Carbon Energy Limited announced key milestone in the development of its China Joint Venture with Beijing JinHong Investment Co. Ltd. having achieved formal registration of the joint venture company in China by the Chinese corporate registry. The JV is the foundation of Carbon Energy's strategy to commercialise its UCG technology globally with a particular focus on the China market. The vast Chinese market is a logical target for Carbon Energy as China is estimated to consume approximately half of global coal consumption. The size of the market together with a strong demand for lower emission coal technologies, makes China a compelling opportunity for Carbon Energy's keyseam technology. The achievement of registration triggers the formal signing of the Technology Licensing and Technical Services Agreements. Under the JV Agreement JinHong will contribute USD 30 million towards developing a commercial demonstration project upon the JV meeting certain milestones. The JV will have a non-exclusive license to use Carbon Energy's keyseam technology up until the successful commissioning of the Demonstration Project but can sub-license keyseam technology in China during the non-exclusive period. The license will become exclusive (within the People's Republic of China) after the successful commissioning of the Demonstration Project. Carbon Energy will provide technical and design services support, supervision and training for all JV projects under the Technical Services Agreement.