The company announced it has signed a memorandum of understanding with U.S. corporation EESTech Inc. (OTCBB:EESH) to establish a Carbon Capture and Storage project using EESTech's carbon management and storage technology and DaGang's 330-megawatt power units to demonstrate the capture of carbon dioxide from its flue gas stream.

The carbon dioxide then will be transported for geosequestration and enhanced oil recovery.

EESTech officials said in a statement that this likely will be one of the largest projects of its kind in China. EESTech acquired the rights to the technology from a Canadian firm to be used in Asia.