http://stockcharts.com/h-sc/ui?s=cctc http://ir.baystreet.ca/article.aspx?id=133&1433163407 This Company Could Have One of the Most Disruptive Advances in Clean Energy Seen In Years Monday,June 01,2015 In October, Leidos is expected to finish construction of a 2 metric ton/hour coal-treating plant that will prove Clean Coal Technologies’ (CCTC) Pristine-M process can efficiently and economically remove moisture and volatiles from low-grade coal. If successful, Pristine-M could transform the alternative energy landscape and coal industry, simultaneously. In our view, CCTC is nearing commercialization of one of the most exciting, and potentially important, technological advances seen in years. This advance could be worth billions, and conservatively, create tremendous upside for this emerging Company. CCTC predicts that energy production will increase 67% when ‘upgrading’ coal using Pristine-M, at a cost of $7.50 per ton. The IEA states that for every one percentage point gain in efficiency, there is a 2 to 3 per cent reduction in the amount of greenhouse gasses produced. This would imply that Pristine-M could materially cut emissions by upgrading existing coal-burning plants. In Australia, for example, 21 of 25 coal-burning power plants waste 65%+ of the coal that they burn, according to their government. Retrofitting these dated plants with Pristine-M would be an economically sensible and cost-effective solution for (i) reducing greenhouse gas emissions, and (ii) lowering cost of kWh by improving efficiency of coal input. Importantly, Pristine-M is economically additive, not only improving outcomes for energy producers, eg. coal-burning power plants, but also for coal miners and, ultimately, for end consumers of electricity, who benefit from lower energy prices. One of the largest cost components of coal extraction is transportation. If CCTC’s technology removes moisture, and consequently shrinks the size and weight of the coal, the cost of transporting the fossil fuel plummets. This would [once again] make coal farcheaper than oil and natural gas-burning power plants, specifically, for example, in the United States (where price of natural gas is competitive with coal). Leidos, Jindal Partner To Validate CCTC’s Technology Leidos, formerly known as Science Applications International Corporation (SAIC), is one of the world’s largest defense contractors and employs some of most qualified and experienced researchers, scientists and engineers among its 19,000 employees. Leidos and CCTC have agreed to work together in the construction of commercial 1MM ton/year plants once Pristine-M in proven in October. This partnership is validating of CCTC’s technology because of the seemingly slim economics Leidos has enjoyed to-date, in exchange for years of design, engineering and actual construction work on the 2MT/hour plant in Oklahoma. Indeed, Leidos’ involvement suggests that the defense giant believes Pristine-M is more than likely ‘to work’ and commercial roll-out will be hugely successful. To put commercialization into perspective, Jindal Steel & Power, India’s 3rd-largest steel producer and a large coal miner, hasalready licensed Pristine-M for 25 years and expects to build a 1MM ton/year plant following October’s outcome. Duly, this suggests that another industry conglomerate believes Pristine-M is viable on a commercial scale and likely to succeed in transforming the coal industry. How CCTC Generates Revenue for Adding Value to the Global Coal Supply Chain CCTC makes money in 3 ways: licensing of its technology and ‘know-how’; a royalty on every ton of coal upgraded using the Company’s Pristine-M technology; through the sale of interest in joint-ventures partnerships in specific territories. Let’s elaborate on each. License. A license is granted in exchange for cash consideration. The transaction is straight-forward and involves little to no additional overhead, therefore accreting to the bottom-line immediately. Royalty. To use Jindal as an example, after licensing Pristine-M from CCTC, the conglomerate will pay the Company $1 per metric ton of coal processed using CCTC’s methodology for upgrading coal. Similarly, a royalty stream would [presumably] involve little to no additional cost for CCTC to earn it, and therefore also add to the bottom line. Joint Ventures. Should CCTC successfully commercialize Pristine-M, it will be faced with a gigantic task of reaching thousands of potential end users, including power plants, steel/iron producers and miners. Regional partners could be a better way to reach the largest and most lucrative customers, quicker. Presumably, CCTC would be paid an up-front fee in exchange for a % interest in the joint venture. Again, this would take the form of high-margin cash flow to the Company and, consequently, its shareholders. To put all of this in perspective, as of the last update CCTC had ~40M shares outstanding (not including dilutive securities). Shares recently traded hands at a valuation of just ~$10 Million. If in October, Pristine-M is successfully tested, CCTC would need to enter into perhaps one licensing deal or joint venture to realize revenue equal to its current valuation. Even if global roll-out demands allocation of several million to overhead expenditure in 2016/2017, any revenue generated above that fixed cost is profit. CCTC’s Pristine-M is tackling a huge emission problem with coal. Further, not only is clean coal fostering the idea of alternative or clean energy, but it actually makes economic sense. The Company explains the economics in its presentation [click here], where they break down the cost of Pristine-M and illustrate the impressive return on investment (ROI) for clients who adopt the technology for upgrading coal. For now, CCTC appears to have first-mover advantage in commercializing one of the most important technologies the trillion dollar coal industry has ever seen. We think that investors should be paying close attention to the October catalyst because Pristine-M could also be one of the biggest advances seen in alternative energy in years.
Anyone with half a brain knows that "clean coal" is an oxymoronic marketing term from the coal industry lobby. I'd short this mofo if anything.