UPDATE -- Synthesis Energy Systems, Inc., Xuecheng Energy, and Xuecheng District, ZaoZhuang City, Shandong Province, Governme...
October 19 2016 - 10:02AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), the global
leader in low cost, high performance clean energy gasification
technology, today announced that SES, Shandong Weijiao Xuecheng
Energy Co. Ltd. (Xuecheng Energy), and the local government of
Xuecheng District, ZaoZhuang City, Shandong Province signed a
Moving Project Cooperative Agreement on October 18 to relocate the
Zao Zhuang New Gas Company Joint Venture (ZZ) from inside the city
proper to a new industrial zone for the Xuecheng District of
ZaoZhuang. The project intends for ZZ to be expanded and repurposed
to produce 283 million Nm3 of syngas per year using three SES
Gasification Technology (SGT) systems. The facility’s clean syngas
is intended to be used to generate hydrogen which will be used to
convert tar to clean burning, ultra-low sulfur diesel fuel, using
locally sourced coal in an environmentally responsible manner for
energy that is at once clean, economic and sustainable.
The Zouwu Industrial Park was established in
2014 and Xuecheng Energy is operating modern coking coal ovens and
a facility to convert coke oven gas to LNG in this park today.
Xuecheng estimates the total capital cost for the complete project,
including the syngas plant and the conversion of tar to diesel
fuel, to be 700 to 800 million Yuan.
The local government of Xuecheng District,
ZaoZhuang City, Shandong Province has expressed strong support for
this project and has agreed to give coordination and support to
permitting, land needs, and applications; tax preference to
encourage expansion, upgrades, and re-construction; and financing
preference, if the project continues to meet government
requirements.
“The recent restructuring of ZZ has opened the
pathway to develop this exciting project, and obtaining government
support is a key next step in the development process. We are
greatly encouraged with the tremendous support we have received
from the local government. The completion of this agreement will
allow us to move forward in confidence to continue to develop this
project with our partner and evaluate the level of our
participation as it moves forward,” said DeLome Fair, SES President
and CEO. “Our Vice Chairman, Robert Rigdon, was on hand alongside
Xuecheng Energy’s Chairman Liu to sign the three-party agreement
with Xuecheng Government Deputy Director Zhang Fenglin in a
ceremony in ZaoZhuang City yesterday.”
“Together with SES, we look forward to
continuing to develop this project and appreciate the strong
support of our local government,” said Liu Liangyu, Xuecheng
Energy’s Chairman. “We are excited to expand on our long-standing
relationship with SES, and to expand our existing operations in the
Zouwu Industrial Park with this new facility for the production of
clean diesel fuel which will provide lower emissions, a key
contributor to improving air quality in China.”
The new and repurposed ZZ facility in the Zouwu
Industrial Park will be the third industrial park planned to house
SGT systems in Shandong Province. The other two, announced in
Spring 2016, are Lijin County Binhai New District and Hekou Blue
Economy Industrial Park Project, both in Dongying City.
In August 2016, SES and Xuecheng Energy entered
into a Definitive Agreement to restructure ZZ, in accord with
changing regulations at the location of the original ZZ facility.
Xuecheng Energy assumed all outstanding financial liabilities of ZZ
and SES retained about 9% ownership in the joint venture. The
agreement will take effect formally when the registration with the
government is completed, which is expected this quarter.
Shandong Province is a coastal province in the
East China region. It is one of the biggest industrial producers
and one of the top chemical manufacturing provinces in China.
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, biomass and municipal solid waste through its
proprietary gasification technology based upon U-Gas®, licensed
from the Gas Technology Institute. The SES Gasification Technology
(SGT) can produce clean, low-cost syngas for power generation,
industrial fuels, chemicals, fertilizers, and transportation fuels,
replacing expensive natural gas based energy. SGT can also produce
high-purity hydrogen for cleaner transportation fuels. SGT 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, biomass, and municipal solid
waste feedstocks. For more information, please visit:
www.synthesisenergy.com.
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 ability of our project with
Yima to produce earnings and pay dividends; our ability to develop
and expand business of the TSEC 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; the ability of the ZZ Joint Venture to
complete its planned restructuring, retire existing facilities and
equipment and build another SGT facility; the economic conditions
of countries where we are operating; events or circumstances which
result in an impairment of our assets; our ability to reduce
operating costs; our ability to make distributions and repatriate
earnings from our Chinese operations; our ability to successfully
commercialize our technology at a larger scale and higher
pressures; commodity prices, including in particular natural gas,
crude oil, methanol and power, 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, 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
Roush805.624.7624PR@synthesisenergy.com
Synthesis Energy Systems (NASDAQ:SES)
Historical Stock Chart
From Mar 2024 to Apr 2024
Synthesis Energy Systems (NASDAQ:SES)
Historical Stock Chart
From Apr 2023 to Apr 2024