With the start-up of the our Yima Joint Venture gasification project in China, combined with several years of successful operating and technical experience gained from our first project in Shandong, China, we are now turning to accelerating the commercialization of our patented technology through industry partnerships and collaborations instead of direct SES investment into large scale gasification plants.
This 'capital-lite' approach is designed to take full advantage of the capabilities of our important gasification technology and build shareholder value through partnering with established and well-capitalized companies that have existing businesses in key market verticals and with the financial and personnel resources to deliver technology and equipment solutions into multiple projects on a global scale.
With our two commercial-scale plants in China, we have demonstrated the robustness, flexibility and scalability of our clean energy gasification technology on a wide variety of coals from all over the world. We see the value of our technology in key markets including power generation, steel, chemicals, transportation fuels, fertilizers, waste management and natural gas production, and believe we are now well positioned for meaningful deployment of our technology product into these market segments which will drive our future growth without large capital investment requirements by us.
Additionally, in 2011, SES Resource Solutions, Ltd. (SRS), a 50/50 joint venture between SES and Midas Resource Partners, AG, was created to provide additional avenues of commercialization for SES’ advanced gasification technology. Through this venture, the companies intend to take advantage of Midas’ depth of knowledge and broad base of relationships in the coal industry and join those resources with SES’ know-how and unique gasification technology to provide low cost, low grade coals globally for gasification projects that ultimately can lead to the production of high value end products including synthetic natural gas, fertilizers, metals, industrial and transportation fuels, chemicals, and power.Midas is an international resource investment and strategic advisory firm headquartered in Baar, Switzerland, that provides operating, corporate and business development solutions to international mining companies. Midas works with owners, boards of directors and executive management to transform nascent or underperforming coal and iron ore resource positions into commercial undertakings through leadership of planning, financing, resource development and operational establishment.
The SRS joint venture intends to identify and develop resource solutions as well as projects for conversion of low quality coals. It intends to establish separate entities for specific projects to attract external funding for these entities and to secure revenue from the entities via management and/or financing fees. The joint venture expects to derive revenue primarily from equity participation and royalties.