...see post replying to... http://finance.yahoo.com/news/sinocoking-begins-construction-second-aboveground-123000195.html Based on the current price of $0.139 per cubic meter for syngas, the gross revenue generated per day by both aboveground facilities operating at full capacity would be approximately $165,000 USD. Gross profit margin is expected to be between 45% and 50%.
"Doubling syngas output at the Pingdingshan aboveground site is only half the story," said SinoCoking Chairman and CEO Mr. Jianhua Lv. "While the 25,000 cubic meters per hour being produced today is delivered to customers through pipelines, this new facility expansion will produce gas that can be stored in tanks and sold to customers as Compressed Natural Gas (CNG), thus giving us greater flexibility in terms of storage and delivery. We will be able to materially expand our customer base both by number and by geography."
Mr. Lv noted that the company's CNG technology has been jointly developed over the past 5 years by SinoCoking and the Process Engineering Institute of China Academy of Sciences. "When implemented," he added, "it is our understanding that it will be the first of its kind in China."
As a clean-burning fuel, syngas is increasingly utilized as a clean-energy alternative to burning coal. Comprised primarily of hydrogen and carbon monoxide, syngas can also be used to produce a wide range of industrial products such as fertilizers, solvents, LNG, CNG, and assorted synthetic materials.
The company believes it is one of China's first aboveground syngas facilities that can recycle carbon dioxide output to produce usable chemical compounds, in addition to being the only one in China that combines coking and producing syngas in parallel.
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