Environmental Clean Technologies (ECT) (ASX:ESI) has walked away from a joint venture deal that had been proposed for more than two years.
The company on Tuesday announced the lapsing of a joint venture agreement with Tincom and Vietnamese parent Thang Long Investment and Commercial for a project involving ECT's Coldry technology.
Coldry is a process developed by ECT to treat certain types of coal so they emit less CO2 when burned than the raw form.
ESI shares fell 21.74% to $0.018 following the announcement on Tuesday.
The planned JV to establish a Coldry manufacturing plant in Victoria had missed a milestone deadline and two conditions were not satisfied, according to ECT.
Acting chairman John Hutchinson said while the company had the option to extend the deadline, it decided not to take it.
“The directors of ECT no longer have confidence in Tincom's ability to deliver funding,” he said.
“It is now over two years since we commenced discussions with Tincom and progress towards establishment of the project has been unacceptably slow.”
The company will instead pursue other opportunities to commercialise Coldry - including a possible deal with China Datang Overseas Investment, which has agreed to test Coldry in one of their power stations.
ECT plans to still move ahead with the Victorian project, and plans to engage Arup to produce the design for tender, Hutchinson said.