Next Fuel, Inc. (NXFI) (NXFI), which develops and commercializes "clean" energy and related environmental technologies, today announced the receipt of initial revenues from the Coal-to-Gas ("CTG") License Agreement ("the Agreement") signed with its strategic partner in China, Future Fuel, Ltd., earlier this year. The revenue of $160,000 consisted of License Fees and payments for the initial testing units completed to date in northern China. Based on the Agreement, additional payments are expected upon the production of biogenically generated natural gas (methane) from these units.
The Company anticipates drilling additional gas generating units later this year, and the parties to the Agreement are evaluating appropriate locations at this time.
Next Fuel's patent-pending CTG technology converts low-grade coal, such as lignite, into clean-burning natural gas through the introduction of nutrients, via a low-pressure pumping system, to the wide range of microorganisms that naturally exist in coal deposits. The proprietary nutrients stimulate the microorganisms, which in turn consume certain carbon-containing compounds in the coal and "exhale" biogenic natural gas as a byproduct.
"We are very pleased to achieve this revenue milestone in our first commercial CTG project in China and anticipate a lengthy and prosperous relationship with our strategic partner, Future Fuel," stated Robert Craig, Chairman and Chief Executive Officer of Next Fuel, Inc. "The injection of nutrients is currently underway, and we look forward to the generation of commercial quantities of methane gas from the project later this year."
About Next Fuel, Inc.
Next Fuel, Inc. develops and commercializes innovative technologies associated with renewable energy, including unconventional natural gas production from lower-grade coal, lignite, oil shale and other carbonaceous deposits. The Company is currently in the process of commercializing its Coal-to-Gas (CTG) technology with strategic international partners.
Although the Company's CTG technology is the only product with near-term revenue potential, the Company has also acquired, or is developing, advanced technologies associated with (1) environmental challenges associated with the treatment of energy-related waste water, (2) processes for carbon dioxide conversion and carbon loop closure, and (3) biological fuel cells. In collaboration with leading research institutes, Next Fuel, Inc. is focused upon the identification, development and/or acquisition of a portfolio of growth opportunities with compelling market potential that are consistent with clean energy and environmental stewardship.
This announcement contains forward-looking statements. including statements regarding the timing and success of future products, future contracts and future business to be conducted by the Company, all of which involve risks and uncertainties. You can identify these statements by forward-looking words such as "might," "expect," "plan," "anticipate," "contemplate," "believe," "estimate," "intends," "look forward" and "continue" or similar words. Actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the ability of the Company and its collaborating partners to successfully develop and commercialize new technologies, the results of CTG field tests, receptiveness of the market to the Company's technologies and services, negotiations between the Company and its Chinese partners, the ability of the Company's Chinese partners to enter into and implement agreements with the owners of coal, lignite and other similar deposits, and other factors discussed in the Company's filings with the Securities and Exchange Commission, including the Risk Factors described in the Company's most recent Annual Report on Form 10-K as updated in subsequent Quarterly Reports on Form 10-Q. All forward-looking statements included herein attributable to us, or any person acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. All forward-looking statements are based on information available to the Company as of the date of this news release, and the Company assumes no obligation to update such statements.