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Syngas sees production of 14,600 barrels at Clinton Coal-to-Liquid Project

Published: 06:02 03 Aug 2010 AEST

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Syngas (ASX: SYS) has reported the completion of further preliminary engineering design work on the company’s Clinton Project located approximately 120 km northwest of Adelaide in South Australia.

The Project involves the development, commissioning and operation of a large scale, long-term premium diesel production facility.

Syngas is targeting bringing the Clinton Project online in 2015 and operating it for 40 years. The Project has the potential to generate significant returns for shareholders over this time frame in an increasing oil price context.

The Clinton Project centers around the use of proven, above-ground technologies to produce ultra-clean diesel fuel using local conventionally mined lignite/coal.

Merrill Gray, managing director, said completion of this latest work, over three of the six key sections of the plant, has provided a solid basis for Syngas to progress integrated overall process flowsheet modelling, updated capital and operating cost assessments and updated project financial modelling.

There has been post Pre-Feasibility enhanced detail and a greater level of confidence in the project resulting in an updated daily liquid fuel production rate of 14,600 barrels.

The work was completed by UOP LLC, a Honeywell company, and Rentech Inc. (NYSE AMEX: RTK).

Further engineering design completed for three sections of the plant includes gas clean up, gas to liquid synthesis, and liquid upgrading.

The company has been building on past Siemens gasification work. The work has been delivered by proven technology providers - UOP LLC, and Rentech Inc.

There have been advances in the basis of design phase of the Bankable Feasibility Study. The overall integrated process flowsheet modelling is well underway.

Syngas is now updating overall plant capital and operating cost estimates and revising the project financial model incorporating updated capital and operating costs and revenue projections.

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