Attached files
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| 8-K - FORM 8-K - SYNTHESIS ENERGY SYSTEMS INC | c09115e8vk.htm |
EXHIBIT 99.1
| Synthesis Energy Systems Robert W. Baird & Co.2010 Clean Tech ConferenceNovember 30, 2010 |
| Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Synthesis Energy Systems, Inc., a Delaware corporation (the "Company"), expects or anticipates will or may occur in the future, including such things as future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strength, goals, expansions and growth of the Company's business and operations, plans, references to future success, reference to intentions as to future matters and other such matters are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. Forward- looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the Company's early stage of development, its estimate of the sufficiency of existing capital sources, the Company's ability to successfully develop its licensing business, its ability to raise additional capital to fund cash requirements for future investments and operations, its ability to reduce operating costs, the limited history and viability of its technology, the effect of the current international financial crisis on its business, commodity prices and the availability and terms of financing opportunities, the Company's results of operations in foreign countries and its ability to diversify, its ability to maintain production from the Company's first plant in the ZZ joint venture project, our ability to complete the expansion of the Zao Zhuang project, our ability to obtain the necessary approvals and permits for its Yima project and other future projects, the estimated timetables for achieving mechanical completion and commencing commercial operations for the Yima project, our ability to negotiate the terms of the conversion of the Yima project from methanol to glycol, and the sufficiency of internal controls and procedures. Although the Company believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. The Company cannot assure you that the assumptions upon which these statements are based will prove to have been correct. The Company has no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise. |
| Synthesis Energy Systems - Unleashing the Power of Low Rank Coal and Biomass Commercially proven Advanced Gasification Technology Transforming ultra low quality coals into energy and chemicalsCreating value in otherwise low value coal resourcesEnabling renewable energy products - biomass gasificationOperating commercial project ~3 years - ChinaConstructing second commercial project - ChinaTarget regions - China, India, Australia and U.S.Company Headquarters - Houston, TXAsia Business & Engineering Center - Shanghai, China Providing the "key" to transform ultra low quality coal resources and biomass into high value energy and chemical products. Creating value by unlocking the potential of low rank coals and biomass through advanced technology. |
| Advanced Gasification Technology The Key to Unlocking Value Greenhouse Gas Capture Capable - CO2 Low ValueFeedstocks High Value End Products Gasoline blendingSyngas to gasolineDiesel - DME & FT liquids LPG - DME blending Synthetic natural gas (SNG) Fuel Gas IGCCFuel cells MethanolHydrogenOlefinsAcetic AcidGlycol Low quality coals Biomass Downstream Process Technologies By-Products Synthesis Gas (CO+ H2) Sulfur Ash Chemicals Fuels Fertilizers Power Gas Steel Making AmmoniaUrea DRI SESU-GAS(r) System U-GAS(r) Licensed from the Gas Technology Institute + |
| Technology Advantages Industry leading capability Proven TechnologyDeveloped by GTI(r) over the past 35 years11 pilot, demo and commercial units since 1975SES proprietary "Know-How" & technology capabilityGrowing IP with twelve new patents pendingIndustry leading fuel range for coals & biomassEconomically AdvantageousLow Operating CostsLowest cost coalsHigh operating reliability/availabilityLow water usageLow Capital Costs30 to 40 % lower More economical at smaller scaleSES China equipment sourcing capabilityEnvironmentally ResponsibleZero water discharge availableDoes not generate dirty tars & oilsGreenhouse Gas capture capable - CO2Renewable products from biomass fuels U-GAS(r) Advantages Syngas |
| Target Geographies Source: BP Statistical Review of World Energy 2009, U.S. Energy Information Administration1 Net petroleum imports includes both crude and refined petroleum products. Australian imports represent the broader Australasian region2 Includes both Australia and New Zealand Coal reserves (bn tonnes) Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 U.S. 238.3 China 114.5 Aus 76.2 India 58.6 2008 net petroleum imports (mmbpd)1 Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 U.S. 10.9 China 4.1 Aus 0.6 India 2.3 2010-2030 energy consumption growth Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 U.S. 1.14 China 1.72 Aus 1.25 India 1.69 2 Target Region AttributesFast growing emerging marketsHigh GDP growth driving energy demandEnergy security drivers - minimize importsShortage of domestic oil & gas resourcesAbundant low cost & low grade coalsCommitment to clean coal & renewable energy technologies 2 2 Emerging low quality coal opportunities |
| Creating Value from Low Cost - Low Quality Coals Total world coal reserves: 909 billion1~50% of global coal is lower quality1 Lower cost per unit energyLower mining costs are typicalDifficult for conventional coal technologiesU-Gas(r) cleanly & efficiently processes &...Creates value in otherwise low value coal Lignite25-35% carbon4,000 to 8,300 btu/lb Bituminous45-86% carbon10,500 to 15,500 btu/lb Anthracite86-98% carbon~15,00 btu/lb Sub- bituminous35-45% carbon8,300 to 13,00 btu/lb Source:Alan Sherwood and Jock Phillips. 'Coal and coal mining', Te Ara - the Encyclopedia of New Zealand, updated 23-Nov-09URL: http://www.TeAra.govt.nz/en/coal-and-coal-mining/1/1 SourcesLNG & Crude Oil: Business Monitor International - China Oil & Gas Report Q4 2010LPG & Methanol: Jim Jordan & Associates - Global Methanol Report November 12, 2010 / Issue 390 SES Lower Quality Coals Higher Quality Coals LowerCost Higher Cost Lower quality coals - Younger coals Sources: 1EIA International Energy Outlook 2010, |
| Natural gas-demand outpacing production (billion ncm) Business Launched in China GDP growth rate forecasted ~9%(a)Coal supplies ~70% of energy consumption(b)Cleaner coal solutions neededChina ~100BCM short on gas in 10 yearsLarge scale SNG projects in planningMotor fuel growth expected to increase ~5% /yr(c) Methanol to gasoline blending poised to growM100, M85 standards in place, M15 expectedCoal based chemicals, i.e. Olefins & Glycol, growingU-GAS(r) 30% + lower production cost with lignite coal Source: (a): CBI Research & Consulting, (b): BP, (c): Energy Information Administration China MeOH Producers Cost Profile (Rmb/tonne) Source: CBI Research & Consulting & Internal SES data Source: China Academy of Social Sciences: 2007 China Energy Development Report China is the ideal platform for U-GAS(r) |
| Illustrative China Coal to Gas (SNG) Economics Assumptions:4 billion ncm/yr SNG project in Inner Mongolia ChinaAll natural gas selling prices are retail price, including piping cost 60/40 D/ETIC $2.2bn; coal price inc. VAT at Rmb 135 per met ton ($20/ston) China Synthetic Natural Gas - SNGAdvantageous economics with U-Gas(r)Strong China government supportLarge scale "mega" projects planned (Typical 4B NCM built in 1B NCM Phases)Low cost - low quality coal is target fuel SES' U-GAS(r)Lower investmentHigher efficiencyLower Fuel Cost w/ low quality coals SNG Review:1 B NCM of SNGSwitching fuel from bituminous to lignite can translates to ~$150MM per annum in potential savings Shenyang Shenzhen U-Gas(r) is key to a clean, efficient & lower cost solution for SNG. |
| Multiple Paths to Value Creation SES Advanced Gasification Technology Three Tiered StrategyTechnology & Equipment SupplyRapid U-Gas(r) CommercializationNear term revenuesProject InvestmentsEquity Carries & OptionsSelective InvestmentsIntegrating Coal ResourceTransforming low quality coal value through technologyEquity Carries & Options |
| Technology and Equipment Supply Robust pipeline of opportunities workingGrowing regional footprint; China, India, Turkey, Vietnam, Australia, USMultiple Segments; SNG, Chemicals, Transportation fuels, Fuel gas, PowerEquity investment options Technical Services Specialized Equipment Gasification Technology SES Scope of Supply Technology Supply Value ComponentsPre-Order Engineering Services - Feasibility StudiesRoyalties (based on capacity) - Collected across design, construction & startupProcess Designs (PDP) - Engineered by SES & delivered prior to detailed designEquipment sales - Proprietary equipment orders placed during designTechnical Services - Training, commissioning, start-up, ongoing supportTypical transaction range $3MM to $30MM+ Global Licensing Business Launched Q4 2009Expected to drive near term revenue (based on syngas capacity) |
| Zao Zhuang Phase 1 - Operating ~3years Achieved COD within 1st year of operationHigh plant availability - 100% during 1Q'11Demonstrated U-GAS(r) fuel flexibility capabilityPhase 2 expansion in planning stage Location Zao Zhuang City, Shandong Province Partner Shandong Hai HuaCoal & Chemical Co. Ltd. Design Capacity 28,000 ncm/hour (~500 tonnes/day of coal) Product Syngas -sold over-the-fence to Hai Hua for methanol production Capital Cost Approx. $36 million Structure 95% SES / 5% Hai Hua COD December 2008 Successfully Demonstrating the Technology |
| Our Second Project Yima Phase 1 - Under Construction Yima Phase 1 - Under Construction Yima Phase 1 - Under Construction A Multi-Phased Project ApproachMazhuang Coal Chemical ParkPh 1 300k tpa MeOH (under construction)Ph 2 and Ph 3 ~900k tpa MeOH equivalentIntegrated local coal resourceMazhuang Park ~ $4.4B total investment |
| Summary Multiple paths to value creationTechnology and equipment supplyCoal & biomass project investmentsIntegrated coal resource playsA clean alternative to oil and natural gas productsProven technology with a low cost producer platformFirst project in operation and performing wellSecond project in construction and online in 2012Growing worldwide interest in low rank coals & biomass$37.7MM cash & cash equivalents as of Sept. 30, 2010Well positioned for long term sustainable growth |