Synthesis Energy Systems, Inc. (SES) and The North American Coal Corporation (NAC) are conducting a joint pre-feasibility study to explore the development of a coal-based gasification facility utilizing SES’s proprietary U-GAS(R) technology. If constructed, the facility will produce synthetic gasoline, chemical feedstocks and/or synthetic natural gas.
The location for the study is NAC’s Red Hills Mine Operations near Ackerman, Mississippi. Following the completion of the pre-feasibility study, the companies will determine if they will engage in a front-end engineering design study to further develop the opportunity.
With 2.3 billion tons of lignite coal reserves, NAC is the US’ largest miner of lignite coal, and the eighth-largest coal producer nationwide, delivering 33.7 million tons of lignite coal in 2007. Lignite is a high-ash and high-moisture feedstock that is abundant throughout the southern states, in addition to other areas in the United States.
SES owns an exclusive global license for U-GAS gasification technology that has been developed over the past 30 years by the Gas Technology Institute, and can efficiently convert low-rank lignite coals into high value commodity products such as synthetic gasoline and synthetic natural gas.