Synthesis Energy Systems, Inc. (Nasdaq: SYMX) (“SES”), a global energy and gasification technology company that provides products and solutions to the energy and chemicals industries, announced today a $5.0 million strategic investment from Zuari Industries Limited (“Zuari”) of India in exchange for approximately 2.2 million shares of SES common stock. Zuari is one of India’s leading industrial companies in the fertilizer sector.
SES and Zuari have been investigating business development opportunities where SES’ U-GAS® technology for coal gasification can be integrated into industrial projects in India, including the potential for application of the U-GAS® technology in Zuari’s own industrial plants and potential plant expansions. SES and Zuari have also been working together to use Zuari’s wholly-owned engineering company, Simon India Limited (“Simon”), for technical services related to SES projects in India.
“Establishing this relationship with Zuari to help drive our opportunities in India is another important validation of our technology and a further execution of our business strategy,” stated Robert Rigdon, President and CEO of SES. “We and Zuari believe the U-GAS® gasification technology of SES could have widespread applications across the Indian economy. India is among the world’s fastest-growing economies and the country’s need for fertilizers for its agricultural industry, other basic chemicals, clean energy products such as synthetic natural gas for residential and industrial uses, transportation fuels, and clean electric power, is rapidly increasing. We appreciate this recognition of our technology’s potential for application in India.”
“Coal is an abundant natural resource that is becoming even more critical in helping India achieve its ambitious growth objectives over the coming years. With potential shortfalls and price increases for natural gas, higher oil prices due to unrest in the Middle East and fresh concerns over the safety of nuclear energy, clean-coal technology is becoming even more attractive,” commented H.S. Bawa, Vice Chairman of Zuari. “We have worked with SES to assess the potential for SES’ technology in India and are now convinced of the unique opportunity this technology presents. We look forward to continuing to work with our colleagues at SES to drive project development and accelerate adoption of SES’ leading gasification technology for the benefit of the people of India.”