Contact Information: Contact: Synthesis Energy Systems, Houston, Texas Suzanne M. McLeod Manager, Investor Relations (713) 579-0602 suzanne.mcleod@synthesisenergy.com
SES and Golden Concord Sign Joint Venture Contract to Build Coal Gasification, Methanol and DME Plant in Inner Mongolia, China
Plant to Optimize Coal Reserves to Meet China's Growing Need for Clean Transportation Fuels and Chemical Feedstocks
| Source: Synthesis Energy Systems
HOUSTON, TX--(Marketwire - June 6, 2007) - Synthesis Energy Systems Investments, Inc., a
subsidiary of Synthesis Energy Systems, Inc. ("SES" or the "Company") (OTC : SYMX ), a coal gasification company involved in the conversion of low cost
fuels into clean energy and chemical products, and Inner Mongolia Golden
Concord (Xilinhot) Energy Co., Ltd., a subsidiary of Golden Concord
Holdings Ltd. ("Golden Concord"), a private provider of electricity, steam
and chilling water in China, have signed a co-operative joint venture
contract to build an integrated coal gasification plant and methanol and
Dimethyl Ether ("DME") production plant (the "Plant"). Located in the
Inner Mongolia Autonomous Region of China, the Plant will optimize low
value, abundant lignites from coal mines to meet the region's growing need
for clean, affordable non-petroleum-based fuels and petrochemical
feedstocks.
Tim Vail, President and Chief Executive Officer of SES, said, "Working
together, SES and Golden Concord are demonstrating their commitment to
develop cleaner, high-quality fuels, at a lower cost based on the
utilization of the U-GAS® technology to gasify low quality, high-ash
coals to supply China's growing appetite for clean fuels and petrochemicals
that fuel economic development. The application of the U-GAS® technology
offers significant economical and environmental advantages that are
encouraged by the Chinese government including increased output and
efficiency as well as the ability to reduce emission levels below
conventional coal and the option to capture and sequester greenhouse gases
responsible for global warming."
Vail went on to say, "Our joint investment in this Plant with Golden
Concord exhibits SES' ability to establish mutually beneficial cooperative
relationships with strategic partners in China, the most important emerging
chemicals market in the world."
SES and Golden Concord will own 51% and 49% respectively of the joint
venture named SES-GCL (Inner Mongolia) Coal Chemical Company Ltd. (the "JV
Company"), based at the Lignite Coal Chemical Industrial Base of Xilinguole
Economic and Technology Development Zone in the Inner Mongolia Autonomous
Region.
"The establishment of this project will provide wider clean energy choices
in the future by supplying high-quality methanol and DME products to
Beijing and other cities in North East China," said Mr. Zhang Wei, Chief
Administration Officer for Golden Concord.
The JV Company will develop, construct, own, operate, and manage the Plant,
which will utilize the Company's licensed U-GAS® technology to convert
low-quality, high-ash lignite coals made available from Golden Concord's
coal mine in Xilinguole, Inner Mongolia and other mines in the area into a
clean gaseous mixture called synthesis gas ("syngas"). The Plant is
expected to produce about 84,000 Normal cubic meters per hour of gross
syngas. The syngas produced will then be used as a feedstock for the
production of a 225,000 ton/year methanol plant. Methanol is a basic
building block used in manufacturing for a wide variety of chemical
products including plastics, paints, construction materials, as a hydrogen
carrier for fuel cell applications, and can be blended with gasoline. In
this application, the coal-derived methanol will also be used to produce
150,000 ton/year of DME, an alternative to liquefied petroleum gas, liquid
natural gas, diesel and gasoline.
Donald Bunnell, President and CEO of SES - Asia Pacific, stated, "We are
honored to partner with Golden Concord and excited about this business
model to utilize low cost coals to provide clean and sustainable energy in
China in an environmentally friendly manner. It is a model we expect to
apply to future business opportunities in this region as well as the U.S."
Coal is the most abundant energy resource in both China and the U.S. --
together making up approximately 40% of world coal reserves. Producing
clean energy and transportation fuels from indigenous coal sources is
critical to both China and the U.S. Once an exporter, China now imports at
least 43% of its oil supply, most of which is needed to supply its rising
transportation fuel demands. According to the National Statistics Bureau,
the number of private cars in China nearly tripled between 2000 and 2005,
from 6.25 million to 17 million vehicles.
DME, manufactured from methanol, is a clean multi-purpose fuel and is also
becoming accepted as a synthetic liquefied petroleum gas blendstock in
China. Using coal-derived methanol to produce DME, and other clean fuels,
can help meet the world's need for non-petroleum-based fuels and
petrochemical feedstocks.
Both SES and Golden Concord have begun discussing future plans for
expanding the syngas-methanol-DME Plant to further capture economic
opportunities.
About Synthesis Energy Systems
Synthesis Energy Systems, Inc. is an energy and technology company that
deploys proprietary systems and technology to gasify low value fuels to
replace high cost energy and chemical products sold to major global
markets. The U-GAS® technology, which the Company licenses from the Gas
Technology Institute, is designed to turn waste coal products into high
value synthesis gas for use in power and chemical applications. The
technology performs this gasification without many of the harmful emissions
normally associated with coal fired energy production. SES currently has
offices in Houston, Texas, Shanghai and Beijing, China. For more
information on SES, visit www.synthesisenergy.com or call (713) 579-0600.
Forward-Looking Statements
Except for historical information contained herein, the matters discussed
in this press release contain 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 that involve substantial
risks and uncertainties. When used in this press release and in any
documents incorporated by reference herein, the words "expects," "will" and
similar expressions identify certain of such forward-looking statements.
Actual results, performance, or achievements could differ materially from
those contemplated, expressed, or implied by the forward-looking statements
contained herein. These forward-looking statements are based largely on the
expectations of SES and are subject to a number of risks and uncertainties
that are subject to change based on factors which are, in many instances,
beyond SES's control. These include, but are not limited to, risks and
uncertainties associated with: our early stage of development, the limited
history and viability of our technology and our results of operation in
foreign countries. SES cautions that the foregoing factors are not
exclusive. SES assumes no obligation to update the information contained in
this press release.