PINGDINGSHAN, China, Jan. 7, 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 issued an update for investors regarding the company's Underground Coal Gasification (UCG) project. According to the company's Chairman and CEO, Mr. Jianhua Lv, the project is on schedule and expected to start producing syngas in March 2015.
At a meeting with Dr. Wenjun Li of the coal-based Clean Energy Test Center in North China Institute of Science and Technology, Mr. Lv reported that the drilling of five out of six exploration wells for the first phase of the project has been completed. The construction process will begin shortly following the drilling of the sixth exploration well. When fully functioning, UCG phase one will have the capacity to produce 60,000 m3/h of syngas.
SCOK has posted an animated video explaining Underground Coal Gasification on its website, www.scokchina.com.
The UCG project is being guided by Dr. Wenjun Li's R&D team. Dr. Li and SCOK co-own the patented technology rights and SCOK has exclusive rights to use the technology within Henan province.
With 10,000 m3/h gas output per unit, or 60,000 m3/h for the six planned units in phase one, SCOK's UCG project will require an investment of $3 million USD per unit, or a total of $18 million. The expected cost of production of syngas will be $0.02/m3, and the current sales price in the market is $0.10/m3. The syngas produced - a combination of carbon monoxide and hydrogen which will be used for power generation and for producing compressed natural gas (CNG), liquid natural gas (LNG) and various chemicals - is expected to add significantly to SCOK's gross profit and bottom line. The gas compressed through SCOK's proprietary Compression and Blending Technology (CBT) will allow for storage and shipping in containers by rail or truck.
As announced previously, CBT-related sales to customers throughout the region will be handled by a sales office to be opened in Linying, which is 120 km from Pingdingshan.
"It is truly exciting to see both the above and below ground syngas facilities moving forward, and now with the addition of the CBT feature to help expand our customer base," concluded Mr. Lv. "We remain focused on providing clean energy solutions to promote a healthier environment for China."
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.