PINGDINGSHAN, China, Oct. 20, 2014 (GLOBE NEWSWIRE) -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK), a producer of clean energy products located in Henan Province, today announced that as of the morning of October 18 China time its aboveground facility for the conversion of carbon dioxide into clean-burning syngas had begun operations and was producing and transporting syngas to customers in and around Pingdingshan.
The facility is currently operating at approximately 60 percent of capacity, said the company, and over the next 20 days will ramp up to its full capacity of 25,000 cubic meters of syngas per hour.
"After years of planning and months of construction, we have now moved forward into the commercial phase of our clean energy business plan," said Chairman and CEO Mr. Jianhua Lv. "Through this plan, we are committed to becoming a leading supplier of clean energy to a wide range of industrial and residential customers in Henan Province."
To help accelerate the company's progress, the CEO said SinoCoking is in discussions regarding possible application of a gas compression technology that would allow the new facility to double its output of syngas to 50,000 cubic meters per hour.
The technology, he said, could possibly be implemented by the first quarter of next year.
Syngas, a clean-burning fuel, 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 range of widely-used industrial products such as fertilizers, solvents and assorted synthetic materials.
Gross profit margin on syngas sales at the new SinoCoking facility is expected to be between 45% and 50%, said Mr. Lv.
The CEO added that SinoCoking's other syngas project, an underground coal gasification and carbon capture and storage facility designed to produce 60,000 cubic meters of syngas by March of next year, was expected to commence initial construction by the end of this month.
For additional information on SinoCoking, please go to http://asia-irpr.com/clients/sinocoking/
SinoCoking 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.
For further information about SinoCoking, please refer to our periodic reports filed with the Securities and Exchange Commission.
Forward Looking Statements
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases "plans," "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "think," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of local, regional, and global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
|SinoCoking||Investor Relations Counsel:|
|Song Lv, Chief Financial Officer||Rick Eisenberg, Asia IR•PR.|
|+ 86-375-2882-999||(212) 496-6828|
Source:SinoCoking Coal and Coke Chemical Industries. Inc.