PINGDINGSHAN, China, Jan. 6, 2015 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK), a vertically integrated producer of clean energy products located in Henan Province, today announced it will begin to apply the company's proprietary gas compression and blending technology (CBT) to current syngas operations and to syngas to be produced by the company's underground coal gasification (UCG) technology, with a goal of full implementation of the program by the end of April 2015.
This CBT facility, located in Pingdingshan City, China, will reach an eventual capacity of processing syngas into 35,000 cubic meters of compressed syngas per hour and allow SCOK's gas to be delivered by tankers to more diverse locations in the region. The final product will meet the national 4t (current estimated cost of $0.23/m3, current market sale price of $0.42/m3) and 6t (current estimated cost of $0.30/m3, current market sale price of $0.53/m3) compressed natural gas (CNG) standards. This project is expected to increase coking syngas project gross profits by 27%.
At a conference hosted by the company on December 31, 2014, SCOK CEO Mr. Jianhua Lv reviewed his plans for the introduction of the syngas compression and blending technology with many distinguished guests, including Dr. Wenjun Li of Coal-based Clean Energy Test Center in North China Institute of Science and Technology, the management group of Zhengzhou Coal Industry and Electronic Power Co., and government officers from Linying City.
Mr. Lv said that, based upon successful completion of the CBT facility, the company will consider applying and/or licensing its compression and blending capabilities to syngas production facilities in other parts of China.
Mr. Lv also said that SCOK plans to open a sales office in Linying - located 120 km from Pingdingshan - to market its products to customers in those areas currently without pipeline access to the company's syngas output. "When both above and below ground facilities are functioning at full capacity, with the compression and blending features in place, SCOK will be making a significant contribution to servicing the region's energy needs. We believe our success locally can position the company to expand that contribution, over time, throughout Henan Province."
As a clean-burning fuel, syngas is increasingly utilized as a clean-energy alternative to burning coal. Comprised primarily of hydrogen and carbon monoxide, syngas can also be used to produce a wide range of industrial products such as fertilizers, solvents, liquid natural gas (LNG), CNG, and assorted synthetic materials. The company believes its new aboveground facility is the only one in China that combines coking and syngas in parallel.
For additional information on SinoCoking, please go to http://www.scokchina.com or refer to the company's periodic reports filed with the Securities and Exchange Commission (http://www.scokchina.com/sec-filings.html). Investors wishing to receive SinoCoking's corporate communications as they become available may go to the company's Investor Relations site (http://www.scokchina.com/corporate-overview.html) and register under Email Alerts.
Also, investors may submit questions directly to Mr. Lv and his staff to receive non-confidential information about the company's operations and products at the company's "Ask Management" blog (http://www.scokchina.com/ask-management.html).
About SinoCoking
SinoCoking Coal and Coke Chemical Industries, Inc. (www.scokchina.com), a Florida corporation, is an emerging producer of clean energy products located in Pingdingshan, Henan Province, China. The company has historically been a vertically-integrated coal and coke processor of basic and value-added coal products for steel manufacturers, power generators, and various industrial users. SinoCoking has been producing metallurgical coke since 2002, and acts as a key supplier to regional steel producers in central China. SinoCoking also produces and supplies thermal coal to its customers in central China. SinoCoking currently owns its assets and conducts its operations through its subsidiaries, Top Favour Limited and Pingdingshan Hongyuan Energy Science and Technology Development Co., Ltd., and its affiliated companies, Henan Province Pingdingshan Hongli Coal & Coke Co., Ltd., Baofeng Coking Factory, Baofeng Hongchang Coal Co., Ltd., Baofeng Hongguang Environment Protection Electricity Generating Co., Ltd., Zhonghong Energy Investment Company, Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd., Baofeng Shuangri Coal Mining Co., Ltd., and Baofeng Xingsheng Coal Mining Co., Ltd.
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