SES' Shandong JV plant begins syngas ops, sales

27 February 2008 08:18  [Source: ICIS news]

MUMBAI (ICIS news)--Synthesis Energy Systems’ 95%-owned Chinese joint venture with Shandong Hai Hua Coal & Chemical Co has commenced synthesis gas (syngas) sales after the plant recently began operations, the US coal gasification firm said on Wednesday.

"With all process units commissioned, including both gasifiers, the plant is now operating in a pure oxygen-blown mode using locally-sourced, high-ash coal as feedstock to produce syngas," the energy and technology company added.

The syngas is in turn being used by Hai Hua as feedstock for manufacturing methanol, SES said.

Sales operations started up on 19 February, while it has been producing syngas with only minor interruptions since 7 January. "Over the next few weeks the Hai Hua plant is expected to optimize its process units," it added.

Future expansion plans for the Hai Hua plant in eastern Shandong province are being developed to increase capacity to accommodate planned hikes in methanol production, it said.

"Our execution continues with the construction of a second plant in China and two projects under development - one in China and one in the US," said SES president and CEO Tim Vail.

The company will continue targetting projects globally that are close to the fuel source, easily expandable and developed with well capitalised partners, he added.

By: Divya Chowdhury
+65 6780 4359

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