Carbon Friendly Solutions signs MOU with major iron and shell producer in China
Carbon Friendly Solutions Inc. (CNSX: CFQ) announced the company, through its wholly-owned subsidiary Microcoal International Inc. (“MCI”), has signed a Memorandum of Understanding (“MOU”) with Hebei Iron and Steel Group Limited (“HBIS”), a major iron and steel producer in China, setting out the terms for a detailed project design package to be developed for a large scale industrial facility. HBIS utilizes approximately 9 million tonnes of coal per year to produce steel. Microcoal technology has been developed to reduce input costs, optimize operational performance and decrease environmental footprint.
Microcoal is focused on upgrading coal through the use of their patented technology. International Energy Agency (“IEA”) statistics indicate that China is one of the largest thermal and metallurgical coal markets worldwide. Thermal coal is primarily used for generating electricity, while metallurgical coal, which must contain specific coking properties, is used in steelmaking. China produces 51% of the world’s metallurgical coal making it world’s largest producer and consumer of metallurgical coal, accounting for over 500 million tonnes of consumption in 2010. (Source: IEA & World Steel Association)
Further, Carbon Friendly reports that its second visit to China has been successful in establishing a number of relationships with coal-fired utilities, which may provide significant opportunities for Microcoal’s patented technology, given that China relies on coal for 79% of its electricity generation.