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Strategic Direction

 

With the Queensland Government's environmental review completed and the Independent Scientific Panel (ISP) recommendations successfully accomplished and acknowledged by Queensland's Chief Scientist, Carbon Energy is marketing its achievements on a global stage. Our key priorities right now are focussed towards China:

China
 
The growth of energy demand and the need to reduce pollution from current coal fired operations are seen as opportunities for developing a successful keyseam project in China. 
 
Our experience has shown the future development of keyseam requires: supportive local governments, dedicated investors, a market demand for low cost energy and strong environment and safety standards.
 
The economics of coal and its uses in China is a complex mix of factors:future population growth and prosperity, rising standard of living, job creation, competitive energy differentials transport costs, and environmental impacts, just to name a few.
 
With China and the world's hunger for energy growing, unlocking new energy sources that are commercially and environmentally sustainable is a priority. Coal is predicted to remain a significant source of energy for the world given its widespread availability and low cost. keyseam is able to maximise the energy extracted through syngas from coal, while ensuring a small environmental impact and footprint. 
 
It is clear that a successful foreign investment in China needs to have national Government acceptance, regional and local Government support and capable private investment partners.
 
China is currently offering a supportive regulatory framework for UCG and is actively pursuing UCG technologies to promote cleaner coal technologies in its next Five Year Plan, which commenced in March 2016.
 
This decision recognises the significance coal continues to play in providing low cost energy and at the same time matches China's strategic imperative to look for cleaner alternatives to traditional coal mining and consumption.
 
Additionally, Carbon Energy has been focusing its business development efforts on downstream industrial users looking to reduce input costs of their manufacturing feedstocks.

The JinHong Joint Venture
 
In November 2015 Carbon Energy shareholders approved a joint venture (JV) with its cornerstone investor Kam Lung to develop a China based company focused on exclusively building a gas business in the region ands licencing the Company's keyseam technology throughout China.
 
The establishment of the JinHong JV introduces a transformational shift for Carbon Energy and acknowledges a long term future beyond Australia.
 
The JV provides the Company with an active local partner and an investor who can navigate business practices and cultural nuances, as well as establish relationships with the various levels of Government and business in China.