AuraSource Reaches Supply Agreement With China Power Investment | 2010-07-30
AuraSource, Inc. (OTCBB: ARAO), a developer of clean energy technology, today announced that its wholly owned subsidiary, AuraSource Qinzhou Co., Ltd., has reached a supply agreement with China Power Investment (Guangxi) Corporation, a wholly owned corporation of China Power Investment (Group) Corporation("CPI"). CPI has requested that AuraSource supply a new generation of Coal-Water-Mixture, AuraCoal, to fuel CPI's Qinzhou thermal plant beginning in the summer of 2011. CPI has agreed to purchase 170,000 tons of AuraCoal per year initially for its 2X130T/H coal-water-mixture boilers that are designed to use AuraCoal as fuel, which is equivalent, in today's prices, to $22 million in annual sales of AuraCoal.
AuraCoal is a Hydrocarbon Clean Fuel ("HCF") that can be used as a substitute for oil. Its processing is designed to remove sulfur and ash from the coal during the pre-combustion portion of the process, reducing energy costs and helping reduce harmful emissions. This proprietary clean coal technology results in a coal-water mixture that contains only trace amounts of sulfur and ash which constitutes a favorable alternative to oil or natural gas.
CPI plans to install two units of 130T/H boilers to supply thermal steam to chemical companies in the Qinzhou Port Development Zone. Mr. Shen Shaohong, the director of the Qinzhou Petrochemical Industrial Development Zone, said, "I am very pleased that AuraSource Qinzhou and CPI are partnering to deliver clean energy to customers within the industrial zone. This supply cooperation will build a showcase of environmentally friendly clean energy applications in the local market."
AuraSource's CEO Philip Liu said, "CPI is one of the largest power utility companies in China and Asia. We are extremely proud to have them as a partner and customer. Once in production, it will open the door to market of our clean coal products in other regions of China."
AuraSource, Inc. is focused on the development and production of environmentally friendly and cost effective industrial energy sources and feedstock used for industrial applications. AuraSource's core technology includes ultrafine grinding and impurities removal processes. Initial industrial applications of AuraSource technology are ultra-fine coal water mixture for heavy oil substitution, and low grade iron ore fine and slimes beneficiation.
For more information about AuraSource, please visit www.aurasourceinc.com.
About China Power Investment Corporation
Founded in December 2002, CPI has a registered capital of RMB 12 billion. In 2009, CPI's operating revenue exceeded 100 billion for the first time to reach RMB 101.2 billion with a profit of RMB 3,165 million. It generated 251.5 TWh electricity and produced 42.97 million tons of coal and 1.1 million tons of aluminum. At present, CPI has controlled installed capacity of 60GW, coal production capacity of 50.15 million tons and aluminum production capacity of 1,755,000 tons. Clean energy accounts for 30% of its total power mix, the largest proportion among the top five generation companies in China. CPI has total assets of RMB 377.6 billion that are distributed in 28 provinces, municipalities, autonomous regions, Hong Kong and Macau, 6 listed companies and 24 large operating power plants of 1000MW and above each.
For more information about CPI, please visit http://eng.cpicorp.com.cn
SAFE HARBOR STATEMENT
This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. AuraSource has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect AuraSource's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause AuraSource's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. AuraSource undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.