Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (May 2008)
21 slides from Synthesis Energy Systems's investor presentation, May 2, 2008
Slide 1: Synthesis Energy Systems: Cleanly Unlocking the Value of Coal
N= — | SYNTHESIS ENERGY SYSTEMS Timothy E. Vail President & CEO May 2008 Cleanly Unlocking the Value of Coal
Slide 2: Forward Looking Statements
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 218 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), All statements, other than
Slide 3: SES - A Global Industrial Gasification Company
SES - A Global Industrial Gasification Company Our business is to build, own and operate gasification plants in China, the U.S. and ultimately worldwide: > Exclusive global rights to proven and advantageous U-GAS® technology > Demonstrated ability to implement unique technology with first project co
Slide 4: Overview of the Gasification Process
Overview of the Gasification Process Gasification is a proven process that converts solid hydrocarbon fuels into synthesis gas (“syngas”), which can be used to produce valuable chemical and motor fuel products. Produces useful chemical byproducts (O,, N, and steam) Syngas (CO, Hydrogen) Gasifier . L
Slide 5: Coal vs. Natural Gas: A Margin Opportunity
Coal vs. Natural Gas: A Margin Opportunity The increased spread between natural gas and coal prices provides a significant global opportunity for gasification. 12 Price History 1998 - 2007 Zc % Zz Zz z % % 2, Gy ty “YO “D G %Y % % DG % Go & & &® & &@ — Natural Gas — Appalachian Coal Source: U.S. Dep
Slide 6: Why Coal: Feedstock Costs Drive Economics
Why Coal: Feedstock Costs Drive Economics Feedstock Costs Product Revenue Natural Gas \ $6-$9/MMBtu Methanol $300-$800/ton ag bb A key component in ~ ($0.50-$2/MMBtu : me plastics, silicon, paint, etc.
Slide 7: Cost Differential: Coal vs. Natural Gas Feedstock
Cost Differential = $0.8 Bn Substituting low cost coal for natural gas would save $0.8 billion in feedstock costs over the 20-year plant life Feedstock Costs Product Revenue : i bi Methanol OR eee: “itty $1.3 Billion A key component in : plastics, silicon, paint, etc. Methanol Plant Assumptions: 20-
Slide 8: SES Has a 30-Year Exclusive Global License to U-GAS
SES Has a 30-Year Exclusive Global License to U-GAS® S€ ® was developed by the Gas Technology Institute (“ GE, Shell, Siemens, 7 ConocoPhillips U-GAS® Fluidized Bed Lurgi Gas t Entrained Flow Moving or Fixed Bed. Gas Coal} | Slag Slag Steam | Ash +O, Unique ability to efficiently gasify a wide Fuel
Slide 9: Variety of Feedstocks Successfully Gasified in U-GAS
Variety of Feedstocks Successfully Gasified in U-GAS Bituminous Coals ‘Western Kentucky No. 9, washed & ROM ‘Western Kentucky No. 9 and 11, Camp Illinois No. 6, Peabody No. 10 and Crown III Pittsburgh No. 8, Champion and Ireland Australian, Bayswater No. 2, Sydney Basin Polish, Silesia French, Merle
Slide 10: More Than $200 million Invested in U-GAS
More Than $200 million Invested in U-GAS® + 200 GTI Test and T 150 Development Units 10 |----4---L..- 4... --------------- ge ee === -- pg nnn nnn Cumulative Investment ($ Millions) Feedstock Capacity (tons/day) 50 1970 1975 1980, 1985 1990, 1995, 2000 2005 2010
Slide 11: Our Strategy: Build, Own and Operate U-GAS Facilities
Slide 12: China: A Tremendous Growth Opportunity
China: A Tremendous Growth Opportunity > Rapidly growing demand for domestically produced energy and chemical feedstocks > Increasing use of methanol blending in high-demand transportation fuels > Political and regulatory commitment to clean coal technologies > “China” Advantage — faster and less co
Slide 13: Hai Hua Joint Venture
Hai Hua Joint Venture HAI HUA PROJECT Location Zaozhuang City, China Capacity 300 tons/day of coal [25 MW (equivalent)] Product Syngas Design Output 28,000 scm/hr Build Cost $29 million Financing Source Industrial and Commercial Bank of China (ICBC) Term Loan $12 million Groundbreaking December 2006
Slide 14: Hai Hua Project Timeline
Mar ‘06 Dec ‘06 Feb ‘07 May ‘07 Sept ‘07 Jan ‘o8 JV Agreement Signed Engineering Complete ‘ Equipment Installed Constructio n Complete First Syngas Produced
Slide 15: Golden Concord Joint Venture
Golden Concord Joint Venture GOLDEN CONCORD PROJECT Location Inner Mongolia, China Capacity 1,200 tons/day of coal [100 MW (equivalent)] Product Methanol/DME Design Output 225,000 tons/year of methanol or 150,000 tons/year of DME Expected Cost $100 million Financing Under Negotiation Groundbreaking
Slide 16: Yima Joint Venture
Yima Joint Venture YIMA PROJECT Location Henan Province, China Capacity 4,000 tons/day of coal [400 MW (equivalent)] Product Methanol/DME Design Output 1,000,000 tons/year of methanol or 660,000 tons/year of DME Expected Cost $300 million Financing Under Negotiation Expected Groundbreaking aie Eis E
Slide 17: SES and AEI Will Jointly Develop U-GAS Plants Worldwide
SES and AEI Will Jointly Develop U-GAS® Plants Worldwide S€5_ VAN = Develops, owns and operates essential energy iN infrastructure for the world’s emerging markets a, Natural Gas Ty Power Retail Distribution E“I Generation Fuel Natural Gas ra Power Trans, & Srvs. Distribution >» Augments our develop
Slide 18: SES and CONSOL Energy Are Developing U-GAS in N. Appalachia
SES and CONSOL Energy Are Developing U-GAS® in N. Appalachia _s == CONSOL ENERGY (NYSE: CNX) = 3] SYNTHESIS ENERGY SYSTEMS Production of 70 million tons of coal per year Can be converted to 1.6 million tons of methanol ($800 million revenue per year)
Slide 19: The SES and CONSOL Energy U-GAS Project is Advancing
The SES and CONSOL Energy U-GAS® Project is Advancing > Selected West Virginia mine site < Pennsylvania Ohio ) 2 i > Completed preliminary ad xin feasibility & engineering studies ; Wirginia >» Concluded feedstock coal testing foes Virginia a Fa {Ej == CONSOL ENERGY (NYSE: CNX) SYNTHESIS ENERGY SYST
Slide 20: Financial Summary
Financial Summary NASDAQ: SYMX Date of Listing Shares Outstanding (Fully Diluted) 52-Week Range Average Daily Volume (3-month) Equity Offerings November 2007 July 2006 May 2005 November 1, 2007 41 million shares $5.00 - $15.92 35,000 shares $54 million at $9.00 per share $16 million at $5.25 per sha
Slide 21: Real Projects / Demonstrated Execution
REAL PROJECTS / DEMONSTRATED EXECUTION N= SYNTHESIS ENERGY SYSTEMS For time-lapsed video of Hai Hua, visit: www.synthesisenergy.com/haihua Cleanly Unlocking the Value of Coal
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