Dagang will use one of its two 330MW power units to demonstrate the capture of CO2 from its flue gas stream and then transport the CO2 for Geosequestration and Enhanced Oil Recovery.

The project will show the development of a "CO2 Capture Project" that can be profiled internationally as a sustainable Climate Change project that will greatly benefit China. The parties also agreed to seek support and endorsement from all levels of Government to ensure the project becomes a leading reference site that will set new benchmarks for the validation and effectiveness of CCS technologies.

Murray Bailey CEO of EESTech said, "This is an exciting opportunity for EESTech, the development of this CO2 capture project will be the largest of its kind in China, demonstrating environmental benefits."

The technology itself is from Canadian based HTC Purenergy. HTC and the University of Regina in Saskatchewan, Canada have been developing carbon capture and storage (CCS) technology for the past 18 years and are considered world leaders in terms of their carbon management technology. EESTech own the rights to commercialize HTC's CCS technology throughout Asia Pacific, India and China.

EESTech also owns the Australian developed Hybrid Coalmine Gas Technology (HCGT), which can be integrated with HTC's 'CCS' technology. A standard HCGT utilises waste coal and methane to produce cost effective clean coal energy, significantly reducing the cost of carbon capture and as a result of the waste to energy process, generate up to 1 million tons of carbon abatement credits per year.

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