KFX Inc. and Cleco form alliance to develop lignite/biomass technology

PINEVILLE, La., Oct. 10, 2001 — KFx Inc. and Cleco Corporation, today announced an alliance to develop use of K-Fuel Technology and other processes to make lower grade coal more efficient and cleaner.

The strategic alliance is between wholly owned subsidiaries of the companies, Cleco Midstream Resources LLC, a wholesale energy services company, and K-Fuel LLC.

K-Fuel Technology improves lower grade coal prior to combustion to produce an ultra-low sulfur fuel, with lower NOx emissions. It also reduces the amount of carbon dioxide released into the atmosphere per kilowatt generated.

“The use of clean coal technologies will allow electricity producers to burn an abundant fuel source, broadening fuel diversity opportunities,” said David Eppler, president and CEO of Cleco Corporation. “Cleco is excited about the possibilities this alliance with KFx will bring and the opportunity to participate in progressive technology that could produce a cleaner environment.”

“The world is full of low-grade coal reserves,” said Ted Venners, chairman & CEO of KFx Inc. “We have the technology available to use these abundant indigenous resources to our country’s advantage. We’re glad to work with forward looking companies like Cleco to make our country cleaner and less energy dependent on foreign oil.”

The alliance will focus on improving the use and environmental impact of lignite coal and also will investigate the possibilities of combining biomass, a raw or processed plant material, with lignite to produce a cleaner burning fuel.

K-Fuel LLC is currently working with the Environmental Protection Agency and the U.S. Department of Energy to address various pre-combustion benefits for subbituminous and lignite coals in the area of mercury and other trace elements.

Cleco Corp. is a regional energy services company headquartered in Pineville, La., with more than 3,000 megawatts of electric generating capacity in operation or under construction. Cleco has an unregulated midstream energy business that develops and operates energy assets in Louisiana and Texas and a regulated electric utility company that serves about 250,000 customers across Louisiana. For more information, visit www.cleco.com .

KFx provides total fuel solutions for the power industry. Its patented K- Fuel® process converts low heating value coal into clean, high-energy fuel. KFx’s web site address is www.kfx.com . Pegasus Technologies, Inc. a subsidiary of KFx, is the industry leader in neural network based IT applications for the power generation market. The NeuSIGHT suite of combustion optimization applications from Pegasus reduce emissions and increase efficiency of fossil fueled electric generation units. The Pegasus Technologies web address is www.pegasustec.com .

SOURCE: Cleco Corporation

No posts to display