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 Memorandum of Understanding to Join Forces to Deliver High-End Syngas to Methanol to DME From Low Cost Coals in Inner Mongolia
Companies Plan Definitive Agreement
| Source: Synthesis Energy Systems
HOUSTON, TX -- (MARKET WIRE) -- March 13, 2007 --Synthesis Energy Systems, Inc. ("SES" or the
"Company") (OTC : SYMX ), a provider in creating high-value chemical
feedstocks and clean energy from a wide array of low-end fuels, and Golden
Concord Holdings Ltd. ("Golden Concord"), a leading private provider of
electricity, steam and chilling water in China, have signed a Memorandum of
Understanding ("MOU") for the construction of an integrated coal
gasification to methanol to Dimethyl Ether ("DME") plant (the "Plant") in
Inner Mongolia to be mutually owned through a joint venture company
("JVC").
The JVC will construct, own and operate the Plant, which will use the
Company's licensed U-GAS® technology to convert low cost lignite from
Golden Corcord's coal mine in Xilinguole, Inner Mongolia, to produce
synthesis gas ("syngas") which will feed a methanol plant. The methanol
created will feed the JVC's DME Plant. The parties are also considering
additional syngas production for the local town gas network.
SES and Golden Concord are currently in negotiations to finalize the full
transaction, including agreements for the JVC, coal purchase, operations
and management for the Plant, and other related agreements. These
agreements remain subject to approval of the board of directors of both
companies, as well as approval from the relevant government authorities in
Inner Mongolia.
Asia and the U.S., with their vast coal reserves, need clean transportation
fuel from a secure source. DME, manufactured from coal-derived methanol
and biomass, 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.
Donald Bunnell, President and CEO of SES - Asia Pacific, stated, "We are
extremely pleased to announce this MOU with Golden Concord. Our
partnership represents progress in our growth strategy to develop
alternative energy and chemical projects, technologies and systems based on
the gasification of low cost fuel sources and to establish U-GAS® as a
reliable and efficient alternative source of energy and chemical products
to manufacturers worldwide."
Commenting further, Mr. Bunnell stated, "Golden Concord is a prestigious
player in the Asian energy market, and like SES, they are committed to the
provision of clean and sustainable energy. We believe that we will be able
to provide the U-GAS® technology to produce a cleaner, high-quality fuel,
at a lower cost using Golden Concord's low value coals from its Xilinguole
coal mine."
Mr. Zhu Gong Shan, Chairman of Golden Concord, stated, "We are looking
forward to working together with SES on this important project. Both
companies believe that utilizing low cost coal from Inner Mongolia will
allow us to be one of the world's lowest cost methanol and DME producers.
The government is very supportive of projects that can utilize low cost
coals in an environmentally-friendly manner to produce methanol and DME and
this project will be the foundation for further cooperation between our
companies."
The Plant is expected to break ground by the end of this summer and be in
operation by late 2008. The design of this Plant is intended to be used as
a standard for any future plants that the JVC constructs. 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.