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SES And YIMA Establish Project Office At Planned Coal Gasification To Chemicals Plant Site

by Staff Writers
Houston TX (SPX) Mar 25, 2008
Synthesis Energy Systems and YIMA Coal Industry Group have announced the establishment of the joint project office responsible for developing their planned integrated coal gasification to transportation fuels and chemical intermediates plant (the "Plant") in Henan Province, China. SES and YIMA have jointly funded the project office and have assigned a team of experienced managers to oversee the project's development.

"YIMA and SES are targeting the groundbreaking for this project by the middle of this year. The launch of the project office with the strong support from the top leadership of both YIMA and SES is a key step to achieving that goal," stated Tim Vail, President and CEO of SES.

Upon receipt of final project approvals and the execution of definitive agreements, a joint venture company will be established to build, own and operate the Plant which will utilize SES' licensed U-GAS technology to convert low-quality, high-ash coals into syngas and downstream products that will help supply the region's growing needs for transportation fuels and chemical intermediates. With nearly 100 million people, Henan is the most populous province in China and one of China's leading coal and aluminum production centers.

YIMA's President Zhai Yuantao commented, "The establishment of the project office underscores our joint commitment to the construction of this facility and to the greater goal of providing China with a real, alternative energy source that is both environmentally responsible and economically attractive. We look forward to proceeding with this project as quickly as possible."

The primary advantage of U-GAS 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 technology produces 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.

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