Synthesis Energy Systems and Midrex Announce Milestone towards State-of-the-Art MXCOL®-SES Direct Reduced Iron Gasification ...
January 08 2018 - 8:00AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SES), and Midrex
Technologies, Inc. (Midrex), a subsidiary of Kobe Steel, Ltd.
(ADR-OTC:KBSTY), today announced that the partners are proceeding
with work to expand the technical and commercial definition of
MXCOL
®-SES DRI for possible commercial
opportunities in the Indian market. SES is a global leader in the
clean and efficient production of low-cost synthesis gas for high
value energy and chemical products. Midrex is the world
leader in Direct Reduction Ironmaking Technology.
Midrex has engaged SES to complete a package of
engineering deliverables that are focused on advancing the
technical and commercial definition necessary to make proposals to
build the MXCOL®-SES DRI plants in India. This
exercise is scheduled to be completed in the first quarter of 2018.
The fully integrated and optimized DRI solution combines the
industry-leading MIDREX® Process using the MXCOL® configuration
with the premier SES Gasification Technology (SGT) to produce clean
syngas from local, low-quality Indian coal. The syngas is
integrated into MIDREX® technology to convert iron ore into
high-purity DRI, and commercialized as the
MXCOL®-SES DRI process. The integration of these
two technologies is of strategic importance because it offers an
economical alternative to natural gas and LNG-based DRI through
utilization of coal, and especially low-quality coals, to produce
DRI steel products. The new study’s specific project would use
Indian coal with 39% ash and 5% moisture.
“Together, with our global DRI partner, Midrex,
we are creating an optimized coal gasification DRI solution
combining our first-in-class technologies. While this integrated
technology combination has broad applicability in any region where
natural gas and LNG is expensive or lacks infrastructure and
availability, it has been especially well received thus far in
India, a heavy steel producing nation with high gas prices and
abundant low-quality coal,” said DeLome Fair, SES’s President and
Chief Executive Officer. “We are excited that Midrex has advanced
the marketing of the MXCOL®-SES plant concept to this stage and our
engineers are working diligently towards completing the work. While
the decision to construct a facility ultimately lies with the
project owners, we believe that upon completion of this work we
will be well positioned in the Indian market for an order
commitment related to MXCOL®-SES DRI technology at
some point in 2018.”
“After understanding the
MXCOL®-SES potential in India, related to
technology and operating costs, both Midrex and SES are now
proceeding jointly with the necessary work required to define an
optimum financial solution for making commercial offers for
MXCOL®-SES DRI projects to Indian steel makers,”
said Stephen C. Montague, president and Chief Executive Officer of
Midrex Technologies, Inc. “Additionally, we are defining an
implementation strategy for these projects that includes
significant sourcing of components within India such that our
offering falls in line with the government’s ‘Make in India’
campaign.”
SES and Midrex entered a Joint Marketing and
Product Commercialization Agreement in 2014 and further expanded
the collaboration in 2015 when the companies entered into the
Midrex-SES Project Alliance Agreement to work together exclusively
on a global basis to provide an integrated MXCOL®
and SGT solution. Under these two agreements, Midrex leads the
marketing, sales, proposal development, and project execution for
coal gasification DRI projects. Midrex may also coordinate the
construction of the fully integrated MXCOL®-SES
DRI solution for customers who desire such an execution strategy.
SES provides the DRI gasification technology for each project
including engineering, key equipment, and technical
services.
India is the second largest producer of DRI in
the world, with most production utilizing rotary kilns that result
in high operating costs and low DRI quality. The
MXCOL®-SES process will allow better project
economics and improves the quality of the DRI, since the captive
production using the MXCOL®-SES technology is less
costly than the recycled scrap used in conventional DRI processes
today.
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.
About Midrex Technologies,
Inc.
Midrex Technologies, Inc., a wholly owned
subsidiary of Kobe Steel, is an international process engineering
and technology company providing steelmakers with commercially
proven solutions for greater profitability and has been the leading
innovator and technology supplier for the direct reduction of iron
ore for more than 40 years. The company offers eco-friendly
technologies for ironmaking that provide high productivity,
outstanding product quality, and cost competitiveness. Midrex has
built its foundation upon the MIDREX® Direct Reduction Process that
converts iron ore into high-purity direct reduced iron (DRI) for
use in steelmaking, ironmaking, and foundry applications. Each
year, MIDREX® Plants produce over 60 percent of the world's DRI.
For more information, visit: www.midrex.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 and are subject to
certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. 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 be correct. Please refer to our latest Form
10-K available on our website at www.synthesisenergy.com.
Contact:
Synthesis Energy Systems, Inc. MDC GroupInvestor Relations:David
CastanedaArsen Mugurdumov414.351.9758IR@synthesisenergy.com
Media Relations:Susan
Roush805.624.7624PR@synthesisenergy.com
Midrex Technologies, Inc.
General Press/Media Inquiries:Christopher M.
Ravenscroft704.378.3380cravenscroft@midrex.com
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