Reported by Staff

Denver-based Evergreen Energy’s(EEE) stock rose Thursday on news that the company would spin off its K-Fuel unit. The company signed a tentative agreement to sell its proprietary K-Fuel “clean coal” technology to a newly formed subsidiary called Clean Coal China. The expectation is that the coalition of Chinese companies will invest in the subsidiary.

After due diligence and negotiations, the deal is expected to close in Q2. The identity of the Chinese investors and the terms of the agreement will not be disclosed until then, according to Evergreen’s CEO, Tom Stoner. He said Clean Coal China will be jointly owned by Evergreen and the Chinese investors, and that a K-Fuel plant will be built in Inner Mongolia, China, to upgrade a coal mining process.

The K-Fuel process centers on using heat and pressure to remove pollutants and moisture from low-grad goal.

Evergreen’s CEO said the move will enable his company to focus on its GreenCert technology, developed by its C-Lock Technology subsidiary, which is essentially a GHG emissions tracking and monitoring software system, aimed at the power and agriculture industries. IBM and the huge Taiwan-based electronics manufacturer, FoxConn, are working with Evergreen on the project.

Evergreen is also seeking to move its Buckeye Industrial Mining coal operation in Ohio. A deal to sell the mining company fell through in September.