CALGARY — Immersive Media Corp., a Calgary-based video technology company, says it has struck a strategic deal with Future Fuels LLC to invest US$5 million in start up money for Future Power PA Inc., a subsidiary of Future Fuels that's developing ways to produce electricity using clean coal technology.

Future Power is a Pennsylvania-based joint venture that plans to generate electricity using so-called Integrated Gasification Combined Cycle, or IGCC, clean coal technology for a northeastern U.S. power grid that has 51 million customers.

In the investment, announced Monday, Immersive Media will provide a $5 million loan that can eventually be converted into 49 per cent stake in Future Power.

"The United States holds the largest known reserves of coal in the world and we are pleased to utilize modern technologies like IGCC to enable that resource to be brought to market in a manner far more environmentally friendly than current and past coal based solutions," said David Anderson, chief financial officer of Immersive Media Corp.

"We see great potential for our shareholders based on critical factors such as the quality of coal that Future Power has secured, the excellent human resources that Future Power has retained, and the large demand for electricity in the northeastern portion of the United States."

Immersive, which provides interactive video hardware, software and production services, said Monday's announcement is the second clean-technology investment for the company.

Although the Future Power joint venture is a departure from the Calgary company's core business, it represents a promising investment opportunity, Immersive said.