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News and Announcements

Successful Fund Raising for Clean Power Company, BioSyngas Pty Ltd

  • Published October 17, 2012 10:43AM UTC
  • Publisher Wholesale Investor
  • Categories Company Updates

Syngas Limited’s (Syngas) [ASX: SYS] Board of Directors is pleased to announce that $500,000 has been raised successfully for Syngas’ renewable/clean energy subsidiary company, BioSyngas Pty Ltd (BioSyngas).

Funds received secured a forty (40) percent stake in BioSyngas under the terms and conditions set out in the BioSyngas Information Memorandum released on 1st June 2012, pursuant to Section 708 (8) (c) of the Corporations Act 2001

The funds will be used to progress the Bomen Project located in Wagga Wagga, New South Wales.

Phase 1 of the Bomen Project involves the development of a 3 MWe power plant fed by a combination of biogas and natural gas. The funds that have been raised will bring the project to ‘construction ready’ stage through a program of work which includes a detailed engineering study, development approval preparation and applications, further power offtake agreement negotiations and progression of a stakeholder engagement program.

This program of work, scheduled over the next six months, is expected to provide the basis for a prospectus to be developed for BioSyngas to be “spun out” of Syngas, to raise plant construction capital, through an Initial Public Offering (IPO). The timing and specifics of the IPO will be subject to a number of commercial considerations and economic factors.

For more details about the three Phases of development planned for the Bomen Project, to bring it to a total generation capacity of 6MWe utilising locally sourced biogas, natural gas and biomass, visit BioSyngas’ website: biosyngas.com.au.

BioSyngas has three other projects/proposals under review and development located in:

  1. The Northern Territory, using plantation trimmings;
  2. South Australia, potentially fed by excess residual straw produced through cereal cropping on the Yorke Peninsula. Refer to the related Logistics Management Field Trials completed in conjunction with farmers in 2010/2011, the outcomes of which are available on RenewablesSA’s website: renewablessa.sa.gov.au/investor-information/case-studies and on BioSyngas’ website; and
  3. Victoria, potentially based on forestry waste.

BioSyngas’ strategy focuses on developing multiple small scale (1.5 to 25 MW) power generation plants in Australia, leveraging off the engineering and design work completed for the Bomen Project, the Company’s first project, supplying and selling power to specific customers/offtakers under long term highly competitive agreements.

There is significant potential for BioSyngas to grow a successful business within the current highly favourable and expanding market, gaining from and strengthened by:

  • expectations that power prices around Australia will continue to increase,
  • the need for low carbon options to be implemented as part of the carbon tax implementation in Australia,
  • a renewed focus on biomass which is widely available as an energy source, and
  • both improvements in technologies and operational reliabilities being achieved in the conversion of biomass to energy.

This successful capital raising is expected to bring the Company closer to cashflow generation and result in investors gaining a clearer understanding of the value creation potential of the Bomen Project and other BioSyngas projects which are planned for development.

For further information contact:

Merrill Gray

Managing Director and CEO

Syngas Limited and BioSyngas Pty Ltd

Suite 9.09, Level 9,

365 Little Collins St,

Melbourne, VIC 3000

Phone: (03) 9602 3797

Fax: (03) 9602 3808

Syngas … Fuelling a cleaner, more secure energy future

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