SinoCoking Coal and Coke Chemical Industries Completes Equipment and Systems Installation at New Syngas Facility

PINGDINGSHAN, CHINA--(Marketwired - Jul 15, 2014) - SinoCoking Coal and Coke Chemical Industries, Inc. (NASDAQ: SCOK) ("the Company" or "SinoCoking"), a vertically-integrated coal and coke processor, today said that the installation of all equipment and systems at the Company's green facility for the conversion of carbon dioxide into a clean-burning synthetic gas (syngas) has been completed, and that the 60-day testing and calibration phase -- the final phase prior to commencement of operations -- has begun.

Originally scheduled to last for one month, the installation of gas furnaces, electrical instrumentation, and material transporting, dust removal and cooling/purification systems was completed in only 23 days -- placing the facility on target to begin initial production of syngas in mid-September.

At full capacity, the facility is expected to produce 25,000 cubic meters of syngas per hour, among the highest outputs of any syngas plant in China.

As previously announced, gross profit margin on syngas sales is expected to be between 45 and 50 percent, significantly higher than any other current SinoCoking product.

"We are thrilled to be ahead of schedule on our construction progress," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "Thanks to the efforts of our engineering contractor, Lin Yu Jian Group, our vision for this facility is rapidly coming to fruition."

Lin Yu Jian, a leading engineering contracting company based in Henan Province, has assigned over 160 workers to the project.

In the testing and calibration phase, said Mr. Lv, all of the facility's equipment and systems will be monitored to optimize their performance both individually and in tandem with other equipment and systems. This work, he said, will be performed by engineers and technology specialists with both Lin Yu Jian and SinoCoking, and will follow the strict guidelines applicable to syngas projects of this size. 

"Once this work is complete," said Mr. Lv, "we will be ready to enter the final phase, which is the trial production of syngas at our facility. We would expect to progress to full production of syngas in a reasonably short time."

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.