Hongli Clean Energy Technologies Corp., a vertically integrated producer of clean energy products located in Henan Province, today announced that it has discontinued its coking business by terminating the coke producing agreement with Pingdingshan Hongfengxuanmei Coking and Chemical Company on November 20, 2015. The coke inventory will be used for producing syngas. The management has fully considered the risk and expected the coke demand will continue to slide due to the soft steel industry in China.
In the meanwhile, CETC will be more laser-focused on developing, manufacturing and commercializing its clean tech energy products by leveraging its existing technologies and infrastructure. The Company’s first clean tech product, “Syngas” has gained its market reputation with its price sustained at RMB 0.67 per cubic meter while natural gas price reduced to RMB 0.7 per cubic meter.
As previously announced, CETC will employ the Pressure Swing Adsorption ("PSA") process to separate hydrogen from syngas. The hydrogen will be purified, including quality in excess of 99.96% purity, a production quantity of 12,000 cubic meters per hour, an anticipated market price of RMB 1.35 per cubic meter, cost of RMB 0.85 per cubic meter, and gross profit of 40.7%. The product can be broadly used as a raw material in hydrogen fuel cell and petrochemical synthesis industry, and transported through tankers reaching a distance as far as 500 kilometers. Additionally, the Company will employ the Cryogenic Separation Technology to separate clean energy such as ING.
The Company’s introductory UCG project is currently under the testing phase and the syngas generated from this project will also be applied with aforementioned technologies to further increase the value. As we continue focusing on technological innovation, we will become a well-respected clean tech energy company.