The effort could lead to a joint venture business and is being touted as a first of its kind in the industry.

The agreement calls for SES to lead an engineering study that will first define the optimal integration of two advanced technologies, leading to improved efficiency, cost effectiveness, and an ability to use low quality coal as a feedstock.

This will be followed by the completion of a basic engineering package and budgetary cost estimate for the integrated plant. The cost and performance estimates for the integrated product design will be targeted at growing economies with indigenous low-quality coal and high natural gas prices.

SES will be assisted in this endeavor by global engineering company Fluor Enterprises.

“We will utilize our in-house gasification expertise, intellectual property, and our unique operations and maintenance experience to support the study, which we hope will form the basis of a joint venture business that will transform this growing industry,” SES president and chief executive Robert Rigdon said.

The study is expected to last eight months. Following successful completion, SES will advance the next steps with this important potential partner.