Clearsign Technologies Corporation · NASDAQ:CLIR
Clearsign Technologies — ClearSign Combustion — Investor Presentation (July 2019)
28 slides from Clearsign Technologies's investor presentation, Jul 10, 2019
Slide 1: ClearSign Combustion Corporation
ClearSign Combustion Corporation 1
Slide 2: Cautionary Note on Forward Looking Statements
Cautionary Note on Forward Looking Statements This presentation contains forward - looking statements. These statements include statements about our plans, strategies, financia l performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, t
Slide 3: Company Overview
Company Overview 3 ClearSign technology provides, we believe, a unique solution to some of the worlds most pressing productivity, energy efficiency and pollution problems effecting the energy, oil and gas production, boiler and processing industries • Based in Seattle, WA with offices in Tulsa, OK a
Slide 4: Addressing an Urgent, Global Problem
Addressing an Urgent, Global Problem 4 From Los Angeles… … to Beijing
Slide 5: Why Care about NOx?
5 Forms ground level ozone Serious respiratory problems Forms smog Reduces visibility Forms nitrate particles and acid vapors Causes respiratory problems Depletes ozone layer Contributes to greenhouse gas Forms acid rain Deteriorates water quality Reacts to form toxic chemicals NOx Source US EPA - 4
Slide 6: Addressing a Costly Operational Problem
Addressing a Costly Operational Problem 6 Modern low emission flames are large and often do not fit properly into existing heaters. Run time, operating efficiency and throughput are limited ClearSign technology avoids this limitation
Slide 7: Company Vision
Provide cost and energy efficient solutions that enable the world’s refining, petrochemical and boiler industries to meet the most stringent environmental toxic emissions regulations and increase efficiency We do this using a patented unique and revolutionary ceramic - based combustion technology Co
Slide 8: Company Strategy
To leverage our revolutionary technology by embedding ClearSign technology as the core of modern burners and other combustion equipment. We plan to accomplish this by forming mutually beneficial collaborative partnerships with or making strategic acquisitions of the world’s leading combustion equipm
Slide 9: Investment Highlights
Investment Highlights 9 * [Frost & Sullivan] • Patented and proven technology provides attractive ROI from improved operational performance while providing transformational improvement in emissions • Proven management team with deep industry experience • Rapid scale - up potential via “plug & play”
Slide 10: The ClearSign Core Technology
Refinery and Petrochemical Process Heater Technology • Our ClearSign Core™ is provided as the heart of an industrial burner. The key component is a ceramic element that controls the flame structure and radiates heat efficiently to the heater or boiler process tubes. • As of June 2019 we have 27 issu
Slide 11: ClearSign vs Competition: The Value ClearSign Core Provides
• Operating companies are forced to modify combustion equipment to meet environmental emissions mandates. The current technology required to meet the latest requirements is very expensive to install, has high operational costs and reduces process efficiency or throughput. • Even where less stringent
Slide 12: Cost Comparisons
Cost Comparisons 12 Case 1 100 MMBtu/ hr (no fuel supply automation) Case 2 40 MMBtu/ hr (no fuel supply automation) Case3 40 MMBtu/ hr (automation for fuel supply) 1,440 13,400 Capital cost $ thousands Operational cost $ thousands/year 0 211 960 11,200 Capital cost $ thousands Operational cost $ th
Slide 13: Competitive Position
Competitive Position - less expensive to install (vs SCR) - adds virtually no operating costs (vs SCR and LowNOx with FGR) - installs quickly 13 ClearSign Core Technology Low NOx Burner SCR Systems NOx Performance < 5 ppm < 15 ppm < 5 ppm CAPEX Low Low Very High OPEX Very Low Very Low Very High Inst
Slide 14: The Team
The Team 14 Colin “Jim” Deller, Ph.D., Chief Executive Officer • General Manager/Global Operations Director, Honeywell UOP Callidus Burner Business Steve Sock SVP Business Development • Business Development Manager, Burrow Global • VP Commercial, Amec Foster Wheeler Donald Kendrick, Ph.D. Chief Tech
Slide 15: Highly Leveraged Sales Model and Channel to Market
• Global Customers = Highly centralized expertise • Engineering companies and OEMs recommending ClearSign • Supply partners incentivized to find opportunities • ClearSign provides standard proprietary parts • Customer orders are engineered and manufactured by supply partners • ClearSign will retain
Slide 16: Premium Pricing Strategy
Premium Pricing Strategy price on value added – not on gross margin 16 • Current burner market has little product differentiation and commodity - based pricing • ClearSign’s revolutionary technology provides substantial value to customers through reduced capital expenditure, reduced operational cost
Slide 17: U.S. Targeted Markets
U.S. Targeted Markets 17 Refinery Segment • up to $826M ¹ Institutional Commercial and Industrial (ICI) Boiler Segment • up to $1,723M ¹ Large Industrial Segment • up to $802M ¹ Enhanced Oil Recovery (EOR) Segment • up to $100M ² Flare Segment • up to $201M ¹ Targeted 10 - Year Addressable U.S. Mark
Slide 18: USA Primary Target Markets
USA Primary Target markets 18 Texas 6,025,900 bpd refining capacity and estimated 21,000 burners installed Louisiana 3,530,355 bpd refining capacity and estimated 12,000 burners installed California 2,096,000 bpd refining capacity and estimated 7,000 burners installed Ethylene Adding an estimated 2,
Slide 19: China Targeted Markets
China’s $5.5 Trillion 10yr Environmental Commitment China Targeted Markets 19 • Chinese government approved $550B per year for next 10 years to invest in environmental equipment and technologies that reduce harmful emissions • 235,000 district heating gas fired boilers • 500,000 boilers i n other in
Slide 20: China Market Opportunity
• Govt. mandates drive investment and local participation • $300 billion spent to reduce air pollution (2013 - 2017) • Multi - billion dollar market with motivated local operating partners • District Heating • Refinery • Steel • Pulp & Paper • Cement • Marine • Aerospace • Improving air quality a to
Slide 21: China: Targeted Entry Strategy
District Heating Area in China District Heating Area Non - District Heating Area China: Targeted Entry Strategy 21
Slide 22: ClearSign Boiler Opportunity in China
235,000 District Heating Gas Fired Boilers 500,000 Boilers in other Industries Approximately 220,000 district heating boilers in critical emissions regions Approximately 130,000 other boilers in critical emissions regions 350,000 of these boilers are expected to be converted to low emissions technol
Slide 23: Market/Business Traction already Underway
• Partnerships – Under development for Process Heaters, Fire Tube Boilers, Water Tube Boilers, Flares and Vapor Combustors (Collaboration with ASHCOR announced) • Technology endorsed by Southern California South Coast Air Quality Management District • Fielded and commercially operating installations
Slide 24: Commercial Relationships
Commercial Relationships 24
Slide 25: Balance Sheet and Capitalization Table
Balance Sheet and Capitalization Table 25 Cash & Short - Term Investments (March 31, 2019) $13,837,000 Long - term debt $0 Total Fully Diluted Shares Outstanding 26,697,289 As of Q1 2019 SEC filing (March 31, 2019)
Slide 26: Structured to Capitalize on the Biggest Global Opportunities
Structured to Capitalize 26 Develop Western business and provide technology and support to global subsidiaries ClearSign Asia Investment and business development into all Asia ClearSign Combustion and Environmental Equipment Company, Ltd Investment and business development in domestic China …on the
Slide 27: Investment Highlights
Investment Highlights 27 * [Frost & Sullivan] • Patented and proven technology provides attractive ROI from improved operational performance while providing transformational improvement in emissions • Proven management team with deep industry experience • Rapid scale - up potential via “plug & play”
Slide 28: ClearSign Combustion: A Better Solution
ClearSign Combustion A Better Solution Boost Operational Efficiency Reduce Costs Decrease NOx Emissions 28
ClearSign Combustion — Investor Presentation (July 2019) on 6ix