David A. Schwedel (J. Albert Diaz)
Coalview Ltd. LLC of Coral Gables has acquired the assets of Orlando-based KeLa Energy LLC for an undisclosed amount.
KeLa Energy is a research company that develops environmentally friendly coal products.
Terms of the acquisition include the conversion of loans along with equity contributions made to KeLa by Miami energy technology investor David Schwedel, Coalview’s founder and executive director. Coalview also assumes certain liabilities through a new subsidiary, Coalview KeLa LLC.
The new company will be 90 percent owned by Coalview, and KeLa Energy holds the minority interest.
“This acquisition continues to strengthen our positioning as a fully integrated coal technology leader,” Schwedel said. “KeLa’s patent portfolio and other assets will enable us to custom blend fuel products for customer’s specific requests.
The acquisition closed Monday. Schwedel said he was bound by a confidentiality clause not to reveal the price of the acquisition.
“Coalview will continue to focus on our goals of allowing coal to become a more environmentally stable fuel choice,” Schwedel said.
Coalview president and chief executive officer Roger Fish said KeLa’s technology provides a water-resistant and less polluting coal product.
“This engineered product has shown significant emission reductions through Environmental Protection Agency methodology testing,” Fish said.
Fuel trials comparing KeLa’s product to similar coal have shown a 35 percent to 41 percent reduction in sulfur oxides. There also have been reductions of up to 41 percent in nitrous oxides, 5 percent in carbon dioxide and 15 percent in volatile organic compounds.
Coalview KeLa’s goal is to reduce emissions even further, Fish said.
KeLa products work by mixing fine coal with biomass such as switch grass and plastics. This makes it easier to transport, cleaner to burn and drier, which improves its combustibility.
Schwedel said KeLa’s operations will move next week and be consolidated into Coalview’s laboratory in Somerset, Pa.
Coalview is North America’s leading fully integrated coal technology and fine coal recovery company.
Schwedel recently completed $42 million in project financing for a Coalview subsidiary in December.