Synthesis Energy Systems Offers Update on Progress at Three New Aluminum Corp. 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 its Tianwo-SES Clean Energy Technologies Company Joint Venture reports continued significant progress at the $105-million natural gas replacement projects under construction for Aluminum Corporation of China Limited

(HKEx:2600) (SSE:601600). The initial facility in Zibo City, Shandong Province, which entered the commissioning phase in June 2015, has now successfully achieved initial syngas manufacturing and is expected by Tianwo-SES to be achieve design capacity operations and be fully completed in August 2015. The facility, which features two SES Gasification Technology systems designed by Tianwo-SES, will then complete its final acceptance. Additionally, Tianwo-SES reports that the Shanxi project, which contains one SES gasification system, is expected to enter commissioning this summer; the Henan project, which contains four SES gasification systems, is expected to enter commissioning in the fourth quarter of 2015. "It is encouraging to be this far through the commissioning phase so quickly on the first Aluminum Corporation of China project in Zibo City. SES is pleased to be onsite with our operating team from ZZ, supporting the effort," stated Robert W. Rigdon, President and CEO of Synthesis Energy Systems. "I believe the speed of deployment and compact nature of the designs for these natural gas replacement projects is a large step forward toward providing lower cost pre-fabricated gasification island components and modules which can speed up construction time providing advantages for both ourselves and our customers. These factors clearly demonstrate our advanced technology's ability to be constructed efficiently and at lower cost and we consider this a milestone game-changer supporting our Growth With Blue Skies initiative which we intend to grow through Tianwo-SES, to win more projects in China and globally." 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 design institute of SES' China JV partner, Suzhou Thvow Technology Co., Ltd. (STT) (Shenzhen listing code: 002564), and serves as the general contractor supplying the engineering, construction and balance of plant equipment for the three projects. The seven SES Gasification Technology (SGT) systems are supplied by Tianwo-SES, and represent the JV's first technology and equipment supply order, estimated to be approximately $23 million. "The CHALCO Shandong project began in January and quickly completed the gasification structure design and started the second gasifier manufacturing by mid-March. All the related coal feeding, coal gasification, gas cleaning, environmental and other common engineering systems completed in May and the gasification system was first operated in June. This commissioning is demonstrating the advantaged capabilities of the SES Gasification Technology and of Tianwo-SES," stated Chen Yu Zhong, Chairman of Suzhou Thvow Technology. "These three projects represent the successful beginning of our Tianwo-SES joint venture with SES and, with this success, our coal-to-gas turnkey business has entered a new stage. We are now building a pipeline of future projects, and will build on this success to win more projects quickly and grow the value of our business." The Zibo City project in Shandong Province, which utilizes two SES gasification systems, has successfully completed the "A" system testing with 168 hours of operation. The "B" system initiated testing last week and is scheduled to also complete a minimum of 168 hours of operational testing. The final construction phase, to complete the air separation plant which produces oxygen for the gasifiers, is underway and expected by Tianwo-SES to be completed in August. At that time, SES' Joint Venture expects to operate both A and B systems simultaneously and prepare for final acceptance. SES Gasification Technology is uniquely capable of generating clean and economical syngas from local low-grade lignite coal, to replace the purchase of more expensive natural gas for myriad energy and chemical industries, including aluminum. Once the three Aluminum Corporation of China projects enter commercial operation, the installed base for SES Gasification Technology will expand from five to 12 gasification systems in operation in China.