Synthesis Energy Systems Announces $5.0 Million Strategic Equity Investment from Zuari Industries Limited of India
Collaboration Investigating Opportunities for SES U-GAS® Coal Gasification Projects in India
HOUSTON, June 10, 2011 /PRNewswire/ — Synthesis Energy Systems, Inc. (Nasdaq: SYMX) (“SES”), a global energy and gasification technology company that provides products and solutions to the energy and chemicals industries, announced today a $5.0 million strategic investment from Zuari Industries Limited (“Zuari”) of India in exchange for approximately 2.2 million shares of SES common stock. Zuari is one of India’s leading industrial companies in the fertilizer sector.
SES and Zuari have been investigating business development opportunities where SES’ U-GAS® technology for coal gasification can be integrated into industrial projects in India, including the potential for application of the U-GAS® technology in Zuari’s own industrial plants and potential plant expansions. SES and Zuari have also been working together to use Zuari’s wholly-owned engineering company, Simon India Limited (“Simon”), for technical services related to SES projects in India.
“Establishing this relationship with Zuari to help drive our opportunities in India is another important validation of our technology and a further execution of our business strategy,” stated Robert Rigdon, President and CEO of SES. “We and Zuari believe the U-GAS® gasification technology of SES could have widespread applications across the Indian economy. India is among the world’s fastest-growing economies and the country’s need for fertilizers for its agricultural industry, other basic chemicals, clean energy products such as synthetic natural gas for residential and industrial uses, transportation fuels, and clean electric power, is rapidly increasing. We appreciate this recognition of our technology’s potential for application in India.”
“Coal is an abundant natural resource that is becoming even more critical in helping India achieve its ambitious growth objectives over the coming years. With potential shortfalls and price increases for natural gas, higher oil prices due to unrest in the Middle East and fresh concerns over the safety of nuclear energy, clean-coal technology is becoming even more attractive,” commented H.S. Bawa, Vice Chairman of Zuari. “We have worked with SES to assess the potential for SES’ technology in India and are now convinced of the unique opportunity this technology presents. We look forward to continuing to work with our colleagues at SES to drive project development and accelerate adoption of SES’ leading gasification technology for the benefit of the people of India.”
About Synthesis Energy Systems, Inc.
SES 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. For more information on SES, visit www.synthesisenergy.com or call (713) 579-0600.
About Zuari Industries Limited
Zuari Industries Limited is the flagship company of one of India’s oldest and most respected industrial houses, promoted by Dr. KK Birla – recently re-branded as Adventz under the leadership of Mr. Saroj Poddar, Group Chairman of Adventz Group. Advents Group includes Zuari Industries and Texmaco, and as many as 21 group entities, straddling fertilizer, heavy industry, engineering services (Simon India, Ltd), real estate and furniture retail. The Group is primarily focused in India, but also operates internationally. As a major producer of fertilizers for India, it is also the country’s largest importer of fertilizers in the private sector, and has joint ventures with OCP of Morocco and ICL of Israel.
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