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| 8-K - FORM 8-K - SYNTHESIS ENERGY SYSTEMS INC | c18353e8vk.htm |
Exhibit 99.1
| Synthesis Energy Systems www.synthesisenergy.com Brean Murray, Carret & Co. Global Resources & Infrastructure Conference London, UK, June 6, 2011 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, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. 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 early stage of development of SES, its estimate of the sufficiency of existing capital sources, its 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, its results of operations in foreign countries and its ability to diversify, its ability to maintain production from its first plant in the ZZ joint venture, its ability to complete the expansion of the ZZ project, its 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, its ability to negotiate the terms of the conversion of the Yima project from methanol to glycol, its ability to close the ZJX/China Energy transaction, its ability to grow its business as a result of the ZJX/China Energy transaction and the sufficiency of internal controls and procedures. Although SES 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. SES cannot assure you that the assumptions upon which these statements are based will prove to have been correct. |
| Headquarters - Houston, Texas Asia Business & Engineering Center - Shanghai, China NASDAQ: SYMX Shares Outstanding (March 31, 2011): 48.5 million Well positioned for long term sustainable growth About SES Creating value through safely applying our clean, efficient and low cost gasification technology in projects across the globe where low cost - low rank coals and biomass feed-stocks are readily available and where markets exist for the clean conversion of these feed-stocks into high value energy and chemical products. |
| Investment Highlights Pure play in unlocking value from low rank coal and biomass Coal is a major source of energy, particularly in emerging countries such as China and IndiaApproximately 50% of the world's known coal reserves represented by low rank coals1... abundant, low cost, and under-utilizedBiomass and biomass/coal blends for renewable and low carbon productsMultiple paths to value creationSynthetic Natural Gas, Transportation Fuels, Fertilizers, Chemicals, Power, more...SES advanced clean and efficient gasification technologyBased on U-GAS(r) , proven on a commercial scale2Commercial operations 3+ years in China; Second project under construction in ChinaNext generation of technology more efficient than older, commercially available technologies Three-pronged strategy for growth and value creationTechnology and equipment supply - steady fees stream Selective project investments - facilitate growth and increase margins Integrated coal resource plays - lock in high end upstream margins and equity returnsRegional Growth PlatformsChina and IndiaOther emerging markets with low cost low grade coal resources 2U-GAS(r) licensed from Gas Technology Institute (GTI) 1BP Statistical Review of World Energy 2010 |
| Senior Management Team...Decades of Energy Industry Experience Robert W. Rigdon - President & CEO30 years industry experience in manufacturing, engineering and technology with 15 years in gasification technology, project development and business development at ChevronTexaco and GE. Francis Lau - SVP, Chief Technology OfficerRenowned technology expert with +30 years R&D and industry experience. Previously Executive Director of Gasification and Gas Processing at GTI and primary developer of U- GAS(r) William E. Preston - SVP, Business Development & Global Licensing30 years of business development, project management, and operations including successful execution of the Cool Water Coal Gasification Program and Eastman Chemical's gasification plant Dr. John Winter - SVP, Engineering and Project Operations+30 years of petrochemicals experience including +15 years of gasification technology research, engineering design, technical services, and gasification plant operations Kevin Kelly - Chief Accounting OfficerControllership and treasury management positions with a variety of publicly traded companies |
| Creating Valuable Clean Energy Products from Low Cost, Low Quality Coals Coal...a critical natural resource to meet the world's energy needsFound in almost every country & typically lowest cost fossil fuelLow quality - sub-bituminous and lignite account for approximately 50% of total recoverable global reserves and SES target feedstockLow quality coals offer increased margins through significantly lower feedstock costs Sources: BP Statistical Review of World Energy 2010; Business Monitor International - China Oil & Gas Report Q4 2010; and, Jim Jordan & Associates - Global Methanol Report November 12, 2010 / Issue 390 Coal reserves (bn tonnes) |
| Attractive Economics with Low Quality Coal SNG Case Example 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 economicsEncouraged by Chinese governmentLarge scale "mega" projects planned (Typical 4B NCM built in 1B NCM Phases)Low cost - low quality coal is target fuel SES technology can unlock value in lignite coal vs. other gasification technologies which can be limited to higher grade coal. 1B NCM of SNG ~$150MM per annum in feedstock savings Shenyang Shenzhen SES provides a key clean, efficient & lower cost solution for SNG. |
| Paths To Value Creation 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 SES'U-GAS(r) System + |
| SES' technology is a Unique, Proven Solution that Addresses the Challenges of Low Cost, Low Quality Coals and Biomass to Help Meet The World's Growing Energy Needs SES' U-GAS(r) Gasification Technology Syngas Originated in the U.S. at the Gas Technology Institute over a 35-year periodFuel flexible - all ranks of coal & biomassSimple, low-cost designEfficient, low maintenance, & reliableLower water usage and improved environmental performance Well suited for small & large scale applications |
| Multiple Paths to Growth and Profitability SES Advanced Gasification Technology Three Pronged Growth StrategyTechnology, Equipment Supply & ServicesRapid U-GAS(r) CommercializationGrow installed baseNear term earningsProject InvestmentsEquity Carries & OptionsSelective InvestmentsEarnings from product salesIntegrating Coal ResourcesLinking under utilized low quality coal resources to SES projectsSecure low cost feedstock Technology & Equipment Supply Selective Project Investments Integrated Coal Resource Projects Implemented through regional business platforms and strategic partnerships |
| LicensingTechnology royalty is typically a one time fee collected across project design, construction & startupTypical project cycle...24 to 48 monthsTypical transaction range $3MM to $30MM+ (based on syngas capacity)1Specialized Equipment & Technical ServicesPre-Order Engineering Services...coal testing, feasibility studiesProcess Designs (PDP)...engineered by SES & delivered prior to detailed designEquipment...proprietary equipment orders placed during detailed designTechnical Services...training, commissioning, start-up, ongoing support Technical Services Specialized Equipment Gasification Technology SES Scope of Supply Technology, Equipment Supply & Services 1 Typically based on the project's daily capacity to produce CO,& Hydrogen (syngas) and methane as well as consideration for syngas energy content |
| Selective Project Investments Joint Venture partnerships with equity investments and carriesTypical Models...Build Own Operate (BOO)Syngas sales (CO + Hydrogen) End product sales - SNG, Fuels, Chemicals, etcBuild Own Transfer (BOT)Modular units; Engineering, equipment and construction partnershipsOperating and technical servicesTechnology licensing business provides broad set of opportunitiesAllows for larger scale value creation through equity participation |
| Zao Zhuang (ZZ) - Shandong Province(operating 3.5 years) JV with Shandong Hai Hua Coal & Chemical Co. Ltd (96% SES / 4% HH) Proven U-GAS(r) performance with successful commercial operationProven feedstock flexibility with wide range of coal and coal wastes processed High syngas availability...over 97% average Yima Plant - Henan Province(under construction) JV with Yima Coal Industry Group (75% Yima / 25% SES) Phase 1 of planned $4B Mazhuang Coal Chemical and Energy Industrial Park Converts 2,400 mtpd coal (up to 45% ash) to 300,000 mtpa methanol equivalent products Syngas generation planned for mid-2012 SES Existing Project Investments |
| Integrated Coal Resource Projects Linking under utilized low quality coal resources to SES projectsSES U-GAS(r) creates value in low quality - low value coal resourcesJoint Development Partnership with Midas Midas provides broad coal resource, mining and resource finance expertiseTarget regions include Eastern Europe, Eurasia, Australia, parts of Africa, Indonesia |
| Implementing the Strategy through Growth Platforms ZJX/China Energy collaboration brings extensive relationships throughout China to assist SES in development of new joint venture businessesChina...one of the world's fastest growing economiesCleaner and more affordable coal solutions are part of China's latest 5-year plan for energy security and reduced emissionsIndia growth driving need for clean coal based energy and chemicalsAdvancing multiple opportunities and potential strategic partnershipsIndian coal challenging for most gasification technologies but well suited for SES U-GAS(r)SES/Midas - Developing coal resource opportunitiesDeveloping coal resource/ gasification project partnershipsRegional business partnerships under review |
| SES - Unlocking Value in Coal and Biomass Summary Highlights Pure play in clean coal and biomass gasification technologyExperienced senior management teamCommercially proven project operations 3+ yearsClean, efficient, low cost next generation gasification technologyCreating value from low cost, low quality coals and biomassThree-pronged strategy for value creationImplementing strategy through regional business platforms ...clean, low cost energy drives global growth opportunities |