In August of 2010, Envidity entered into an exclusive agreement with operator Live Energy Group LLC and Shine Shivee LLC to transform economically stranded coal more than 150m deep in the Shine Shivee license areas into domestic fuel for Mongolia. On 22 July, Envidity exercised that option.

Envidity says that the project has the potential to produce 1,000 barrels per day of synthetic diesel satisfying 10% of local demand within 24 months, and 15,000 barrels per day within 60 months. Envidity says that its project has been recognized and encouraged by Senior Mongolian Government officials as a viable way to tackle the issue of Mongolian fuel self-sufficiency.

Prime Minister Batbold asked me in March 2010 during a meeting in Ulaanbaatar to help bring this kind of project to Mongolia. With the Envidity Project now ready for launch, I have kept my promise to the Prime Minister in bringing this patented UCG-GTL technology to Mongolia to allow domestic production of transport fuels. This is a key strategic project for Mongolia. I look forward to advancing this project with the Mongolian government, and trust that Prime Minister Batbold will underscore his commitment to this project.

—Wesley Clark

The project has the potential to establish more than 7 commercial plants in the next 15 years and will bring as much as $7B in investment, Envidity said.

The Shivee-Ovoo license area (pin). Google Maps. Click to enlarge.

Shine Shivee Company owns 7 exploration licenses totalling 77,410 ha (299 sq. mi, 774 sq. km) over the largest Mongolian Shivee-Ovoo brown coal deposit. A railway from Russia to China crosses through the center of this area. The Mongolian government company Shivee-Ovoo is located inside the Shine Shivee licensed area and currently exploits 0.5-1.0 million ton per year for Ulaanbaatar power stations. The government’s controlled area is 4,384 hectares.

Mongolia purchases 95% of its petroleum products and a substantial amount of electric power from Russia, according to the US CIA’ World Factbook. Trade with China represents more than half of Mongolia’s total external trade.