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Headwaters to conduct coal liquefaction study in India

SOUTH JORDAN — Headwaters Inc. said Wednesday that its Hydrocarbon Technologies Inc. subsidiary has been awarded a contract by Oil India Limited, an Indian government enterprise, to study the technical and economic feasibility of applying HTI's direct coal liquefaction technology in India.

Oil India is a public-sector company involved in petroleum exploration and production in the Assam region of northeastern India, an area rich in natural resources but distant from established oil refining operations. The companies have agreed that pending a positive result from the feasibility study, if Oil India elects to proceed with a commercial-scale DCL project, HTI will provide the technology license under negotiated commercial terms.

DCL Technology was first licensed to the Shenhua Group of China in 2002, for use in a $2 billion coal-to-liquids facility under construction in the People's Republic of China.

In the Oil India program, the same DCL technology will be used in HTI's pilot plants to test a representative array of coal samples from the Assam region. Yields and product quality data generated in these tests will be used as the basis for evaluating the economic viability of a large-scale commercial DCL plant in Assam, Headwaters said.