Contact Information: Contact: Synthesis Energy Systems Houston, Texas Suzanne M. McLeod Manager Investor Relations (713) 579-0602 suzanne.mcleod@synthesisenergy.com
Construction Begins in China on SES' First Coal Gasification Facility
SES Continues to Advance Its Global Development and Commercialization of U-GAS(R) Technology
| Source: Synthesis Energy Systems
HOUSTON, TX -- (MARKET WIRE) -- December 5, 2006 -- Synthesis Energy Systems ("SES" or the
"Company") (OTC : SYMX ) announced that its 95%-owned joint venture, SES
(Zaozhuang) New Gas Company, Ltd., held an official ground breaking
ceremony in Shandong, China today for its new coal gasification facility.
This facility will use the Company's proprietary U-GAS® licensed
technology to cleanly convert waste coal to synthesis gas ("syn-gas"). The
plant will be SES' first designed and built U-GAS® coal gasification
facility and signifies a key milestone in the global development and
commercialization of the Company's gasification technology.
"As a way to help reduce China's dependence on the import of petroleum
products, coal gasification technologies represent an important substitute
as well as a viable solution to energy security," said SES Chairman Lorenzo
Lamadrid. "China has some of the world's largest coal reserves and we
believe our clean and efficient U-GAS® coal gasification technology fits
perfectly with China's development priorities. This plant will be the
first in China to offer low-pollution, high-efficiency U-GAS® technology
that will convert low quality, low cost coals into syn-gas, which can be
used in a variety of applications. We are excited and proud to be
providing a technology that is coming to the forefront not only in China,
but throughout the world."
"This new development represents an important milestone for SES. We are
grateful for the support we have received from our leading customer, Hai
Hua Coal Chemical Company, Ltd. ("Hai Hua"), and from Zaozhuang City and
look forward to continuing to earn their confidence in this very important
market," added SES President and CEO Asia Pacific Don Bunnell.
Adjacent to Hai Hua's coke and methanol facility located in Zaozhuang City,
Shandong Province, China, the 28,000 Normal cubic meters ("Ncum") per hour
U-GAS® coal gasification plant will use approximately 200,000 tons of
waste coal per year. Hai Hua will use the product syn-gas created by the
facility as a feedstock for its newly constructed methanol plant, and as
fuel in its coke ovens and for its internal power generation facility.
The SES coal gasification plant is expected to commence commercial
operation in the third quarter of 2007. Once operational, it will employ
approximately 100 people. Discussion of expanding the U-GAS® facility to
accommodate Hai Hua's planned increased methanol production and to meet the
gas demands of other Xuecheng industrial park tenants has already begun
between SES and Hai Hua.
Ceremonies, hosted jointly by SES Chairman Lorenzo Lamadrid and Hai Hua
Group Vice Chairman Mr. Liu Jingmeng, commemorated the start of
construction on the new U-GAS® facility as well as the commercial
operation of a new 100,000 tons per year of capacity methanol plant, owned
by a subsidiary of Hai Hua.
Among the dignitaries attending the ceremonies were the Party Secretary of
Zaozhuang City, as well as leaders from the Shandong Province of Xuecheng,
Economic Development Zone, and regional and local government. Other
prominent invited guests included scientific and business members and press
corps from China and abroad.
As one of the Guests of Honor for the ground breaking ceremonies, Hai Hua
Group Vice Chairman Mr. Liu Jingmeng said, "The development of this project
will enable Hai Hua to take advantage of the inherent value of SES'
U-GAS® gasification technology which is to utilize a wide array of low
quality, low cost coals and the flexibility to cleanly and efficiently
convert coal to a variety of high grade chemical products." Mr. Liu
Jingmeng went on to say, "Hai Hua's partnership with SES is a plus for both
sides. As a result, Hai Hua will have a secure supply of syn-gas cleanly
produced from Hai Hua's waste coal for its methanol facility while SES
values from the opportunity to provide a viable alternative energy solution
with remarkable economic returns."
About Synthesis Energy Systems
Synthesis Energy Systems, Inc. is an energy and technology company that
deploys proprietary technology to efficiently and cleanly gasify low value
fuels to replace high cost energy and chemical products sold to major
global markets. With its proprietary U-GAS® technology, licensed from
the Gas Technology Institute, SES can cleanly turn waste coal products into
high value synthesis gas for use in power and chemical applications. SES'
technology performs this gasification without 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' control. These include, but are not limited to, risks and
uncertainties associated with: the impact of economic, competitive, and
other factors affecting the SES and its operations; and other risk factors.
SES cautions that the foregoing factors are not exclusive. SES assumes no
obligation to update the information contained in this press release.