Synthesis Energy Systems, Inc. has announced that its 95 percent-owned joint venture project with Shandong Hai Hua Coal & Chemical Company Ltd., has been producing synthesis gas with only minor interruptions since January 7, 2008 and commenced syngas sales on February 19, 2008.
With all process units commissioned, including both gasifiers, the plant is now operating in a pure oxygen-blown mode using locally-sourced, high-ash coal as feedstock to produce syngas, which is in turn being used by Hai Hua as a feedstock for methanol production. Hai Hua and its affiliates are producers of metallurgical coke, town gas and methanol. Over the next few weeks the Hai Hua Plant is expected to optimize its process units.
With a current workforce of more than 120 dedicated employees, the Hai Hua Plant is utilizing SES' global, exclusively licensed U-GAS(R) technology. Future expansion plans for the Hai Hua Plant are being developed to increase capacity to accommodate planned increases in methanol production by Hai Hua and are expected to help meet other area gas and chemical demands.
"Commercial operations at the Hai Hua plant underscore SES' ability to execute our strategy of building, owning and operating gasification plants utilizing our U-GAS(R) technology," stated Tim Vail, President and CEO of SES. "Our execution continues with the construction of a second plant in China and two projects under development -- one in China and one in the U.S. Leveraging our strong local China experience and process know-how, we will continue to target projects globally that are close to the fuel source, easily expandable and developed with well capitalized partners."
The primary advantage of U-GAS(R) relative to other gasification technologies is its overall low cost, made possible by fuel flexibility, low operational cost, and the technology's ability to economically scale projects to meet the needs of industrial customers. U-GAS(R) technology produces much lower levels of regulated emissions, including sulfur oxides, nitrous oxides and particulates, than conventional coal combustion plants. It also allows for the low-cost capture of greenhouse gases such as carbon dioxide.