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GreatPoint Energy and China Wanxiang Holdings today officiallyannounced the closing of their investment and partnership agreementwhich was highlighted during an official signing ceremony betweensenior US and Chinese government officials on February 19 2012. As part of the transaction, GreatPoint Energy has raised equityinvestment and secured project funding of USD 1.25 billion fromWanxiang to finance and construct the first phase of a one trillioncubic feet per year coal to natural gas production facility. Thecomplex will be located near Turpan, Xinjiang Uyghur AutonomousRegion in the Peoples Republic of China and will utilize GreatPointEnergy's proprietary Bluegas technology. China Petroleum andChemical Corp. China largest company by revenue has agreed topurchase the natural gas produced from the facility and has alreadyannounced plans to construct a pipeline to deliver the gas to theeastern provinces of China. The Bluegas hydromethanation technology developed and owned byGreatPoint Energy directly converts coal into pipeline qualitynatural gas, the cleanest commercial fuel in use globally.GreatPoint Energy's proprietary technology operates at the highestefficiency with the least environmental impact, and producesnatural gas at the lowest cost in the industry. Its waterconsumption is only half of that of competing gasification systems.Inherent in the technology is the ability to capture nearly allemissions, including carbon dioxide which can be sequestered andused for oil production through Enhanced Oil Recovery. Thetechnology is especially well suited for arid regions and wherelow-quality, concentrated coal resources are available, such as inXinjiang. Together, Wanxiang and GreatPoint Energy also plan todevelop large-scale Bluegas projects at other locations in Xinjiangand in other regions of China using the Bluegas technology. Wanxiang and GreatPoint Energy have entered into a joint ventureand have begun engineering the Bluegas complex which, whencomplete, will produce one trillion cubic feet of natural gas peryear. The first phase is expected to commence operation in 2015with an initial annual natural gas production capacity of 30billion cubic feet which will expand to 116 billion cubic feet ofannual natural gas output within two years. Sinopec's agreement topurchase the gas and build the infrastructure to transport it fromXinjiang to the eastern regions of China, including Guangdong andZhejiang provinces and Shanghai, provides strong support for theproject. The Bluegas project is expected to contribute towardsatisfying China's rapid energy demand growth and strong desire toimprove environmental quality. It will provide domestic, cleanenergy derived from a very large and low-cost coal resource base inthe western regions of the country. Following development of the Bluegas plant in Xinjiang, GreatPointEnergy intends to expand to other significant natural gas marketsin and outside of China, including Japan, South Korea, India andEurope, becoming a major global supplier of natural gas that willcompete with traded Liquefied Natural Gas and long-distancepipeline supplies in these markets. As part of the transaction, Wanxiang will become a largeshareholder of GreatPoint and will join the Board of Directors ofthe Company. Other Board members include Ray Lane, Partner atKleiner Perkins Caufield & Byers and Executive Chairman of HewlettPackard, Mr Paul Hanrahan former CEO of AES Corp, Mr Bill WibergPartner at Advanced Technology Ventures, Mr Andrew Perlman,Chairman and CEO and Mr Daniel Goldman President and CFO. Mr Lu Guanqiu Wanxiang Group's Chairman said "Wanxiang is pleasedto be a major shareholder in GreatPoint Energy. Wanxiang believesthat GreatPoint Energy's Bluegas technology is currently theworld's most advanced, lowest cost and most environmentallyfriendly technology for transforming coal into natural gas.Wanxiang looks forward to seeing GreatPoint Energy become a globalleader in the supply of clean energy. I believe the prospects forthis business venture are very exciting." Dr Gu Jun Yuan President of China Wanxiang Holdings said "I believethat this partnership between Wanxiang and GreatPoint Energyrepresents the beginning of a very significant opportunity toconvert some of the world's most abundant and low cost coalsupplies into trillions of cubic feet of clean, valuable naturalgas. I look forward to working with GreatPoint to develop plantsaround the world." Mr Andrew Perlman Chief Executive Officer of GreatPoint Energy said"We are building a major new global energy producer for the twentyfirst century and focusing on one of the largest, most attractive,and fastest growing natural gas markets in the world. And we areextremely pleased that one of the most successful andwell-respected companies in China has become a major shareholder inGreatPoint Energy. Once again, Wanxiang has shown its leadership inentering new industries with the potential for tremendous growth.Their vision of embracing technology innovation to produce cleanenergy in China on a massive scale will be an inspiration for theentire world and we are honored to be a part of it." Mr Daniel Goldman President and Chief Financial Officer ofGreatPoint Energy added that "We are extremely pleased to welcomeWanxiang as one of our strategic investors and establish a jointventure with them in China. This agreement provides a tremendouspathway for commercialization of the Bluegas technology and enablesus to develop and finance multi-billion dollar projects and providelarge quantities of natural gas that will compete with suppliesfrom neighboring countries. We are particularly excited tocontribute toward meeting China's rapid natural gas demand growthwith American technology and engineering of a highly efficient andcost-effective clean energy solution. Over the coming years, we areconfident that this partnership will create thousands of newhigh-quality engineering, technical and construction jobs in the USand China as we build-out large-scale, environmentally attractivegas production facilities." Source - GreatPoint Energy. I am an expert from steel-wirerope.com, while we provides the quality product, such as PVC Coated Stainless Steel Wire Rope , 316 Stainless Steel Wire Rope, 7x7 Stainless Steel Wire Rope,and more.
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