Clean Global Energy (ASX:CGV) Chairman Speaks With Boardroom Radio On The India Project With Essar (LON:ESSR)

Sydney, Feb 15, 2011 AEST (ABN Newswire) - Clean Global Energy (ASX:CGV) Chairman and CEO, Mr John Harkins, has told Boardroom Radio that the binding Heads of Agreement with $US20B energy company, Essar (LON:ESSR), to commercialise Clean Global Energy's UCG expertise in India, is a "marriage made in heaven".

Mr Harkins said Clean Global Energy's revenue stream had already begun through fees to assist Essar to complete its bid for UCG coal blocks from the Indian Government.

Under the agreement, Clean Global Energy may generate up to $US60M in licencing and project management fees during design, construction and commissioning of a pilot and then a commercial UCG plant, and royalties of up to $US20M after achieving commercial production of UCG Syngas.

Mr Harkins told Boardroom Radio that the agreement was a commercially rewarding situation for Clean Global Energy, as Essar would bring "real muscle power" to the project by carrying the capital costs of building the UCG plants early on in the project, while CGE would take revenue from the licencing agreement for use of CGE's technology and expertise.

As announced to the market on February 10, Essar has agreed to free carry CGE for 20% equity through to a commercial UCG Syngas plant, at which time CGE will pay for that equity at cost (up to $US30M), which should have a valuation of at least $US100M based on NPV modelling.

The technology licence agreement is triggered if Essar is granted a UCG block/s by Coal India Limited (BOM:533278) (NSE:COALINDIA), its subsidiaries or any other body corporate or government authority.

Both Essar and CGE are confident of obtaining approved UCG blocks.

You can hear Mr Harkins' interview at Boardroom Radio from this website address:
http://www.brr.com.au/asx/CGV/clean-global-energy-limited/

Contact

Mr. John Harkins Chairman and CEO Tel: +61-2-9230-0318 Mr. Andrew Whitten Secretary/Legal Counsel Tel: +61-2-9264-2216 Clean Global Energy Limited http://www.cleanglobalenergy.com.au