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Synthesis Energy Systems Signs MOU with Hulunbeier Tianfu Energy for City Gas Project



Synthesis Energy Systems Signs MOU with Hulunbeier Tianfu Energy for City Gas
                                   Project

Exclusive Agreement for Supply of SES Technology, Equipment and Services

PR Newswire

HOUSTON, Oct. 23, 2013

HOUSTON, Oct. 23, 2013 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ:
SYMX)("SES") announced today that its subsidiary company, SES New Energy
Technologies (Shanghai) Co., Ltd., has entered into a Memorandum of
Understanding ("MOU") with Hulunbeier Tianfu Energy Co., Ltd. ("Tianfu"), for
the supply of SES' gasification technology, equipment and services to its 1
billion normal-cubic-meters per-year city gas project to be built in
Hulunbeier, Inner Mongolia, China.

(Logo:  http://photos.prnewswire.com/prnh/20130710/NY45085LOGO)

The project is to be located in the Xie'ertala Project Area of the Hulunbeier
Economic and Technical Development Zone.  Tianfu has completed the required
Feasibility Study Report and Environmental Impact Assessment based on using
SES' gasification technology.  The project has also received approvals to
proceed from both the Hulunbeier City Development and Reform Commission and
the Hulunbeier City Environmental Protection Bureau.  The total project scale
is a planned 1 billion normal-cubic-meters per year at an estimated cost of
3.45 billion RMB and is to be built in phases. The first phase is planned to
be 330 million normal-cubic-meters and completion of phase one is estimated to
occur approximately 18 months after construction starts.

Tianfu intends to use SES' gasification technology for the conversion of Inner
Mongolian lignite resources to syngas.  According to the terms of the MOU,
both sides have agreed to work exclusively over the next 12 months for the
purpose of completing the technology licensing, equipment supply and technical
service agreements.

The project leader of Tianfu, Mr. Xu Zhenzhong, said, "SES' gasification
technology is one of the most advanced coal chemical technologies of the world
and is especially environmentally friendly. Once completed, the project is
expected to supply gas to Hulunbeier residents as well as provide gas for
mining industry vehicles in the eastern region of Inner Mongolia." Mr. Xu
added, "The project will promote the development and clean utilization of
lignite, resolve the tight natural gas supply in Hulunbeier, and extend the
industrial chain and added value from lignite, while also maximizing the
benefit and the value from the lignite resources of Hulunbeier."

Robert Rigdon, President and CEO of SES, said, "This cooperation with Tianfu
is a real win-win for both Tianfu and SES and the city of Hulunbeier and is a
great example of how our gasification technology brings distinct economic and
environmental advantages. We believe our technology's ability to be
constructed at lower cost, use less water and most importantly to economically
transform Hulunbeier's lignite resources into valuable syngas for production
of city gas, can deliver a big economic and environmental advantage over other
alternatives." Mr. Rigdon added, "We are moving forward now to complete the
technical and commercial arrangements for the supply of our technology package
to this project.  This package includes the required license plus gasification
equipment and services.  We are focused intently on delivering near-term
financial results from our business in China through the upcoming startup of
our ZZ JV along with the Yima JV project.   We believe that supplying our
technology package into this project, combined with our recently announced
supply of technology and equipment to Hongye's glycol project, has the
potential to further add to our financial results and build momentum for
additional projects in China."  

About Synthesis Energy Systems, Inc.

SES provides technology, equipment, engineering and technical services for the
conversion of low rank, low cost coal and biomass feedstocks into energy and
chemical products. Its strategy is to create value through providing
technology and equipment in regions where low rank coals and biomass
feedstocks can be profitably converted into high value products through its
proprietary fluidized bed gasification technology, which SES licenses from the
Gas Technology Institute. The SES technology converts coal in a cost effective
manner into synthesis gas without many of the harmful emissions normally
associated with coal combustion plants. The primary advantages of the SES
gasification technology relative to other gasification technologies are (a)
greater fuel flexibility provided by the ability of SES to use most all
qualities of coal (including lower grade, high ash and high moisture coals,
which are significantly cheaper than higher grade coals), many coal waste
products and biomass feed stocks; and (b) the ability of SES to operate
efficiently on a smaller scale, which enables the construction of 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, please visit www.synthesisenergy.com or
call (713) 579-0600.

About Hulunbeier Tianfu Energy Co., Ltd.

Hulunbeier Tianfu Energy Co., Ltd. is a joint venture established by Jilin
Tianfu Energy Group Co., Ltd. and Youxin Group. The company was established in
April 2012. The main business of Jilin Tianfu Energy Group Co., Ltd. includes
production, processing and selling of liquefied natural gas (LNG) and
compressed natural gas (CNG), and natural gas pipeline transportation, land
transportation, and other new energy development projects. Youxin Group's has
begun to expand to industrial, real estate, technology, investment, finance
and many other fields from commercial industry. The Group currently has a
number of direct or indirect holding of subsidiaries, the total assets is more
than 6 billion RMB.

SES 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 development stage of the operations of
SES, its estimate of the sufficiency of existing capital sources, its ability
to successfully develop its licensing business, its ability to raise
additional capital to fund cash requirements for future investments and
operations including its China platform initiative, its ability to reduce
operating costs, the limited history and viability of its technology,
commodity prices and the availability and terms of financing opportunities,
its results of operations in foreign countries, its ability to diversify, the
ability of the ZZ joint venture to effectively operate XC's methanol plant and
produce methanol, its ability to obtain the necessary approvals and permits
for future projects, the estimated timetables for achieving mechanical
completion and commencing commercial operations for the Yima project as well
as the ability of the Yima project to produce revenues and earnings, the
sufficiency of internal controls and procedures, its ability to grow its
business and generate revenues and earnings as a result of its proposed China
and India platform initiatives, and its ability to develop its power business
unit and marketing arrangement with GE and its other business verticals, steel
and renewables. 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.

SOURCE Synthesis Energy Systems, Inc.

Contact: Synthesis Energy Systems, Inc., Charles Costenbader, Chief Financial
Officer, (713) 579-0600, Charles.Costenbader@synthesisenergy.com, MBS Value
Partners, LLC, Matthew D. Haines (Investors), Managing Director, (212)
710-9686, Matt.Haines@mbsvalue.com; or Feintuch Communications (Media), Emily
Simmons, Senior Managing Director, (212) 808-4904, SES@feintuchpr.com
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