Zuari Industries invests $5 million in Synthesis Energy Systems
11 Jun 2011
Zuari Industries, the country's largest importer of fertilizers in the private sector, has invested Rs22.31 crore ($5 million) in US-based global energy and gasification technology company Synthesis Energy Systems Inc, in exchange for 2.2 million shares.
Houston-based Synthesis Energy provides technology, equipment and engineering services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products.
Through its proprietary U-GAS fluidised bed gasification technology, which Synthesis Energy licenses from the Gas Technology Institute, it provides technology and equipment in regions where low rank coals and biomass feedstocks can be profitably converted into high value products.
U-GAS gasifies coal cost effectively, without many of the harmful emissions normally associated with coal combustion plants. The primary advantages of U-GAS relative to other gasification technologies are greater fuel flexibility as it uses all grades of coal including low rank, high ash and high moisture coals, which are significantly cheaper than higher grade coals.
Zuari and Synthesis Energy have been investigating business development opportunities where 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, for technical services related to Synthesis Energy projects in India.
