Houston, Texas – Texas-based Synthesis Energy Systems (SES), a global industrial gasification company, has announced that it has entered into a joint venture with Chinese coal company YIMA Coal Group for the development of a coal gasification plant to feed the production of transportation fuels and chemicals intermediates in Henan Province, China. The agreement includes a provision whereby YIMA will guarantee the debt financing for the plant; SES expects this guarantee will allow financing to be obtained from domestic Chinese banking sources.

The preliminary estimate of required capital is approximately US$350 million, with SES holding a 49 per cent interest and YIMA the remaining 51 per cent.

The plant will use SES’ licensed U-GAS technology to convert low-quality, high-ash sub-bituminous coal into syngas and downstream products that will help supply the region’s growing needs for transportation fuel and chemicals. Phase one of the plant is designed to process 2,000 tonnes of sub-bituminous coal into syngas. If a second phase is constructed, it is expected to double the design output. The primary advantages of U-GAS relative to other gasification technologies is its overall low cost. The technology products lower levels of regulated emissions than conventional coal combustion plants, including sulphur oxides, nitrous oxides and particulates, and allows for the low-cost capture of greenhouse gases.

Connect with Autos.ca