PINGDINGSHAN, China, Jan. 6, 2015 (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 it will begin to apply the company's proprietary gas compression and blending technology (CBT) to current syngas operations and to syngas to be produced by the company's underground coal gasification (UCG) technology, with a goal of full implementation of the program by the end of April 2015.
This CBT facility, located in Pingdingshan City, China, will reach an eventual capacity of processing syngas into 35,000 cubic meters of compressed syngas per hour and allow SCOK's gas to be delivered by tankers to more diverse locations in the region. The final product will meet the national 4t (current estimated cost of $0.23/m3, current market sale price of $0.42/m3) and 6t (current estimated cost of $0.30/m3, current market sale price of $0.53/m3) compressed natural gas (CNG) standards. This project is expected to increase coking syngas project gross profits by 27%.
At a conference hosted by the company on December 31, 2014, SCOK CEO Mr. Jianhua Lv reviewed his plans for the introduction of the syngas compression and blending technology with many distinguished guests, including Dr. Wenjun Li of Coal-based Clean Energy Test Center in North China Institute of Science and Technology, the management group of Zhengzhou Coal Industry and Electronic Power Co., and government officers from Linying City.
Mr. Lv said that, based upon successful completion of the CBT facility, the company will consider applying and/or licensing its compression and blending capabilities to syngas production facilities in other parts of China.
Mr. Lv also said that SCOK plans to open a sales office in Linying - located 120 km from Pingdingshan - to market its products to customers in those areas currently without pipeline access to the company's syngas output. "When both above and below ground facilities are functioning at full capacity, with the compression and blending features in place, SCOK will be making a significant contribution to servicing the region's energy needs. We believe our success locally can position the company to expand that contribution, over time, throughout Henan Province."
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, liquid natural gas (LNG), CNG, and assorted synthetic materials. The company believes its new aboveground facility is the only one in China that combines coking and syngas in parallel.
For additional information on SinoCoking, please go to http://www.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.