Clearsign Technologies Corporation · NASDAQ:CLIR
Clearsign Technologies — Investor Presentation (November 2016)
19 slides from Clearsign Technologies's investor presentation, November 2016
Slide 1: ClearSign: The Future of Combustion
NASDAQ: CLIR ClearSign The Future of Combustion November, 2016
Slide 2: Important Cautions Regarding Forward-looking Statements
Important Cautions Regarding Forward-looking Statements All statements in this presentation that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, profit margin, cash or other financial items, any statements of the plans, strategies
Slide 3: What is ClearSign Combustion (CLIR)?
What is ClearSign Combustion (CLIR)? • ClearSign designs, develops and markets technologies that aim to improve the key performance characteristics of combustion systems, including emission, operational performance, energy efficiency and overall cost effectiveness. 3
Slide 4: Why are we invested?
Why are we invested? • Our technology is a disruptive, transformational, unique, patent- protected technology that will revolutionize a massive industry on a global basis. 4
Slide 5: Global Energy Market: Combustion Systems
Global Energy Market: Combustion Systems • Combustion is a fundamental energy conversion process. • 2/3 of energy used in U.S. manufacturing is converted via boilers, furnaces and process heaters¹: our core market focus. • ClearSign’s technology provides a transformational improvement in combustion
Slide 6: Market Drivers
Market Drivers • Environmental Compliance: increasing regulation of NOx and other pollutants across the U.S., Canada, Europe and China • Operational Efficiency: Energy/Cost savings Increased throughput Reduced maintenance and downtime 6
Slide 7: Technology Platforms
Technology Platforms Duplex™ Electrodynamic Combustion Control™ Duplex was discovered during R&D on ECC 7
Slide 8: Electrodynamic Combustion Control™
Electrodynamic Combustion Control™ A high-voltage pulsed electrical field is introduced directly into the combustion region: Improves efficiency Reduces or eliminates pollution at the source Suitable for a wide range of fuel types (solid, liquid, Gas) + 10v + 40,000v ELECTRODES Computer Contro
Slide 9: Duplex™: Transformational Technology
Duplex™: Transformational Technology Duplex is a unique technology that can reduce NOx to below 5 PPM while increasing operational efficiency. ✓ Reduced emissions: comply with the world’s toughest regulatory standards ✓ Increased operational efficiency: ✓ More efficient radiant heat transfer ✓ Elimi
Slide 10: Duplex™ Installation Varieties
Duplex™ Installation Varieties INTEGRATED UNITS FIRETUBE OTSG VC HEATERS ENCLOSED FLARES BOILERS 10
Slide 11: U.S. Target Market for Duplex™ $3.6 Billion
U.S. Target Market for Duplex™ Refinery Segment 10 Year Addressable • 10 yr Serviceable Available Market: • up to $826M¹ Market of up to Enhanced Oil Recovery (EOR) Segment $3.6 Billion • 10 yr Serviceable Available Market: • up to $124M² Large Industrial Segment • 10 yr Serviceable Available Market
Slide 12: Duplex™ Fuel Savings
Duplex™ fuel savings Duplex™ Fuel Saving Components OTSG 4% 3% Fuel Savings % FGR Elimination 2% Radiant Improvement 1% 0% 12
Slide 13: Duplex™ Value Pricing
Duplex™ Value Pricing Customer Receives 2-Year Payback Key attributes that may apply to customer’s application: • Reduced fines or increased emission credits • Elimination of flame impingement – increases throughput • Eliminate FGR • Reduced fuel usage/improved heat transfer • Reduced downtime for r
Slide 14: An “Asset-Lite” Business Model
An “Asset-Lite” Business Model • Unique value proposition provides strong potential margins (> 50%) • “Asset – lite” minimum working capital and CapEx requirements • Simple, cost-effective designs • Small Sales force and Regional Partners • Designs allow subcontracting through existing regional part
Slide 15: Commercialization Milestones
Commercialization Milestones Inception - 2014 2015 2016 2017 2018 Commercial pipeline -> ongoing deal flow Commercial acceptance as an industry game-changer Multiple installations build market Duplex™ -> confidence Field validation at commercial scale <- ECC™ Lab-scale testing and proof of concept R
Slide 16: Commercial Installations
Commercial Installations Eight customers in California, Texas and Alberta • Refinery: US Market: Up to $826M Q4 Sales to date: $260K at 2 refineries • Enhanced Oil Recovery: US/Canada Market: Up to $124M Q4 Sales to date: $101K • Enclosed Flares: US Market: Up to $201M Q3 Sales: $260K Q4 Backlog: $9
Slide 17: Strong Intellectual Property
Strong Intellectual Property • We believe our technologies represent a greenfield opportunity • We believe we have complete freedom to practice • Patent portfolio is expanding rapidly Duplex™ ECC™ Sept 2016 Sept 2016 3 Patent Granted 18 Patents Granted 48 Patents Pending 32 Patents Pending 17
Slide 18: Experienced Leadership Team
Experienced Leadership Team Steve Pirnat Jim Harmon Chief Executive Officer Chief Financial Officer • CEO, John Zink, div. Koch Ind. • CFO of Sabey Corporation • Managing Dir. EMEA, Quest Integrity Group • CPA at Price Waterhouse Roberto Ruiz, Ph.D. Joe Colannino Chief Operating Officer SVP Engineer
Slide 19: CLIR: Key Takeaways
CLIR: Key Takeaways • Large addressable market • Transformational technology • Strong intellectual property • Successful commercial-scale installations with customer-validated economics in 3 of 5 target market verticals • “Asset-lite” model – license or subcontract • Proven leadership team with deep
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