Boston, MA 10/09/2014 (wallstreetpr) – SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) initiated the underground coal gasification (UCG) / carbon capture and storage (CCS) project for the construction and production of clean-burning syngas.
UCG / CCS project
SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) is constructing the initial phase close to the existing four mines at the Henan Province by utilizing the patented UCG and CCS processes. The company received the exclusive rights to use the technologies that owned by the North China Institute of Science and Technology and the Institute of Process Engineering, Chinese Academy of Sciences.
Dr. Wenjun Li from the North China Institute of Science and Technology received the patent after spending 11 years in development and testing of the technologies against pollution and global warming. Both the processes invented to prevent groundwater contamination from toxic substances that resulted from non-specialized technologies.
Dr. Li also suggested that the process will monitor and control the temperature of gases released through the wells and only possible by utilizing the automated systems, patented technology, and specialized gratification agents.
Dr. Li said that SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) would be an ideal partner who already had a strong infrastructure at Henan province to support the construction base for syngas. Moreover, the county Government supported the long-term commitment of SinoCoking and their upcoming projects.
SinoCoking’s CEO Jianhua Lv said that the association with two technology partners and their research will help the company to utilize the UCG/CCS technology to create a clean environment.
Funding
SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) plans to invest $18 million for the initial phase and finances through the available cash flow ($6 million), bank loans ($6 million) and proceeds ($6 million) from its recent equity offering ($14 million).
The initial phase of construction will commence in October 2014 and expect to complete by March 2015 and anticipates a production of 60,000 cubic meters of syngas per hour.
Mr. Jianhua also estimates the cost of $280 million for the subsequent phases of the project, which expect to produce 880,000 cubic meters of syngas per hour and funds through a mix of cash and loans.
