Synthesis Energy Systems, Inc. Announces Commissioning Phase at First of Three Aluminum Corporation of China Industrial Syngas Gasification Plants

Synthesis Energy Systems, Inc. (SES)

, a global energy and gasification technology company enabling clean, high-value energy and chemical products from multiple feedstocks, announced that the first of three previously announced industrial syngas gasification plants from its Tianwo-SES Joint Venture has entered the commissioning phase. The plant, in Zibo City, Shandong Province, China, is owned and operated by Aluminum Corporation of China Limited

(HKEx:2600) (SSE:601600), and utilizes two SES Gasification Technology systems supplied by Tianwo-SES. These gasification systems are uniquely suited to generate clean and economical syngas from local, low-grade lignite coal which will replace the purchase of more expensive natural gas. The Shandong facility is projected to enter commercial operation this year. The two additional Aluminum Corporation of China plants, in Shanxi and Henan Provinces, are currently under construction in a phased, fast-track timeline. Once all three projects enter commercial operation, the installed base for SES Gasification Technology will expand from five to 12 gasification systems in operation in China. Total construction order commitments of $105 million (650 million Yuan) for the three projects were announced in December 2014 between Aluminum Corporation of China, China's largest alumina and primary aluminum producer, and Innovative Coal Chemical Design Institute (Shanghai) Co., Ltd. (ICCDI). ICCDI is the general contractor supplying all the engineering, construction and balance of plant equipment for the three projects. The total order value for these projects to Tianwo-SES for technology and equipment supply from ICCDI, a subsidiary of Suzhou Thvow Technology Co., Ltd. (STT) (Shenzhen listing code:002564), is expected to be $23 million. Tianwo-SES Clean Energy Technologies Co., Ltd. (Tianwo-SES) is SES's joint venture with STT. "Late last year, China Shandong Aluminum Industry Branch, Henan Branch and Shanxi Aluminum Co., Ltd. contracted ICCDI to build these three important projects. Through great cooperation of all the parties, the Shandong Aluminum Project is now the first to begin commissioning and is driving for fast completion. Securing these three major China Aluminum projects is taking Suzhou Thvow Technology from a high-end equipment manufacturer to now include technology, research and development, and engineering services, to provide one total high-tech package solution for clean energy. With our partner SES, our Tianwo-SES company is driving to become a world leader in clean energy technology," stated STT Chairman Chen Yu Zhong. "The ICCDI and Tianwo-SES teams are to be commended for accomplishing this very fast project execution schedule and achieving this six-month commissioning milestone. These first orders are expected to deliver the first significant revenues to Tianwo-SES, and the speed and ease of construction demonstrates the turnkey simplicity of deploying the advanced SES Gasification Technology," said DeLome Fair, President of SES Technologies, LLC. "These plants are expected to be the model for future projects in the growing natural gas replacement market in China. Based on our analysis, we believe the estimated cost savings to Aluminum Corporation of China at the Shandong plant alone will be in the order of $50,000 per day. "We are making good traction in China and congratulate our China JV partner, Suzhou Thvow Technology, on securing the award for these groundbreaking projects. We believe replacement gas, which enables Growth With Blue Skies, represents a significant market segment for new plants and the retrofit of large numbers of existing facilities in the region, supplying clean and economical fuel gas to numerous industries. Tianwo-SES reports seven similar projects in its growing pipeline," added Ms. Fair.