Synthesis Energy Systems’ subsidiary, SES New Energy Technologies (Shanghai), has entered into a MOU with Hongye International Investment Group for the supply of SES’ gasification technology, equipment and services to Hongye’s 600,000t per year glycol plant to be built in the Inner Mongolia Autonomous Region of China. This large coal-to-chemicals project will be located in the Qianlishan Industrial Zone in Wuhai City, Inner Mongolia, China.
Hongye has received pre-approval for this project from the Development and Reform Commission of the Inner Mongolia Autonomous Region, and further approvals required to advance the project are currently being sought. The total project investment is expected to be approximately RMB 9.5B, with construction taking place over a two-year period. Under the terms of the MOU, Hongye, the largest shareholder of SES, will use SES’ gasification technology to convert the plant’s low-quality coal feedstock into syngas, which will then be converted to glycol.
Both companies agreed to work exclusively on this project for the next 12 months while the technology licensing, equipment supply and technical service agreements are completed. During this period, Hongye will be managing the development of the project, including obtaining the remaining necessary government approvals.
