Contact Information: Contact: Synthesis Energy Systems, Houston, Texas Suzanne M. McLeod Manager, Investor Relations (713) 579-0602 suzanne.mcleod@synthesisenergy.com
Main Construction Contract for SES' First Coal Gasification Facility Awarded
| Source: Synthesis Energy Systems
HOUSTON, TX -- (MARKET WIRE) -- February 19, 2007 -- Synthesis Energy Systems ("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"), signed the main construction
contract for its first coal gasification facility of low rank coals in
China. With this contract, construction of the new 28,000 Normal cubic
meters ("Ncum") per hour coal gasification facility in Shandong Province,
China (the "Project") continues to progress according to schedule. The
Project will use the U-GAS® licensed technology to cleanly convert low
rank coal to synthesis gas ("syngas").
Pursuant to the terms of the contract, the Shanghai Wuye Construction
Company, Ltd. ("Wuye") will provide the Project's civil construction and
related project equipment and piping installation. Wuye was previously
assigned the Project's initial civil work, which was completed in early
February 2007. The Project is targeting substantial mechanical completion
by mid summer of 2007, and the start-up to begin in the third quarter of
this year. Upon successful start-up, the Company is hoping to also begin
commercial operations during the third quarter, less than one year from the
Project's initial ground breaking in December 2006.
Preparations for the Project have been ongoing since the Joint Venture
began in August 2006. Upon successful start-up, the Project will provide
approximately 100 jobs in the local community, and will be a part of
expanding Shandong's economic diversification, as well as supporting the
clean and efficient conversion of low-rank fuels into a stable, affordable
supply of energy and chemicals. Hai Hua will use the syngas produced from
the coal gasification facility as a feedstock for its newly constructed
methanol plant, and as a fuel in its coke ovens and for its internal power
generation facility. 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.
The Project is an important milestone in SES' growth strategy and the first
among a number of additional project opportunities SES' international
marketing and business development team is pursuing in Asia, Europe and the
United States. Worldwide, SES is rapidly developing and commercializing
alternative energy and chemical projects, technologies and systems based on
the "clean" gasification of low-cost fuel sources and establishing U-GAS®
as a reliable and efficient alternative source of energy and chemical
products to manufacturers.
Tim Vail, SES President and CEO, stated, "The signing of this agreement
further strengthens our commitment to complete the Project on time and on
budget. Wuye has clearly demonstrated their ability to deliver as promised
given their successful completion of the Project's initial civil work.
Given Wuye's excellent performance, the Project is moving according to
schedule, and if the start-up proceeds as anticipated we are positioned to
achieve commercial operation as planned later this year."
"We're excited to continue our rapid progress towards our goal of building
and owning our first U-GAS® coal gasification plant in China that
provides a cost-effective and environmentally responsible solution for Hai
Hua's syngas needs and pleased to have the support of Wuye as our main
construction contractor to help us achieve this significant development,"
concluded Vail.
About Synthesis Energy Systems
Synthesis Energy Systems, Inc. is an energy and technology company that
deploys proprietary systems and technology to efficiently and cleanly
gasify low value fuels to replace high cost energy and chemical products
sold to major global markets. The U-GAS® technology, which the Company
licensed 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.
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.