Headwaters Moving Forward on Philippines Hybrid Coal-to-Liquids Plant

15 February 2007

Headwaters, Inc. is starting the second phase of a $2.8 billion, three-phase project that will result in the construction of a commercial-scale hybrid coal-to-liquids plant consisting of a direct coal liquefaction unit (DCL), an indirect coal liquefaction unit (coal gasification and syngas cleaning unit plus a Fischer-Tropsch (FT) synthesis unit) and a power block. (Earlier post.)

The first phase was the preparation of a feasibility study. This second phase covers the process engineering design of the preliminary front-end, engineering design, technology licensing and the construction of the Fischer-Tropsch Process Demonstration facility. The last phase will be construction of a commercial-size liquefaction plant.

Headwaters will sign four agreements in March covering the Phase 2 program contract, the Fischer-Tropsch co-development agreement, the technology-as-equity investment agreement, and the direct coal liquefaction and design/technical services agreement.