Headwaters Energy Services’ subsidiary Covol Engineered Fuels (CEF) is broadening its role as an energy producer and has entered the coal production business. The company is developing plants to produce washed coal from formerly mined, waste coal resources. Our cleaned coal is being sold into traditional domestic steam and metallurgical coal markets as well as being exported to consumers in other countries.

CEF processes dirty, low value or marginal coal feedstock into a marketable fuel that can be consumed without problems. Our coal is consistent, with little variation in BTU, ash, moisture, sulfur and mercury content, and is comparable in quality to the coal produced by traditional, nearby mines.

In addition to generating earnings for Headwaters’ stockholders, CEF’s clean coal production activities have three very positive environmental and economic benefits:

• Lowering emissions of coal-burning power plants
• Cleaning-up/reclaiming waste coal gob piles, impoundments and other storage sites
• Economically utilizing low quality carbon resources