Contact Information: Contact: Synthesis Energy Systems, Houston, Texas Suzanne M. McLeod Manager, Investor Relations (713) 579-0602 suzanne.mcleod@synthesisenergy.com CONSOL Energy Inc. Tom F. Hoffman SVP, External Affairs (412) 831-4060
Synthesis Energy Systems and CONSOL Energy Enter Into Agreement to Explore U.S. Coal Gasification Projects
High Costs Drive Market Opportunities for Natural Gas Replacement Options
| Source: Synthesis Energy Systems
HOUSTON, TX--(Marketwire - September 6, 2007) - Synthesis Energy Systems, Inc. ("SES" or the
"Company") (PINKSHEETS : SYMX ) and CONSOL Energy Inc. ("CONSOL Energy")
(NYSE : CNX ), the largest producer of bituminous coal in the nation, have
entered into an agreement to investigate the development of coal-based
gasification facilities to produce feedstock for various industrial
chemical manufacturers whose plants have been shut down due to the high
cost of natural gas. SES and CONSOL Energy will also investigate the
feasibility of developing substitute natural gas ("SNG") facilities to meet
the demand for clean, affordable energy.
Under the agreement, SES and CONSOL Energy will perform engineering,
environmental and marketing activities to analyze the feasibility of
projects that would use coal gasification technology to convert coal from
preparation plant tailings provided by CONSOL Energy's coal mining
complexes located in the eastern United States into higher-value products
including: methanol, ethanol, mixed alcohols, ammonia and SNG. The
projects will initially be focused geographically within CONSOL Energy's
Northern Appalachian mine sites in Pennsylvania, West Virginia, and Ohio.
This agreement requires completion of a successful project feasibility
study and further negotiation of a definitive agreement by both parties
before any projects will be undertaken.
CONSOL Energy mining complexes produce an estimated 20 million tons per
year of coal preparation plants tailings that include un-recovered coal
that could be used to make valuable liquid and gas products rather than be
land filled as waste.
SES owns an exclusive global license for U-GAS® gasification technology
that has been developed over the past 30 years by the Gas Technology
Institute, and was designed especially to convert low-rank waste coal,
which would otherwise be disposed in landfills, to synthesis gas
("syngas"). The syngas produced is a valuable feedstock that can then be
used to produce liquid transportation fuels, bulk chemical commodities, and
other energy commodities. The U-GAS® technology advantages are its fuel
flexibility, lower operational costs, and ability to economically scale
projects to meet the needs of its industrial customers for cleanly
converting the nation's ready source of low rank coal and coal waste into
industrial chemicals and SNG.
CONSOL Energy is a multi-energy producer of coal, natural gas and
electricity in the United States with 4.5 billion tons of proven and
probable coal reserves and 1.3 trillion cubic feet of natural gas reserves.
The company is also a major fuel supplier to the electric power industry in
the northeast quadrant of the United States.
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.
About CONSOL Energy Inc.
CONSOL Energy Inc., a member of the Standard & Poor's 500 Equity Index, has
annual revenues of $3.7 billion. The company was named one of America's
most admired companies in 2005 by Fortune magazine. It received the U.S.
Department of the Interior's Office of Surface Mining National Award for
Excellence in Surface Mining for the company's innovative reclamation
practices in 2002 and 2003. Also in 2003, the company was listed in
Information Week magazine's "Information Week 500" list for its information
technology operations. In 2002, the company received a U.S. Environmental
Protection Agency Climate Protection Award. Additional information about
the company can be found at its web site: www.consolenergy.com.
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.