Synthesis Energy Systems, Inc. (SES) announced that it has entered into a definitive Technology License Agreement with Australian Future Energy Pty Ltd. (AFE) for a large-scale project to be located in Australia. Based on the terms of the agreement, SES will receive fees based on the licensed capacity for the project, and for the Process Design Package (PDP), totaling $27 million. In addition to the Technology License and PDP, SES will immediately begin providing technical services to AFE related to the development of the project. It is expected that the project will purchase proprietary equipment from SES which, based on the license capacity of the project, could be valued at approximately $120 million and would be contracted soon after completion of the PDP. Fees are to be paid at agreed milestones across the development, design, construction, start-up and operations of the project. The entire package of technology, services and equipment is expected to provide SES with top line revenue of approximately $150 million, with attractive gross profit margins. This Technology License Agreement kicks off AFE’s first project. It is expected to be the first of several AFE projects developed for industrial-scale poly-generation facilities that produce low-cost syngas, ammonia for nitrogen fertilizer and ammonium nitrate products, as well as synthetic natural gas (SNG) and electric power. AFE has identified several project opportunities, and is expected to carry two of these projects forward into development, design and construction, subject to obtaining all necessary Government approvals and funding. A similar second Technology License and PDP order is also anticipated either later this year or next year related to AFE’s second project undertaking.