Synthesis Energy Systems, Inc. Heralds New Milestone Achievement at Zibo City Industrial Syngas Facility, First of Three for ...
January 19 2016 - 08:00AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global energy
and gasification technology company whose advanced SES Gasification
Technology (SGT) can produce clean, low-cost syngas for power
generation, industrial fuel gas, chemicals and transportation
fuels, replacing expensive natural gas, LNG and crude oil based
energy, reports a progress update related to the first of three
previously announced industrial syngas gasification facilities for
Aluminum Corporation of China Limited (CHALCO) (NYSE:ACH)
(HKEx:2600) (SSE:601600). The project located in Zibo City,
Shandong Province, China and licensed to CHALCO through SES’s
Tianwo-SES Joint Venture has completed a planned 90-day continuous
full-load operation test run successfully supplying stable and
reliable industrial syngas to the CHALCO aluminum manufacturing
facility. Tianwo-SES provided the SGT technology design and
proprietary gasification equipment to the project for the two SGT
systems now in operation.
“We commend our Tianwo-SES team’s continued
progress in achieving excellent operational results from the two
SES SGT gasification systems at Zibo City. Tianwo-SES and its
construction partner, the Innovative Coal Chemical Design
Institute, have achieved impressive project implementation
milestones at all three CHALCO projects based on the speed of
design, construction, commissioning, and now with the first
project’s stable operation at full capacity. This 90-day continuous
full-load operation milestone was a necessary step for the final
turnover of the facility to CHALCO from ICCDI,” said DeLome Fair,
Senior Vice President of SES and President of SES Technologies,
LLC. “Our onsite ZZ team along with our U.S.-based technical staff
have closely monitored the performance of our technology through
the entire period. We are very pleased with the excellent
gasification performance, syngas quality and high conversion
efficiency at the facility. The low-cost, clean syngas produced by
our SGT gasification systems can provide cost savings at this one
facility alone of approximately $50,000 per day, versus expensive
natural gas.”
A team of SES’s technical and operating staff
from SES’s Zao Zhuang Joint Venture Plant (ZZ) provided the onsite
technical and operating guidance to Tianwo-SES for the Zibo City
project beginning at the commissioning phase in summer 2015. While
this latest milestone marked the completion of a long full-load
test run, the Zibo City project has produced syngas used by CHALCO
since August, 2015.
Ms. Fair continued: “Additionally, the second
CHALCO facility, the Huaxin plant in Xing County, Shanxi Province,
is progressing well in its commission and startup phase. Further,
construction by ICCDI on the third and largest CHALCO project, in
Henan Province, is proceeding on track. Some of the early
commission work, such as refractory curing of the four gasifiers,
has been completed, and the Henan project is expected to enter into
full commissioning this quarter.”
SES’s technical and operating team from ZZ
continues to work closely with the Tianwo-SES China JV and ICCDI to
support the startup and final acceptance of all three licensed
projects with a combined total seven SGT systems. When the three
coal-to-gas turnkey projects for CHALCO enter commercial operation,
the installed base for SGT will expand from five to 12 gasification
systems in operation in China.
“Our ability to build low-cost, high performance
gasification plants to manufacture clean, economical syngas for
industrial fuel to replace expensive imported natural gas is
gaining traction in China. Tianwo-SES reports a growing pipeline of
similar natural-gas replacement projects due to the key attributes
of our technology, which we believe is the future of coal
gasification,” added Ms. Fair.
Total construction order commitments of
approximately 650 million Yuan (approximately $98.7 million) for
the three projects were announced in December 2014 between Aluminum
Corporation of China, China's largest alumina and primary aluminum
producer, and Innovative Coal Chemical Design Institute (Shanghai)
Co., Ltd. (ICCDI). ICCDI is the general contractor supplying all
the engineering, construction and balance of plant equipment for
the three projects. The total order value for these projects to
Tianwo-SES for technology and equipment supply from ICCDI, a
subsidiary of Suzhou Thvow Technology Co., Ltd. (STT) (Shenzhen
listing code:002564), is expected to be approximately 140.3 million
Yuan (approximately $21.3 million). Tianwo-SES Clean Energy
Technologies Co., Ltd. (Tianwo-SES) is SES's joint venture with
STT.
About Synthesis Energy Systems,
Inc.Synthesis Energy Systems (SES) is a Houston-based
technology company focused on bringing clean high-value energy to
developing countries from low-cost and low-grade coal and biomass
through its proprietary gasification technology based upon U-Gas®,
licensed from the Gas Technology Institute. The SES Gasification
Technology enables Growth With Blue Skies, and greater fuel
flexibility for both large-scale and efficient small- to
medium-scale operations close to fuel sources. Fuel sources include
low-rank, low-cost high ash, high moisture coals, which are
significantly cheaper than higher grade coals, many coal waste
products, and biomass feedstocks. For more information, please
visit: www.synthesisenergy.com.
SES 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 fact are forward-looking statements. Forward-looking
statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those
projected. Among those risks, trends and uncertainties are the
completion of the expansion and repurposing of our ZZ Joint Venture
plant to produce acetic acid and propionic acid; our ability to
successfully expand the ZZ joint venture through our partnership
with Saikong; the ability of our project with Yima to produce
earnings and pay dividends; our ability to develop and expand
business of the Tianwo-SES joint venture in the joint venture
territory; our ability to successfully partner our technology
business; our ability to develop our power business unit and
marketing arrangement with GE and our other business verticals,
including DRI steel, through our marketing arrangement with Midrex
Technologies, and renewables; our ability to successfully develop
the SES licensing business; events or circumstances which result in
an impairment of assets, including, but not limited to, at our ZZ
Joint Venture; our ability to reduce operating costs; our ability
to make distributions and repatriate earnings from our Chinese
operations; our limited history, and viability of our technology;
commodity prices, including in particular methanol, and the
availability and terms of financing; our ability to obtain the
necessary approvals and permits for future projects; our ability to
raise additional capital, if any, and our ability to estimate the
sufficiency of existing capital resources; the sufficiency of
internal controls and procedures; and our results of operations in
countries outside of the U.S., where we are continuing to pursue
and develop projects. Although SES believes that in making such
forward-looking statements our 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 by us. SES cannot assure
you that the assumptions upon which these statements are based will
prove to have been correct.
Contact:
MDC GroupInvestor Relations:David CastanedaArsen
Mugurdumov414.351.9758IR@synthesisenergy.com
Media Relations:Susan
Roush747.222.7012PR@synthesisenergy.com
Aluminum Corporation of ... (NYSE:ACH)
Historical Stock Chart
From Feb 2024 to Mar 2024
Aluminum Corporation of ... (NYSE:ACH)
Historical Stock Chart
From Mar 2023 to Mar 2024