SES, Hai Hua Joint Venture Completes Financing for Gasification Plant in China
HOUSTON, TX -- (MARKET WIRE) -- March 27, 2007 -- Synthesis Energy Systems, Inc. ("SES" or the
"Company") (OTC: SYMX) announced that SES (Zaozhuang) New Gas Company,
Ltd., its 95%-owned joint venture (the "Joint Venture") with Shandong Hai
Hua Coal & Chemical Company Ltd. ("Hai Hua"), completed the funding of a
loan for its first coal gasification facility currently under construction
in Shandong Province, China (the "Project"). The loan of China Yuan
Renminbi (RMB) 92 million (US$12 million) is being provided by the
Industrial and Commercial Bank of China ("ICBC") and represents
approximately one half of the Project's projected construction costs.
"This represents the first successful bank financing of a U-GAS®
gasification facility in China, and evidences the strength of this project
and its partners," explained Donald Bunnell, President and CEO of SES -
Asia Pacific. "We are extremely pleased to have achieved this financial
closing with ICBC which further validates the U-GAS® technology as a
reliable and efficient alternative source of energy and chemical products
to manufacturers worldwide."
"It's an important step forward for SES as it brings us closer to our
strategic vision. We are pursuing similar investment opportunities in
China, as well as in the United States, and plan to replicate our U-GAS®
designed facility to meet our business partner's needs for clean and
sustainable energy and chemical products," concluded Bunnell.
The Joint Venture was formed in August 2006 to construct, own and operate
this Project, which will use SES' licensed U-GAS® technology to convert
low cost waste coal to synthesis gas ("syngas"). Hai Hua will use the
product syngas produced from the coal gasification facility as a feedstock
for its newly constructed methanol plant, and as fuel in its coke ovens and
for its internal power generation facility.
Construction is currently about 60 percent complete with start-up
anticipated in the third quarter of this year. Upon successful start-up,
the Company expects to begin commercial operations, which should be less
than one year from the Project's initial ground breaking in December 2006.
Future expansion plans would increase capacity up to 100,000 Ncum per hour
and would accommodate Hai Hua's planned increase in methanol production and
meet the gas demands of other Xuecheng industrial park tenants.
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.
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.