Synthesis Energy updates on Tianwo-SES JV projects in China

Synthesis Energy Systems, Inc., a global energy and gasification technology company enabling clean, high-value energy and chemical products from multiple feedstocks, reports a progress update from its Tianwo-SES Clean Energy Technologies Company Joint Venture in China. The second of three previously announced natural gas replacement projects under construction for Aluminum Corporation of China Limited, located in Xing County, Shanxi Province, has completed installation of the facility's single SES Gasification Technology system. The project team is commencing the first heat-up of the gasifier for the refractory curing period. The start-up of the gasifier is expected later this year.

In addition to Shanxi, the first of the three Chalco projects located in Zibo City, Shandong Province, is in its start-up and testing phase producing syngas which is being used as a clean and more economical fuel gas alternative to the more expensive natural gas now used by Chalco. Fast-track construction on the third and largest Chalco project with three SES gasification systems, located in Henan Province, is also now well underway. Once all three projects enter commercial operation, the installed base for SES Gasification Technology will expand from five to 12 gasification systems in operation in China.

"Our ICCDI partner, with assistance from our Tianwo-SES joint venture team, continues to make good progress on completing the three Chalco projects with significantly fast-tracked construction. With the Zibo City plant now well into its startup and Shanxi nearing commissioning, ICCDI and Tianwo-SES are well positioned to have both projects operational this year. Based on current progress, we would expect to see the Henan project to enter its commissioning by early next year," said DeLome Fair, President SES Technologies, LLC. "These coal-to-gas turnkey projects manufacture clean syngas from our advanced technology which is used to replace natural gas with our much more economical and clean syngas substitute. We are now evaluating a growing pipeline of prospects for similar gas replacement projects."

Total construction order commitments of approximately $102 million (650 million Yuan) for the three projects were announced in December 2014 between Aluminum Corporation of China, China's largest alumina and primary aluminum producer, and Innovative Coal Chemical Design Institute (Shanghai) Co., Ltd. (ICCDI). ICCDI is the general contractor supplying all the engineering, construction and balance of plant equipment for the three projects. The total order value for these projects is expected to be approximately $22 million (140.3 million Yuan).