Texas Consortium Buys Plant for CBM Water Processing

RG Global, which owns CFS Technology used for processing discharge water for Coal Bed Methane (CBM) mining, executed a memorandum of understanding with a Texas Consortium (FBE), according to a Dec. 23 press release.

Under the terms, the consoritum has agreed to purchase RG Global's Wyoming Plant that utilizes CFS Technology for processing discharge water for CBM mining. RG Global, upon the purchase of the plant, will grant a license to the consortium to use the CFS Technology to operate the plant, as well as licensing all of the U.S. rights under the CFS Technology. The consortium also will manufacture and operate all future plants in the United States.

Grant King, RG Global's chief executive officer and president, commented, "We are transitioning from a build/own/operate business model for our CBM water treatment process to that of a strategic licensing and marketing company. RG Global will move from owning and operating plants for CBM water treatment to a marketing and sales role with FBE in the U.S. RG Global expects to roll out this new business model on a global basis that will permit RG Global to utilize its CFS Technology in a partnership role with some of the largest companies in the industry."

King noted that under the new business plan, his company expects to generate revenues without the heavy cash requirements that have inhibited the company's growth. With this new direction, RG Global will be able to focus its efforts on advanced research and development for strategic acquisitions of both technology and synergistic partners.

The CFS Technology provides a sustainable solution that solves CBM discharge problems, resulting in clean water that eliminates the burden of clean-up operations on future generations. It reduces the environmental impact of discharging CBM water directly into local streams and rivers at a significant savings compared to other technologies currently utilized in this industry, according to the press release.

FBE is a consortium, comprised of three Texas-based companies, that specializes in financing, engineering, and building facilities for the petroleum industry. As its U.S. partner, FBE will allow RG Global to focus on the sales and marketing of its CFS Technology, while becoming a technological leader for the reclamation of CBM discharge water

CBM is one of the fastest growing sectors in the field of alternative energy. CBM gas is processed though the removal of trapped gas located between the coal and water table. The gas is pumped out at a very low operating cost, with a very high purity level. Estimates show that there are over 700 trillion cubic feet of CBM gas in the US. To date, a major factor that has restricted CBM mining has been the disposal or processing of the discharge water that is produced as a byproduct of the CBM gas extraction. By 2010, experts expect there to be more than 50,000 wells in Wyoming alone. Each well produces an average of 6.2 million gallons of discharge water per year.