SES’ 95%-owned Hai Hua joint venture project in Shandong Province, China, is its first commercial scale coal gasification plant and has been in operation since January 2008 producing syngas from high ash coal. SES sells its syngas to a nearby customer which converts this syngas into methanol. Methanol can also be synthesized into synthetic gasoline and other chemicals. SES’ second plant is under construction in Henan Province, China, and the company has other projects under development in China and is developing licensing opportunities in the US, India, Australia and other markets.
Pursuant to the alliance agreement, Coalworks has engaged SES to conduct a feasibility study for the CTL plant. Coalworks would enter into a license agreement with SES for the U-GAS technology at the Oaklands site. SES would also provide expertise, designs, plans and cost reduction techniques such as modularization to assist Coalworks with the construction and operation of the plant.
The Oaklands coal resource will be converted into high value gasoline product through the integration of the technologies. In the CTL plant, coal is converted into syngas through the U-GAS clean coal gasification process. The syngas is then converted into methanol and the methanol is synthesized into an ultra-low sulphur gasoline product. This U-GAS process minimizes the traditional pollutants found in coal combustion.
Donald Bunnell, president and CEO of Synthesis Energy Systems – Asia Pacific, said: “Our U-GAS technology is uniquely well suited for the clean and efficient gasification of low-rank coals, like from the Oakland Basin as well as other low rank coals in Australia. This strategic alliance between SES and Coalworks is an important step forward as we grow our technology licensing business outside of China.
“We are looking forward to working with Coalworks as they develop their first CTL plant based on our U-GAS technology and our experience with CTL. Coalwork’s sub-bituminous coal appears to have excellent gasification potential and there is an excellent synergy between our two companies.”
