QualityStocks would like to highlight Synthesis Energy Systems, Inc. (NASDAQ: SYMX). The company provides technology, equipment, and engineering services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products. Its strategy is to create value through providing technology and equipment in regions where low rank coals and biomass feedstocks can be profitably converted into high value products through its proprietary U-GAS® fluidized bed gasification technology, which SES licenses from the Gas Technology Institute. U-GAS® gasifies coal cost effectively, without many of the harmful emissions normally associated with coal combustion plants. The primary advantages of U-GAS® relative to other gasification technologies are (a) greater fuel flexibility provided by the ability of SES to use all ranks of coal (including low rank, high ash and high moisture coals, which are significantly cheaper than higher grade coals), many coal waste products and biomass feed stocks; and (b) the ability of SES to operate efficiently on a smaller scale, which enables the construction of plants more quickly, at a lower capital cost, and, in many cases, in closer proximity to coal sources. SES currently has offices in Houston, Texas, and Shanghai, China.
In the company’s news yesterday, Synthesis Energy Systems reported positive lab-scale output data, with the completion of testing on three Turkish lignite coal targets earmarked for clean coal power generation projects.
Under development by one of Turkey’s largest independent power project (IPP) developers, Tuten Ltd., the clean coal infrastructure development is being sponsored by a major Turkish utility company intent on modernizing their production footprint. Also part of the project will be Slovakian EPC firm (engineering, procurement, and constriction), Istroenergo Group.
The testing was performed by SYMX at the Des Plaines, Illinois, laboratories of Gas Technology Institute (from whom the company licenses U-GAS), showing 96 to 99.5% single-pass carbon conversions rates on each of the coals.
This is superb news for the project development team, which has devised an ingenious conceptual-level design to provide 50 to 100 MW generation modules based on the cheap, abundant lignite coal. The genius of the design stems from a powerful integration of the gasification technology with a General Electric LM2500+G4 aeroderivative gas turbine.
The amazing diversity, industrial-quality robustness, and general availability provided by GE’s LM2500+G4 turbine is ideal for this sort of syngas application and the SYMX technology is at the heart of the development team’s solution. With viability data in hand, the company is all the more eager to move the project forward, encouraged by a team assembled of some of the top players in the region/sector.
Founding partner of Turkish IPP giant Tuten, Tarik Tuten, hailed the successful testing as a clear sign that advancement to the next stage of the project for Tuten’s utility customer in Turkey will be seen by the sponsor/stakeholders as something in which they can easily place their confidence. Tuten brings a mountain of expertise developing gas-fired IPPs in the 120 to 1200 MW range to the clean coal space and with turn-key versatility experts Istroenergo also on board, it’s no wonder the development team (and their solution) is already drawing accolades.
President and CEO of Aeroderivative Gas Turbines for GE Power & Water, Darryl Wilson, was very pleased to see this perfect use of the LM2500+G4 turbine, for completing the syngas loop from low grade lignite coal, tipping his hat to this winning solution the team has devised.
It’s huge news for SYMX really and the sector as well; after all, such low grade coal like this Turkish lignite is abundant all over the planet, affording generally low recovery costs as well. There is a massive market for such solutions and the underlying dynamics are exceptionally attractive, from lowering dependency on imported energy sources, to better overall domestic resource utilization, and the squeaky clean environmental profile is hard to beat.
South Africa and Turkey are perfect markets for the kinds of solutions being put together by the team around GE technology and the incredible advancements made possible by SYMX’s U-GAS technology are still just the first steps of a better, cleaner, and more efficient energy future. Because the U-GAS technology has a maximum fuel window, able to process all ranks of coal, including coal waste and biomass/feedstock, and is engineered for smaller scale applications, the technology can roll out very fast. Rapid development of such critical infrastructure in developing markets around underutilized, available resources is a recipe for serious revenue momentum.
QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.
To sign up for The QualityStocks Daily Newsletter, please visit www.QualityStocks.net
Please read FULL disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.net
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.