Boston, MA 06/19/2014 (wallstreetpr) – SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) has provided an update on a facility that is easily one of its kind in China. In a statement sent to newsrooms, the company said that the construction of its facility targeted at converting carbon dioxide into clean-burning synthetic gas (Syngas), is complete, and the facility will be up and running in the fourth quarter of 2014.
The completed facility is the initial phase of the company’s environmentally-friendly energy installations in China where there is a strong and growing demand for clean energy. The Chinese government is in an all-out war to cripple air pollution and greenhouse emissions, and it is encouraging and even supporting the adoption of clean energy.
The government policy has opened up opportunities for companies and investors in wind and solar power solutions to meet the huge demand for clean energy in the area. While SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) built itself as a coal and coke company, and it has adopted innovative technologies that enable it to convert what would otherwise be unclean energy into a clean source of power.
The syngas facility
With the construction of the facility complete, the company is currently installing gas furnaces, consoles, electrical equipment, dust removal system, cooling/purification systems and transportation system. The installations are expected to be done within one month after which adjustment and calibrations will be done within two months. Once everything is set in place, the facility will commence operations, which should not be later than this year.
Executive comment
There appears to be many benefits that the company expects from its new syngas facility. According to President and CEO Jianhua Lv, the facility is first of all going to support the Chinese government policy towards creating friendly-energy solutions. Furthermore, there are huge opportunities in syngas business. The executive noted that syngas sales give gross profit margins between 45 and 55 percent, which is far higher than any of the products the company sells.
As such, he expects the new facility will lead to double gain in terms of higher revenue and profits for SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK).
