Synthesis Energy Systems (SES) has said that the Hai Hua plant will use its exclusively licensed U-Gas technology to convert low-rank waste coal into synthesis gas. Hai Hua will use the syngas produced from the coal gasification facility as feedstock for its 100,000-tonne-per-year methanol plant.

SES said that future expansion plans will increase capacity to accommodate planned increases in methanol production by Hai Hua, and to meet other gas and chemical demands.

Tim Vail, president and CEO of SES, said: SES’s ability to economically scale projects, along with the economical and environmental advantages of the U-Gas technology, fits well with China’s rising development needs for additional domestic clean sources of chemical products and transportation fuels.