SES New Energy Technologies Co. Ltd. (SES) and Hongye International Investment Group Co., Ltd. (Hongye) have entered into a Memorandum of Understanding (MOU) to supply equipment for a new glycol plant in China.

The MOU agreement was formally signed in Los Angeles, California and relates to a new Hongye 600,000 tonnes per year (tpy) glycol plant in Inner Mongolia, China.

The two parties will collaborate for the supply of SES’ gasification technology, equipment and services.

The large coal-to-chemicals project will be located in the Qianlishan Industrial Zone in Wuhai City, Inner Mongolia, China. Hongye has received pre-approval for this project from the Development and Reform Commission of the Inner Mongolia Autonomous Region, and further approvals required to advance the project are currently being sought.

The total project investment is expected to be approximately RMB 9.5 billion, with construction taking place over a two-year period.

Under the terms of the MOU, Hongye, the largest shareholder of SES, intends to use SES’ Gasification Technology to convert the plant’s low quality coal feedstock into syngas, which will then be converted to glycol.

SES New Energy Technologies (Shanghai) Co., Ltd. is a subsidiary of Synthesis Energy Systems, Inc. (SES), a provider of technology, equipment, engineering and technical services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products.

The SES technology converts coal, in a cost-effective manner, into synthesis gas without many of the harmful emissions normally associated with coal combustion plants.