SinoCoking Coal (SCOK) Sees $10-$15M in 2015 Gross Profit from Syngas Sales

SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK) today said that its gross profit from sales of synthetic gas (syngas) produced at the Company's new clean coal facility in Pingdingshan will be from $10 to $15 million in 2015.

This estimate, said the company, is based upon sales of syngas at an average price of about $0.12 per cubic meter, with 24x7 production and gross margins of approximately 40 percent.

Syngas is a clean-burning fuel that can also be used to produce fertilizers, solvents and assorted synthetic materials. At full capacity, SinoCoking's new facility is expected to produce 25,000 cubic meters of syngas per hour, among the highest outputs in China.

The facility, due to open next month, is also one of the few in China that will capture the considerable volume of carbon dioxide gas (CO2) emitted during the production of syngas. This CO2 will be converted to ammonium bicarbonate, a common farm fertilizer, and sold to various outlets in China, said the company.

"We are proud and excited to be so close to completing this new clean energy facility," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "With its opening, we will make the leap from being a producer of coal and coke products to one of China's top producers of clean-burning fuel.

"This transition, we expect, will both assist our nation in battling its widespread and crippling pollution problems, as well as bring considerably greater value to our shares."

Pending shareholder approval, SinoCoking will be renamed Clean Synthetic Technologies Corp., a name chosen to reflect the Company's new emphasis on the production of clean energy products.

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