Synthesis Energy Systems Highlights Yima Joint Venture Project at 2012 Gasification Technologies Conference
WASHINGTON, Oct. 29, 2012 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ: SYMX) ("SES") is presenting today, here at the Gasification Technologies Conference (Wardman Park Marriott, booth #3), the significant accomplishments it has made in designing and constructing the Company's flagship Yima Joint Venture project in Henan Province, China. The presentation highlights the significant progress it has made in commercializing its technology both in China and other parts of the world.
William E. Preston, senior vice president, global business development and licensing, SES, will present the Yima project update on behalf of the Company during the conference session "Global Gasification Projects & Technology Update."
The Yima Joint Venture project, currently in commissioning, is nearing the completion of construction and preparing for first methanol production. The $250 million coal-to-methanol facility is the first phase of a planned $4 billion coal chemical complex. The joint venture was initiated in September 2009 upon completion of financing and commercial agreements which paved the way for implementation of the Company's technology in this important industrial park. The plant is designed to produce 300,000 tonnes per year of chemical grade methanol for China's large and growing chemical market.
Yima Coal Industry (Group) Co. Ltd. ("Yima") is a state-owned enterprise in China and an important partner of the Company. Yima is a large, integrated coal company with extensive interests in coal mining, power generation, cement, alumina and coal to chemicals. SES' technology allows companies like Yima to efficiently monetize lower quality coal and coal waste resources for the production of valuable energy and chemicals such as methanol.
"The Yima project is a significant accomplishment for the company in terms of delivering financial results, demonstrating technology performance and enabling the commercialization and adoption of our technology on a global basis," said Robert Rigdon, president and CEO, SES. "We are proud to highlight this achievement at the Gasification Technologies Conference, which is an important gathering of the world's leading industry players in the gasification space."
SES' Advanced Gasification Technology
SES has a unique commercially available gasification technology proven to economically process the lowest quality coal feed stocks, which represent approximately 50 percent of total recoverable global coal reserves. The company has developed significant intellectual property protecting its advanced fluidized bed gasification technology. Its primary advantages, relative to other gasification technologies, are greater fuel flexibility provided by the ability to use all types of coal (including low rank, high ash and high moisture coals, which are significantly cheaper than higher grade coals) and coal waste products and biomass feed stocks. The technology converts coal into synthesis gas (syngas) in a cost effective and environmentally friendly manner. It has low water and electricity usage and does not produce any harmful byproducts.
The technology can be installed on a small scale enabling the rapid construction of plants at a lower capital cost, and in many cases, in closer proximity to coal sources. The company offers multiple paths to value creation and revenue generation through technology, engineering and equipment supply, strategic business vertical partnerships operating in specific market segments, coal resource ownership and selective project investments.
About Synthesis Energy Systems, Inc.
SES provides technology, equipment and engineering 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 U-GAS® fluidized bed gasification technology, which SES licenses from the Gas Technology Institute. U-GAS® gasifies coal cost effectively, without many of the harmful emissions normally associated with coal combustion plants. The primary advantages of U-GAS® relative to other gasification technologies are (a) greater fuel flexibility provided by the ability of SES to use all ranks of coal (including low rank, 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 and SRS, please visit www.synthesisenergy.com or call (713) 579-0600.
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 early stage of development 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, its ability to complete the restructuring of the ZZ Joint Venture, its ability to obtain the necessary approvals and permits for its 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 and the ability of SES to effect the ZJX and China Energy transaction and our ongoing discussions with them, to grow its business and generate revenues and earnings as a result of its proposed China and India platform initiatives, as well as its joint venture with Midas Resource Partners. 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.
Important Notice from SES
In connection with the proposed ZJX/China Energy transaction, SES has filed a preliminary proxy statement, and intends to file a definitive proxy statement, with the SEC and intends to mail the definitive proxy statement to the stockholders of SES. SES and its directors and officers may be deemed to be participants in the solicitation of proxies from the stockholders of SES in connection with the transaction. Information about the transaction is set forth in the preliminary proxy statement filed, and will be set forth in the definitive proxy statement to be filed by SES with the SEC.
You may obtain the preliminary statement and, when available, the definitive proxy statement, for free by visiting EDGAR on the SEC website at www.sec.gov. Investors should read the definitive proxy statement carefully before making any voting or investment decision because that document will contain important information.
SOURCE Synthesis Energy Systems, Inc.