Axens and Headwaters Incorporated have signed an agreement to form a strategic alliance to provide a single-source solution for producing ultra-clean fuels by direct coal liquefaction (DCL) alone or in combination with refinery residues or biomass.

Headwaters Incorporated, a diversified growth company dedicated to improving sustainability by transforming underutilized resources into valuable products and Axens, a refining, petrochemical and natural gas market focused company offering products including processes, catalysts, adsorbents and equipment, create a strategic alliance around their Direct Coal Liquefaction (“DCL”) technologies. The two companies will combine their technologies and licensing activities for “Coal-To-Liquids” (“CTL”) projects world-wide. The new “Alliance DCL”, expects to provide a single-source solution for producing ultra-clean transportation fuels from coal – whether alone or in combination with other low-cost or renewable feedstocks, such as biomass and refinery residues.

Headwaters brings its slurry catalyst technology and its extensive “Coal-To-Liquids” research facilities. Axens contributes its ebullated-bed H-Coal® Process and proprietary catalyst. Both evolved from a common background and DCL technologies developed by Hydrocarbon Research, Inc. (“HRI”), which were commercialized with support from the U.S. Department of Energy and industrial clients. Building on decades of experiences in DCL and a database on a wide range of coals, both companies have continued to increase liquid yields, improve energy efficiency, lower production costs and reduce the environmental footprint (CO2 emissions and water consumption).

Alliance DCL will market the technologies and anticipates offering project-specific services, from feedstock characterization, pilot plant evaluation, feasibility studies and engineering design through plant start-up and ongoing technical support. Axens will also provide the coal liquids upgrading technologies necessary to achieve finished fuel specifications. Both companies provided technology packages and basic engineering contributing to the successful construction and start-up of the first commercial direct coal liquefaction plant in China in December 2008. Several new DCL projects are currently in development by the alliance.