PINGDINGSHAN, China, Dec. 4, 2014 (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 that it had begun construction of its second aboveground facility for the conversion of carbon dioxide into clean-burning syngas. Located at the site of the company's recently completed syngas production facility in Pingdingshan, this second facility is expected to double total syngas output to 50,000 cubic meters per hour from the current 25,000 cubic meters per hour.
Notwithstanding delays attributable to poor weather conditions during the winter months, SinoCoking expects construction of the second facility to be completed by the end of March 2015.
Based on the current price of $0.139 per cubic meter for syngas, the gross revenue generated per day by both aboveground facilities operating at full capacity would be approximately $165,000 USD. Gross profit margin is expected to be between 45% and 50%.
"Doubling syngas output at the Pingdingshan aboveground site is only half the story," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "While the 25,000 cubic meters per hour being produced today is delivered to customers through pipelines, this new facility expansion will produce gas that can be stored in tanks and sold to customers as Compressed Natural Gas (CNG), thus giving us greater flexibility in terms of storage and delivery. We will be able to materially expand our customer base both by number and by geography."
Mr. Lv noted that the company's CNG technology has been jointly developed over the past 5 years by SinoCoking and the Process Engineering Institute of China Academy of Sciences. "When implemented," he added, "it is our understanding that it will be the first of its kind in China."
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, LNG, CNG, and assorted synthetic materials.
The company believes it is one of China's first aboveground syngas facilities that can recycle carbon dioxide output to produce usable chemical compounds, in addition to being the only one in China that combines coking and producing syngas in parallel.
For additional information on SinoCoking, please go to http://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).
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.
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.
CONTACT: SinoCoking Song Lv, Chief Financial Officer + 86-375-2882-999 email@example.com http://www.scokchina.com/ Investor Relations Counsel: Jimmy Caplan, Asia IR-PR +1-512-329-9505 firstname.lastname@example.org http://asia-irpr.com/Source:SinoCoking Coal and Coke Chemical Industries. Inc.