produce ten thousand (10,000) liters of diesel per hour from tar oil. Shaanxi is a producer of blue coal, where significant quantities of tar oil are produced as a residual of the production process. Shaanxi would provide the new company with tar oil at a discount to the published market price for conversion into high quality diesel. The MOU provides for the extension and growth capabilities of the "system" after successful conversion of tar oil to diesel. Global Energy, under the terms of the MOU, would be entitled to royalties from the sale of diesel produced by the AlphaKat KDV Technology.
Completion of the transaction is subject to due diligence and negotiation of final documentation.
"The completion of the transaction in the MOU would represent a huge leap forward for our company into the People's Republic of China and to meeting our mission of a global presence, providing ecologically sound solutions to the burgeoning energy crisis while generating revenue. Global estimates that there are potentially millions of tons of tar oil in the region. We enthusiastically enter the due diligence process and hope to sign a final agreement in the near future," stated Asi Shalgi, CEO of Global Energy.
SOURCE: Global Energy