Synthesis Energy Systems, Inc. Announces Closing of the Tianwo-SES Clean Energy Technologies Co. Restructuring Agreement, Rec...
August 29 2017 - 9:00AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global leader
in the clean and efficient production of low-cost synthesis gas for
high value energy and chemical products, today announced it has
closed the restructuring of its Chinese joint venture, Tianwo-SES
Clean Energy Technologies Co., Ltd. (Tianwo-SES). Further, SES
announced it has received 11.15 million Yuan (approximately $1.67
million), which represents all remaining funds related to the
restructuring agreements. As part of the restructuring SES reduces
its 35% ownership to 25% and its existing partner, Suzhou THVOW
Technology Co., Ltd. (THVOW) (Shenzhen listing code:002564),
reduces its ownership from 65% to 50%. Innovative Coal Chemical
Design Institute (ICCDI), which engineered and constructed all
three Aluminum Corporation of China (CHALCO) SES Gasification
Technology (SGT) projects, joins forces in the Tianwo-SES joint
venture with a 25% share ownership. The parties are now completing
the required ownership registration changes with local government
authorities in Zhangjiagang, Jiangsu, China.
SES President and CEO, DeLome Fair, commented:
“The entry of ICCDI into the Tianwo-SES partnership is expected to
strengthen the joint venture’s bidding capability. We believe
Tianwo-SES will be placing an emphasis on securing increasingly
larger scale coal-to-chemical projects in China that will
economically benefit from using SGT’s lower cost coal capability.
Additionally, Tianwo-SES, together with ICCDI, have a proven track
record of delivering low-cost, short schedule SGT syngas projects
for industrial users like Aluminum Corporation of China, and we
believe it is well-positioned to expand its presence in this market
segment, as well. Our team is looking forward to fully supporting
Tianwo-SES as it now moves to secure its next projects.”
Tianwo-SES Chairman, Chen Yu Zhong, stated: “Our
Tianwo-SES joint venture, together with ICCDI, has completed a
great accomplishment with the design, construction and start-up of
the SGT syngas projects for CHALCO. These three fast-track projects
were successfully completed in approximately 18 months. Today they
are all running well and producing quality low-cost syngas using
SES Gasification Technology. We intend to build on this
record of accomplishment by focusing primarily on two strategic
pathways. We will expand our capabilities by building much higher
capacity and higher pressure SGT gasification systems for use in
China’s largest scale coal-chemical projects, while continuing to
deliver competitive and cleaner syngas projects to industrial
customers in the metals and ceramics industries. We believe the
official entry of ICCDI into the business will provide strong
additional business development, engineering and construction
capabilities.”
In conjunction with the Tianwo-SES JV
restructuring and the receipt of 11.15 million Yuan (approximately
$1.67 million), SES previously received an initial payment of 1.2
million Yuan (approximately $180,000) related to outstanding
invoices for services SES has provided to Tianwo-SES.
SES, through its wholly owned subsidiary, SES
Asia Technologies, Ltd., originally entered into definitive
agreements to form the Tianwo-SES joint venture with THVOW,
formerly Zhangjiagang Chemical Machinery Co., Ltd. in February
2014. Since formation, Tianwo-SES successfully completed the supply
of specialty equipment and technology related to SES’s syngas
generation technology to the three CHALCO projects built by
ICCDI.
About Synthesis Energy Systems,
Inc.
Synthesis Energy Systems (SES) is a
Houston-based technology company focused on generating clean,
high-value energy from low-cost and low-grade coal, biomass and
municipal solid waste through its proprietary technology for
conversion of these resources into a clean synthesis gas (syngas)
and methane. SES’s proprietary technology enables the production of
clean, low-cost power, industrial fuel gas, chemicals, fertilizers,
transportation fuels, and substitute natural gas, replacing
expensive natural gas-based energy. SES’s technology can also
produce high-purity hydrogen for cleaner transportation fuels. SES
enables 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, waste
coals, biomass, and municipal solid waste feedstocks. SES: Growth
With Blue Skies. For more information, please visit:
www.synthesisenergy.com.
Forward-Looking StatementsThis
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 develop our power business unit 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 retire existing facilities and
equipment and build another SGT facility; the ability of Batchfire
and AFE management to successfully grow and develop their
Australian assets and operations, including Callide and Pentland;
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 customers’ and/or 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 Group
Investor Relations:
David Castaneda
Arsen Mugurdumov
414.351.9758
IR@synthesisenergy.com
Media Relations:
Susan Roush
805.624.7624
PR@synthesisenergy.com
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