Synthesis Energy Systems Demonstrates Stable and Efficient Operations at Hai
Hua on Lignite Coal
HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Synthesis Energy Systems, Inc.
("SES") (Nasdaq: SYMX), a global energy and gasification technology company,
announced today that its 95%-owned Hai Hua joint venture project in Shandong
Province, China, has completed a successful commercial-scale demonstration
using lignite coal from the Inner Mongolia region of China. SES demonstrated
its ability to efficiently process lignite coal in response to the significant
interest it is receiving from various parties in China, Australia and India
that wish to build coal to energy projects which can take advantage of the
lower costs associated with low rank coals.
Lignite and sub-bituminous coals are abundant in many regions of the world and
are typically the lowest cost coals to mine. In China for example, these
lignite coals can cost up to 75% less on a thermal basis than more widely used
bituminous coals. This savings can be translated into compelling economics for
coal based energy and chemical projects.
"This was an important demonstration that further validates the U-GAS®
technology's capability to operate efficiently on lignite coals which can be
quite difficult for most other gasification technologies. Inner Mongolia
holds China's largest coal reserves and is China's largest coal producer and
is rich in lignite and sub-bituminous coals, offering tremendous growth
opportunities for companies that can efficiently process this fuel," stated
SES' President and CEO, Robert Rigdon. "We were able to host multiple parties
through the plant during this two week demonstration test. I believe that
giving our future partners and customers the ability to walk through our plant
and see first-hand for themselves how well we can operate on this fuel gives
them a lot of confidence. The common denominator amongst the visiting
companies has been their interest in finding an efficient way to unlock the
value of low rank coals to make high value products such as substitute natural
gas, gasoline, power, hydrogen and steam for industrial applications," Rigdon
added.
Francis Lau, SES' Chief Technology Officer, stated, "We have been running with
the lignite fuel for the past two weeks and during this entire demonstration
our plant continued to supply specified quality syngas to Hai Hua without
interruptions. Our gasifier operated very well on the lignite, achieving a
high 96% conversion efficiency and without producing undesirable tars and
oils. U-GAS® technology has significant pilot unit experience operating on
lignite coals; however, this successful commercial-scale demonstration of
lignite operation in a U-GAS® gasifier is a major milestone for the
technology. I also believe that this test clearly demonstrates that U-GAS® is
a uniquely flexible, reliable and high performance coal gasification system
which will give project owners confidence over the life of their projects."
Overall plant availability for the last quarter to date is over 95% and has
met the Hai Hua syngas demand and quality requirements over 98% of the time.
Since its commissioning, the Hai Hua Joint venture has demonstrated its
ability to efficiently gasify a wide range of fuels including coal washing
wastes with an ash content of up to 45%, a variety of run of mine bituminous
coals, a high ash sub-bituminous coal from the Yima Coal Industry Group, and
now lignite from the Baiyinhua region of Inner Mongolia.
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® 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®
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® 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 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 business strategy and measures
to implement strategy, competitive strength, goals, expansion and growth of
the business and operations, plant expansion and growth of the quantity of
methanol 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. Among those risks, trends
and uncertainties are our early stage of development, our estimate of the
sufficiency of existing capital sources, our ability to raise additional
capital to fund cash requirements for future operations, our ability to reduce
operating costs, the limited history and viability of our technology, the
effect of the current international financial crisis on our business,
commodity prices and the availability and terms of financing opportunities,
our results of operations in foreign countries and our ability to diversify,
our ability to maintain production from our first plant in the Hai Hua joint
venture project, approvals and permits for our Yima project and other future
projects, the estimated timetables for achieving mechanical completion and
commencing commercial operations for the Yima project, and the sufficiency of
internal controls and procedures. 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.
Ann Tanabe, Vice President of Investor Relations of Synthesis Energy Systems,
Inc., +1-713-579-0600, Ann.tanabe@synthesisenergy.com
