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Synthesis Energy Systems Inc. (SYMX) Completes Gasification Testing, Moves toward Licensing Agreement

Synthesis Energy Systems Inc., a global energy and gasification technology company, today announced it has completed a commercial-scale demonstration test in which more than 2,000 tons of high ash coal from Queensland, Australia were gasified at its Zao Zhuang plant in Shandong Province, China.

Synthesis Energy conducted the test in response to the significant interest it has received from Ambre Energy of Australia, which has plans to build a coal-to-gasoline/LPG plant with a capacity of 18,000 barrels per day. During the test, Synthesis Energy efficiently processed Ambre’s low-to-medium rank, 42.6% ash content coal.

Synthesis said the syngas produced during the test met all production performance specifications.

“During this test, conducted with observers from Ambre Energy present, SES achieved carbon conversions of 98% and the gasification process was stable. Although the Zao Zhuang plant was designed for bituminous middlings waste coal, the test results from Ambre’s high ash coal demonstrated once again the flexibility of the SES U-GAS® process to handle a wide range of feedstock compositions, including low rank and high ash content coals,” Francis Lau, Chief Technology Officer of SES, stated in the press release.

Edek Choros, CEO and managing director of Ambre Energy, echoed Lau’s sentiment regarding Synthesis Energy’s technology, and said that as a result of its efficiency, Ambre will continue negotiations for a license agreement with Sythesis Energy.

“Most importantly, we witnessed our coal being gasified at the Zao Zhuang plant in real time. This gave us and our investors in the project added confidence that we can create significant value from our coal reserves,” Choros stated.

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