SinoCoking Coal and Coke Chem Ind, Inc (NASDAQ:SCOK) witnessed a 200% increase in its share prices after it announced a clean energy deal with leading Chinese Research institutes. The company is ready to work with research institutes to work on a cleaner fuel called syngas.

SinoCoking Coal and Coke Chem Ind, Inc (NASDAQ:SCOK) came to an agreement with the Institute of Process Engineering of the Chinese Academy of Sciences and the North China Institute of Science and Technology. Under the agreement the mining company would start working on the alternative fuel, syngas, and refine it further from the next month.

SinoCoking Coal and Coke Chem Ind, Inc (NASDAQ:SCOK) is likely to convert as much as 21 million tons of coal into syngas by gasification, which involves use of intense heats to split fossil fuels into resulting elements and these elements are combined with either oxygen or steam to form the gas.

It is likely to cost around $18 million with expected syngas output of 60,000 cubic meters per hour. The company is likely to complete the project by February 2015 and this venture is likely to produce $30 million to $45 million in gross profits by the end of 2015.

It is one of the evolutionary steps of the Chinese government looking for cleaner fuel options and the company will start with its four coal mines in Henan. The government will reopen these mines next month, which were earlier shut under a mine consolidation program.

Shares of SinoCoking Coal and Coke Chem Ind, Inc (NASDAQ:SCOK) hit a 52-week high of $9.15 after the announcement and nearly 28.5 million shares of the company were traded on September 9.

This article has been written by Prakash Pandey.