Synthesis Energy Systems, Inc. (NASDAQ SYMX)
Synthesis Energy Looking to Build a Hydrogen Plant
Synthesis Energy Systems, Inc. (NASDAQ: SYMX) is anticipating building a hydrogen plant. That is keeping in mind the end goal to make hydrogen with its syngas innovation. To be clear, syngas is coal gasification and has been around in mechanical frame since the 1940s, it’s not new. Here is a history on coal gasification. To experience all that time and cost to manufacture a coal gasification hydrogen plant is a senseless attempt. This could never be done in the US, and shouldn’t be done in China either. The most ideal approach to deliver hydrogen is from characteristic gas.
Characteristic gas is currently the least expensive it has been in quite a while, and that is likewise the case in China. Air Liquide is a major maker of hydrogen in China. Here it states they utilize a Steam Methane Reformer (SMR) in their China plant to make hydrogen. Steam changing is taking common gas and isolating the carbon from the hydrogen to create immaculate hydrogen. Praxair is additionally a main modern gas provider for China and produces hydrogen from regular gas.
The main issue, is that if SYMX innovation was so awesome and better than characteristic gas, it would be gained by a Chinese vitality firm. Truth be told, one of SYMX’s joint endeavors, Tianwo-SES, even offers gear for the syngas innovation all over Asia. Be that as it may, there’s rare enthusiasm for it, as appeared in their incomes. See our last article for a table of their quarterly incomes in the course of recent years. Besides, there is as of now a great deal of coal gasification innovation out there, as from GE, KBR, and other substantial firms.
Besides, what US financial specialists would support this venture? They can’t weaken SYMX stock to get $55M, the market top is scarcely over that.
In any case, how about we again assume the best about SYMX, and expect they do raise the cash for the main venture. At that point they assemble it which will probably take several years. Presently they have another coal gasification hydrogen plant that will probably be another cash washout like their methanol plants. That will put shareholders much further submerged.