K-Fuel is a registered trademark of Evergreen Energy Inc. (formerly KFx). The K-Fuel process takes raw, high-moisture, low-heat content coal and uses temperature and pressure to produce a lower-moisture, higher-heat, lower-emissions content coal. It is reported by Evergreen that the beneficiated coal has a lower emissions of nitrous oxide (NOx), sulfur dioxide (SO2), mercury, and carbon dioxide (CO2). Beneficiated coal may qualify for Section 45 Tax Credits under the American Job Creation Act, signed in 2004 before the November elections. The rules surrounding refined coal and qualifying for the Section 45 Tax Credit are: The product needs to have a reasonable expectation that it will be used for the purpose of producing steam; it reduces at least 20% of the emissions of (a) NOx and (b) either SO2 or mercury released when burning the refined coal as compared to the feedstock coal; it increases by at least 50% the market value of the refined coal, as compared to the value of the feedstock coal; and the facility must be placed in service after October 22, 2004 and before January 1, 2009. There is a 10-year period for the tax credits beginning on the date the facility is placed in service. The credit was $5.679 per ton in 2006, indexed to inflation.

Contributed By:

Thomas Shewski
Owner
High Energy Services