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HOUSTON, Aug. 18 /PRNewswire-FirstCall/ -- Synthesis Energy Systems, Inc.
("SES") (Nasdaq: SYMX) has announced that its 95%-owned joint venture project
with Shandong Hai Hua Coal & Chemical Company Ltd. ("SHHCCC") obtained key
government approvals for the expansion ("Phase II") of its existing Hai Hua
project in Zaozhuang City, Shandong Province, China. The Phase II expansion
will result in additional production capacity of approximately 17,000 standard
cubic meters per hour ("scm/hr") (a 15 MW equivalent) of high grade syngas at
this site. After completion of the expansion, the plant will have a design
capacity of approximately 45,000 scm/hr (a 40 MW equivalent). The project
approvals were issued by divisions of the State Environmental Protection
Administration and the National Development and Reform Commission.
With a workforce of over 150 employees, the Hai Hua Plant is utilizing
SES' global, exclusively licensed U-GAS(R) technology to convert local
low-rank coal, with approximately 40% ash content, into high grade syngas.
The additional capacity from the Phase II expansion is expected to support
approximately 100,000 tonnes/year of methanol production as well as other gas
demands in the Xuecheng Industrial Park. SES is currently negotiating
agreements, including ownership in the methanol facility, with SHHCCC as well
as other customers for the additional syngas capacity. SES expects to finalize
project terms and begin work on the Phase II expansion later this year.
"This milestone underscores SES' strategy in China of focusing on key
strategic locations where we can grow our business to meet increasing demand
for syngas and other coal chemical products. With its abundant coal resources
in the heart of China's rapidly growing chemical production base, Southern
Shandong is a great location for SES to be expanding our gasification
business," said Don Bunnell, President and CEO of Asia Pacific.
"We are extremely pleased with the progress that we have made on our first
U-GAS(R) plant. Moving forward with this expansion evidences the confidence
of our partner and governmental officials in the capabilities of SES and our
technology," stated Tim Vail, President and CEO of SES. This expansion also
demonstrates a key U-GAS(R) advantage, the modular nature of the technology
which will enable us to increase the capacity of the Zaozhuang Plant by more
than 60 percent, a goal that was incorporated into our project plans from
initial conception," concluded Vail.
About Synthesis Energy Systems, Inc.
SES is an energy and technology company that builds, owns and operates
coal gasification plants that utilize its proprietary U-GAS(R) fluidized bed
gasification technology to convert low rank coal and coal wastes into higher
value energy products, such as transportation fuel and ammonia. The U-GAS(R)
technology, which SES licenses from the Gas Technology Institute, gasifies
coal without many of the harmful emissions normally associated with coal
combustion plants. The primary advantages of U-GAS(R) relative to other
gasification technologies are (a) greater fuel flexibility provided by our
ability to use all ranks of coal (including low rank, high ash and high
moisture coals, which are significantly cheaper than higher grade coals), many
coal waste products and biomass feed stocks; and (b) our ability to operate
efficiently on a smaller scale, which enables us to construct plants more
quickly, at a lower capital cost, and, in many cases, in closer proximity to
coal sources. SES currently has offices in Houston, Texas and Shanghai, China.
For more information on SES, visit http://www.synthesisenergy.com or call
(713) 579-0600.
Forward Looking Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical facts, included in this press release that
address activities, events or developments that SES expects or anticipates
will or may occur in the future, including such things as future capital
expenditures (including the amount and nature thereof), business strategy and
measures to implement strategy, competitive strength, goals, expansions and
growth of the Hai Hua project and the Company's business and operations,
timelines for construction projects, quantity of syngas production, references
to future success, reference to intentions as to future matters and other such
matters are forward-looking statements. These statements are based on certain
assumptions and analyses made by SES in light of its experience and its
perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. Forward- looking statements are subject to certain risks,
trends and uncertainties that could cause actual results to differ materially
from those projected. These include, but are not limited to, risks and
uncertainties associated with our early stage of development, the success of
our development projects with industry partners, the limited history and
viability of our technology, our results of operation in foreign countries,
our ability to maintain production from our Hai Hua plant, our ability to
negotiate acceptable terms with SHHCCC for additional production and the
sufficiency of our internal controls. Although SES believes that in making
such forward-looking statements its expectations are based upon reasonable
assumptions, such statements may be influenced by factors that could cause
actual outcomes and results to be materially different from those projected.
SES cannot assure you that the assumptions upon which these statements are
based will prove to have been correct. SES has no intention, and disclaim any
obligation, to update or revise any forward-looking statements, whether as a
result of new information, future results or otherwise.
SOURCE Synthesis Energy Systems, Inc.
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