CONSOL Energy Announces Investment in Coal-to-Products Space
CANONSBURG, Pa., Jan. 8, 2020 /PRNewswire/ -- CONSOL Energy Inc. (NYSE: CEIX) announced today that it has made an initial investment in the coal-to-products space by acquiring a 25% equity interest in CFOAM Corp., a newly-formed US-based holding company whose wholly-owned subsidiary, CFOAM LLC, has manufacturing facilities in Triadelphia, West Virginia. CFOAM Limited, an ASX-listed company, owns the remaining 75% of CFOAM Corp. CFOAM LLC manufactures high-performance carbon foam products from coal and focuses on meeting demand for high-grade materials in the industrial, aerospace, military and commercial product markets.
"This is our first major step in the coal-to-products area, which leverages certain attractive properties of coal but with significantly lower emissions and greater value uplift potential than conventional combustion applications. These products not only provide a high-margin revenue stream but also provide an intriguing new opportunity to utilize the vast resource base that our country is endowed with" said Jimmy Brock, President and Chief Executive Officer of CONSOL Energy Inc. "Consistent with our capital allocation process, the CFOAM investment is part of CONSOL's measured investment bucket earmarked for innovative and alternative uses of coal as a pathway for diversification. Today, CFOAM products are used or being developed for a wide range of markets including composite tooling for the aerospace sector, as well as energy absorbing, structural, and defense applications. We estimate that the total addressable market ("TAM") for such products is over $15 billion annually."
"We are very excited to partner with CONSOL Energy. This investment and collaboration will offer the technical support and business acumen CONSOL Energy has demonstrated for decades and will enable CFOAM to advance as a reliable partner in the material science industry" said Flemming Bjoernslev, President & CEO of CFOAM LLC.
Some of the major highlights of the transaction include:
With the completion of this transaction, CONSOL Energy is now pursuing alternative uses of coal in the following different areas:
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg-based producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal. It owns and operates some of the most productive longwall mining operations in the Northern Appalachian Basin. Our flagship operation is the Pennsylvania Mining Complex, which has the capacity to produce approximately 28.5 million tons of coal per year and is comprised of 3 large-scale underground mines: Bailey, Enlow Fork, and Harvey. The company also owns and operates the CONSOL Marine Terminal, which is located in the port of Baltimore and has a throughput capacity of approximately 15 million tons per year. In addition to the ~698 million reserve tons associated with the Pennsylvania Mining Complex, the company also controls approximately 1.6 billion tons of greenfield thermal and metallurgical coal reserves located in the major coal-producing basins of the eastern United States. Additional information regarding CONSOL Energy may be found at www.consolenergy.com.
About CFOAM Limited
CFOAM® products are an inorganic carbon material that is manufactured from coal, pitch or lignin feedstock. CFOAM® products manufactured in this process have a rigid foam structure, similar in appearance to pumice stone, but with entirely different properties. CFOAM® products are currently used across a wide variety of markets including composite tooling for the aerospace sector, energy absorbing applications and defense applications. Additional markets such as automotive applications for energy absorption and fire resistance are also expected to become significant to the CFOAM over time.
CFOAM® products were developed to meet the growing demand for ultra-high-end performance engineering materials in the industrial, aerospace, military and commercial product markets.
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SOURCE CONSOL Energy Inc.