SinoCoking reports sales of US$5 million
Chinese clean energy products producer, SinoCoking Coal and Coke Chemical Industries Inc., announced that it produced and shipped 51 million m3 of syngas to its first three customers during 1Q15.
The syngas sales totalled over RMB 31 million, or approximately US$5 million. The selling price for syngas delivered during the quarter averaged US$0.10/m3. To date, 98% of receivables from syngas sales have been collected within 30 to 60 days.
LNG production
Commenting on the results, CEO Jianhua Lv, said: "Obviously, we are extremely pleased with the rapid start-up and success of our syngas operations. In less than one year's time, we have transitioned from a traditional coal and coking company into a profitable producer of clean energy products.
“The company's sizeable coal assets, in addition to those provided to us by the local government, will be used to produce syngas while storing carbon dioxide output or recycling it to produce CNG and usable chemical compounds, such as methanol, ammonia, LNG and hydrogen with purity of more than 99.96%."
The company’s plan for the continued build-out of aboveground and underground syngas production facilities will expand total output and is expected to generate ‘significantly higher sales’ in subsequent quarters.
Increased capacity
Mr. Lv noted that all of the recorded syngas sales in 1Q15 were generated by the company's first 25 000 m3/hr production facility. A second aboveground facility of similar size is expected to start deliveries to customers in May and reach full capacity of 25 000 m3/hr of syngas by the end of June 2015.
Additionally, the company has just begun the testing phase on its first underground coal gasification (UCG) unit, which is expected to begin commercial operations with an output of 10 000 m3/hr of syngas in July and scale up to a production capacity of 60 000 m3/hr by the end of 2015.
"SinoCoking aims to be one of China's largest syngas producers. I want to thank our entire team and acknowledge their tireless efforts to help drive SinoCoking to growing levels of success, and at the same time provide our citizens and business communities with an efficient and low-priced source of clean fuel. We believe we are making an important contribution to China's nationwide efforts to reduce environmental pollution and promote better air quality," concluded Mr. Lv.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/regasification/05052015/syngas-sales-strong-in-first-quarter-686/
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