Advanced Biofuels

Synthesis Energy Systems to Assess Feasibility of MSW Gasification For Green Chemicals Production

Date Posted: January 16, 2013

Houston—Synthesis Energy Systems, Inc. (NASDAQ: SYMX) has entered into an agreement with an undisclosed U.S.-based company to assess the feasibility and optimal uses of SES' gasification technology for the production of valuable 'green' chemicals.

The agreement calls for SES to lead an engineering study, commissioned and funded by the undisclosed U.S. company, that will define an optimal use of potential feedstock combinations that may include used tires, auto shredder residue and refuse-derived fuel to efficiently and cost-effectively produce commercially viable chemicals such as methanol and methanol derivatives.

The plants being contemplated are expected to have an attractive environmental footprint as they would process these waste streams with an exceptionally low emissions profile.

In addition, these plants have the potential to include nearly complete carbon capture capability.

SES will be assisted in this effort by Fluor Enterprises, a leading global engineering, procurement, maintenance and construction company.

"We believe that our technology offers the ability to cleanly use these waste and landfill materials in an environmentally responsible way to produce a variety of high value products.

"Through our development efforts with potential US partners last year we believe production of chemicals from these materials can provide a unique and economically attractive 'green chemical' solution," stated Robert Rigdon, president and CEO.

"Such an approach offers an avenue for reduction in the carbon footprint of many of the chemical derived products we use every day.

"Together with Fluor, we plan to use our in-house expertise, intellectual property, and operations experience and to complete the study, which we are hopeful, could form the basis of a technology, equipment and services supply business to meet this growing need."

Due to the confidentiality agreements in place and competitively sensitive information, SES is not able to divulge further details regarding the agreement.

The study is expected to last four months.

Following the successful completion of this study, SES hopes to advance to the next steps with this important potential partner.

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