AuraSource Reaches Agreement for US Oil Shale Development | 2009-11-20
AuraSource, Inc.. (PINKSHEETS: ARAO), a developer of hydrocarbon clean fuel technology, has entered into an agreement with China Chemical Economic Cooperation Center ("CCECC"), a Chinese governmental division which leads China's energy and environmental research and development. Under the agreement, CCECC agreed to license their patented technology to AuraSource in the United States and its territories.
The license allows AuraSource to use the technology for a period of twenty years. Additionally, AuraSource and CCECC agreed to conduct experiments and analysis on various mineral deposits and start a detailed feasibility study and business planning on the first phase of construction of a one million ton oil shale refinery in the United States.
CCECC's technology consists of patents, patents pending and other intellectual property for the process of extracting fuel, such as lightweight fuel oil and oil dry gas, from bituminous oil shale by low temperature catalyzing. This process is more efficient and cleaner than current alternatives in use today.
Cao Zhide, CCECC's President, commented that, "Alternative energy technology for oil substitution is part of the Sino-US Energy Research Cooperation framework. CCECC is currently working with AuraSource and its investment partner to construct a one million ton oil shale refinery and demonstration venture in Qinzhou, China. We plan to further assist AuraSource to develop one of the most efficient large scale oil shale processing plants in the US."
Philip Liu, AuraSource's CEO, stated, "We aim to develop clean energy technology which is more economical and scaleable than other current technologies in use today. CCECC's low temperature catalyzing technology has overall reliability, thermal efficiency with an optimum production streaming line system, and utilization of organic heating value in all phases of production. AuraSource will further apply for a US RD&D oil shale lease and partner with an oil shale resource development firm to develop a refinery demonstration venture within the United States."
About Oil Shale in the United States
Oil shale is a hydrocarbon bearing rock from which technology can extract petroleum-like oil. Worldwide oil shale deposits are estimated to contain 2.8-3.3 trillion barrels of oil equivalent, of which the majority (2 trillion barrels) is located in the United States. The richest, most concentrated US oil shale deposits are located in Colorado, Utah and Wyoming. These deposits contain approximately 1.2 trillion barrels.
The current oil shale conversion methods are surface retorting and in-situ process. Surface retorting consists of three steps: 1) oil shale mining and preparation; 2) pyrolysis of oil shale; 3) oil refinery. In-situ process involves no mining. It is feasible for deeper, thicker deposits, not as amenable to surface or deep mining methods.
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