Attached files
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| 8-K - FORM 8-K - SYNTHESIS ENERGY SYSTEMS INC | c13376e8vk.htm |
Exhibit 99.1
| Synthesis Energy Systems, Inc Commercial Demonstration Enabling New CTL Developments Mr. Robert W. Rigdon, President & CEO 2011 World CTL Conference Paris, France UNLOCKING VALUE THROUGH CLEAN ENERGY TECHNOLOGY |
| 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 Unlocking Value Through Clean Energy Technology Commercially proven advanced gasification technology Three pronged global strategyTechnology & EquipmentProject InvestmentsIntegrated Coal Resource ProjectsEnabling renewable energy products - biomass gasificationOperating commercial project ~3 years - ChinaConstructing second commercial project - ChinaCompany Headquarters in Houston, Texas, USAAsia Business & Engineering Center in Shanghai, China Creating value by unlocking the potential of low rank coals and biomass through advanced technology |
| U-GAS(r) AdvantagesFuel flexible - all ranks of coal, biomassSimple, low cost designModerate operating conditionsHigh carbon conversion >98%Capable of gasifying fine particles High availability Good turn down capability - down to 30% of syngas capacityAir-blown, enriched air or oxygen blownLower lifecycle costs SES U-GAS(r) Fluidized Bed A Unique Solution A Unique Solution A Unique Solution |
| Commercial Footprint Proving Fuel Flexibility Zao Zhuang Plant JV with Shandong Hai Hua Coal & Chemical Co. Ltd (95% SES/5% HH)Proven U-GAS(r) fuel flexibility, including successful commercial campaigns on:ROM bituminous coal Coal washing waste (middlings) - up to 55%wt ashHigh-ash sub-bituminous coalHigh moisture & high ash ligniteCarbon conversion >98%; CGE up to 82% Yima PlantJV with Yima Coal Industry Grp (75% Yima/25% SES)Integrated coal to chemicals in Henan ProvinceYima selected U-GAS(r) for its expansion projects following 2 wk test campaign on its high ash sub-bit coal at ZZ in Nov 2008Phase 1 of $4B coal to chemicals facility in Mazhuang Coal Chemical Industrial Park2+1 gasifiers designed for up to 45% ash coal, 2,400 mtpd coal throughput |
| The Low Cost Coal Guys Global Opportunities for CTL & Beyond Global OpportunitiesDriven by compelling economics of U-GAS(r)Focused upon creating value from the lowest cost coals around the worldMaking clean coal based projects an economic reality U-GAS(r) can significantly improve economics of CTL and other energy projects SES Facilities (Operating & Under Construction)CTL Project OpportunitiesOther Project Opportunities |
| Improving Project Economics with U-GAS(r) Opening the Fuel Envelope China MeOH Producers Cost Profile (Rmb/tonne) Source: (1,2): CBI Research & Consulting and SES Internal Data China coal mine-mouth price ($/mmBTU) U-GAS(r) Fuel savings advantage Proven technology - almost 40 years of historyCommercially operated on up to 55%wt ash coalLow capital cost due to simple design and moderate conditionsHigh syngas availability through stable fluidized bedWhy target lower rank coals?Low rank coal makes up 50% of global recoverable reserves (a)Lower mining costReserves often stranded without technologies like U- GAS(r)Difficult fuel space for other gasification technologies to penetrateU-GAS(r) low rank coal capability creates a low cost of production platform for multiple energy products including coal to liquids (a)Source: Energy Information Administration |
| SES' Global CTL Opportunities Growing Interest in coal to liquids Ambre Energy...Feasibility Study and commercial scale coal testingCoalworks...Feasibility Study and coal testing at GTI's facilitiesWestern Australian Project...Coal testing and evaluationConsol Energy...Feasibility Study |
| Ambre Energy - ambreCTLWorld Scale Coal to Fuels Project Low Value Feedstock High Value End Products 940 ML/yr unleaded petrol150 ML/yr LPG Local Queensland Coal MeOH Synthesis Syngas Ash Fuels SES' U-GAS(r) (1) (1) U-GAS(r) is exclusively licensed from the Gas Technology Institute with SES' patented design improvements Conversion Processes ExxonMobilMTG Process 4 MM mtpa open-cut mine Felton north coal deposit, Queensland, Australia$3.5B (AUS) estimated project costCOD 2014 Designed to meet 20% of Queenslands' demand for zero sulphur unleaded petrolUsing commercially demonstrated technologiesLow emissions profile and CO2 capture capable |
| Ambre Energy ZZ Test CampaignSuccessfully Demonstrating Low Rank Coal Gasification Campaign Details~2,800 tonnes of sub-bituminous Queensland coal shipped to ZZ and gasified in Dec 2010Ash content ~38%wtHeating value <7,000 Btu/lbAmbre Energy technical staff onsite for the campaignPositive ResultsCarbon conversion >98%Cold gas efficiency up to 83% "SES's U-GAS(r) technology demonstrated excellent performance in gasifying our high ash coal. As a result, we will move forward in our negotiations with - Mr. Edek Choros, CEO and Managing Director of Ambre Energy SES for a license agreement. Most importantly, we witnessed our coal being gasified at the Zao Zhuang plant in real time. This gave us and our investors in the project added confidence that we can create significant value from our coal reserves." |
| Example CTL Economics in Australia Based on SES' U-GAS(r) Gasification Project basisCapacityGasoline - 18,000 bpsdLPG - 254 tonne per day$3.5B capital investment Assumptions: 70/30 debt to equity, 30% tax rate, 90% mature plant availability SES' U-GAS(r) ADVANTAGE ROI (25%) ROI (20%) ROI (15%) |
| Pathway to Project Success Proven Performance at Commercial Scale Entrained flow cannot handle high ash or high moisture low quality coals without expensive beneficiation Entrained Flow Slurry Feed Entrained Flow Dry Feed SES U- GAS(r) Ash % 40+ ~10 -20 Moisture % ~ 20 - 25 50+ Entrained flow requires expensive drying techniques to feed lignite into gasifiers Modeling / Simulation Commercial Plant Test SES enables customers to achieve project financability through successful campaigns at its commercial plant, ZZ, on low rank, low cost coals |
| In Summary is focused on projects with low cost feedstocks that can have the most impact on viable project economicsis carrying its technology solution into projects like CTL in growth areas of the world that are demanding economic uses for their local energy sourceshas a three-tiered strategy for participation in projects Synthesis Energy Systems Licensing through technology transfer and equipment supplyEquity participation in strategic projectsPartnering globally in projects that integrate with under-utilized resources |