Apr 10 2013
Hainan Dongfang Henghe Energy Development Company Ltd., ("Henghe"), based in Hainan Province, China, has selected Synthesis Energy Systems, Inc. ("SES) (Nasdaq: SYMX) for a large scale, 10 billion RMB (US$1.6 billion) coal waste to synthetic natural gas ("SNG") project in Jiangxi Province, China.
The Jiangxi Province project will be designed to convert coal mining wastes into two billion normal cubic meters of SNG per year, and is expected to be built in multiple phases. Both companies have agreed to work together exclusively for this project over the next 12 months to complete commercial agreements for licensing SES' technology as well as equipment supply and service agreements. During this period, Henghe will manage development of the project including obtaining necessary government approvals.
Ms. Li Jinmei, chairwoman of Henghe, stated, "We have confidence in SES' technology as we see SES' Yima project begin operations. We believe the SES technology is a good technology for China and is well suited for our Jiangxi project because of its ability to cleanly and cost effectively convert our low quality coal and waste coal for SNG production. We look forward to advancing this project with SES and beginning construction sometime in 2014."
"Our track record of technology success in China, buoyed by the recent start-up of our Yima Joint Venture plant, has resulted in a significant uptick in inquiries from industrial companies and project developers looking to utilize our coal gasification technology," said Robert Rigdon , president and CEO of SES. "The Jiangxi project with Henghe is an ideal large-scale commercial application of our technology for the conversion of very low quality and low cost fuels into high-value products like synthetic natural gas. We expect the project to require multiple SES gasifier systems and we look forward to finalizing the commercial arrangements for our technology and equipment."