Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (July 2018)
37 slides from Synthesis Energy Systems's investor presentation, Jul 2, 2018
Slide 1: Corporate Presentation July 2018
Synthesis Energy Systems, Inc. Corporate Presentation July 2018 Clean | Economic | Sustainable Global Energy Growth With Blue Skies
Slide 2: Forward-Looking Statements and Disclaimers
Forward - Looking Statements and Disclaimers This presentation includes "forward - looking statements" within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . All statements other than statements of histori
Slide 3: Overview
Overview • SES is a clean energy company, founded in 2004 and publicly traded on NASDAQ since 2007 • We own proprietary technology for low cost, environmentally responsible generation of synthesis gas • Our synthesis gas is used for production of a wide variety of high - value clean energy and chemi
Slide 4: Business Model
Business Model Value growth through generation of earnings from SES technology licensing and proprietary equipment sales combined with income from equity ownership in clean energy and chemical production facilities. Our target markets are regions of the world, such as Australia and Poland, with high
Slide 5: Strategy
Strategy • Provide a financially attractive, lower - cost synthesis gas for the production of clean energy and chemicals • Leverage our technology to establish partnerships as business growth platforms in key global regions, where markets have limited access to affordable natural gas and abundant ac
Slide 6: Key Accomplishments
Key Accomplishments • Successfully commercialized technology from pilot - scale to current commercial scale • Completed 5 projects over 10 years utilizing 12 SES Gasification Technology (SGT) systems • Developed, owned and operated first commercial plant, proving robust commercial performance of SGT
Slide 7: Batchfire Resources, Australian Future Energy and SES EnCoal Energy Assets
Batchfire R es o u r ces A us t r alian Future Energy Assets • SES ~39% and Ambre Investments ~45%, a privately held company • Acquired 270 MM ton Pentland coal resource (1) • Industrial fuel gas, power and fertilizer projects under review • Signed first SGT License Agreement with SES, May 2017 Note
Slide 8: Yima Joint Venture and Tianwo-SES Clean Energy Technologies Assets
Yima Joint Venture Tianwo - SES Clean Energy Technologies Assets • SES 25%, Suzhou THVOW Technology Company 50%, and Innovative Coal Chemical Design Institute 25%. Shanghai, China • Granted regional sub - licensing rights to SES technology • Completed 3 projects for Aluminum Corporation of China (CH
Slide 9: Cost Advantage of SES Technology
0 2 4 6 8 10 12 14 16 18 SES Feedstock SES Low - Cost Syngas(3) NG from LNG(1) Crude Oil(2) Energy Cost ($/MMBTU) Energy Cost Comparison Value Proposition • Lowest cost syngas • Lowest cost feedstocks • Coal, coal wastes and solid renewable materials • Lower CO 2 footprint with renewable co - feedin
Slide 10: Proven Technology Used in Commercial Operating Plants
Proven Technology Used in Commercial Operating Plants • Outstanding performance • Proven track record • Strong base for growth • Industrial growth model SES project name Zao Zhuang Yima Chalco Shand o ng C halco Shanxi C halco Henan Year commissioned 2008 2012 2015 2016 2016 # of gasifiers 2 3 2 1 4
Slide 11: SGT: Greener Solution
SGT: Greener Solution A New Paradigm for Responsible Coal Minimal air pollutants (coal reaction vs burning) • SO x , No x and Particulate Matter near natural gas levels • Lower cost of electricity than natural gas in many parts of the world Reduced water consumption • 30% less water consumption than
Slide 12: Positioned for Growth
Positioned for Growth BATCHFIRE RESOURCES SES TECHNOLOGIES AUSTRALIAN FUTURE ENERGY CH I NA SES ENCOAL ENERGY - POLAND CURR E NT +2 YEARS OUT +5 YEARS OUT ~$320 Million ~$500 Million ~$70 Million (1) ( 1) ( 1) Notes: (1) Company asset valuation projections based on SES internal business modeling in
Slide 13: Our Australian Platform Company In More Detail
Our Australian Platform Company In More Detail 13
Slide 14: Focus: The Australian Opportunity for SES
Focus: The Australian Opportunity for SES Australia is at a tipping point with pressing domestic energy demand vs. export revenues • Increasing demand for reliable energy Australia wide and particularly on the east - coast grid • Increasing market prices for gas and base load power • Increased deman
Slide 15: AFE is a vertically integrated energy generation company
AFE is a vertically integrated energy generation company, using world - class gasification technology AFE’s core business model is based upon: • Providing baseload energy solutions to large industrial users and markets requiring a secure energy supply • Ownership or long - term commercial offtake co
Slide 16: AFE Focus and Accomplishments
AFE Focus and Accomplishments Large pipeline of projects under evaluation • Projects to be environmentally “class leading” with low carbon dioxide syngas production • Multiple locations, multiple energy and agrichemical end products • Low - cost production from low - cost coals from AFE resources an
Slide 17: Batchfire Resources: An AFE Success Story
Batchfire Resources: An AFE Success Story • Founded in 2016 as spinoff from AFE • AFE shareholders currently own approximately 52% of Batchfire • Acquired Callide Thermal Coal Mine, Central Queensland, operations October 2016 • ~230MM tons reserves; 1.7B metric ton estimated resource • Significant p
Slide 18: Our Poland Platform Company In More Detail
Our Poland Platform Company In More Detail 18
Slide 19: Poland Market
Poland Market • Poland currently relies on its abundant coal reserves for over 80% of its electricity generation • Local economies are heavily coal - based, with broad government support for the development of cleaner coal technologies • Natural gas prices from Russia are volatile, and Poland seeks
Slide 20: Business Model
Business Model • Advancing the low - carbon coal conversion capability of SES technology via blended coal/biomass resource utilization, and facilitate the licensing of this capability to other parties in Poland • Providing a compelling clean energy alternative to Poland’s power and industrial market
Slide 21: SES EnCoal Energy Focus
SES EnCoal Energy Focus Grow the pipeline of projects • Prior to JV formation, three years of market collaboration have resulted in a pipeline of potential projects • Major state industrial companies seeking alternative for lower fuel costs » State power generators seeking cleaner coal solutions and
Slide 22: Growth Catalysts
Growth Catalysts • Near - term • AFE funding completion • Permit filing for initial AFE project • Completion of SES Technology License for initial SEE project • Mid - term • Completion of SES Technology License for initial AFE project • Permit filing for second AFE project • Completion of SES Techno
Slide 23: Why SES Now
Why SES Now 23 Superior and proven clean energy technology » 5 projects built, with 12 SGT Systems; >$700MM total invested over 40 years (1) » Commercialized, economical & environmentally responsible clean energy solution Three - tier value growth business model » SGT licensing revenues » Proprietar
Slide 24: Our Leadership Team
Our Leadership Team 24
Slide 25: Leadership: Management
Leadership: Management DeLome Fair, President and Chief Executive Officer • Appointed SES’s chief executive in February 2016. Joined the SES executive team as SVP, Gasification Technology in December 2014. 25 years’ gasification and IGCC technology expertise in energy and petrochemical industries Fr
Slide 26: Leadership: Board of Directors
Leadership: Board of Directors Lorenzo Lamadrid, Chairman • Ten - year tenure as Chairman of SES. Since 2001, Managing Director of Globe Development Group Robert W. Rigdon, Vice Chairman • 35+ year career in chemicals manufacturing, project development and engineering management. Served as President
Slide 27: AFE Directors
AFE Directors Edek Choros, Executive Director • Geologist with over 25 years of professional experience in coal exploration, mine design, mine planning and management, with a focus on turnaround operations for numerous coal mines in Australia and the USA • Founder, CEO and MD of Millennium Coal Pty
Slide 28: AFE Directors
]S AFE Directors Australian FuiureEnergy Richard Barker, Independent Director general corporate guidance + Strong and broad contact network + Significant investment banking experience srt W. Rigdon, Di it + Former CEO of SES and current Vice Chairman of IGCC co (ChevronTe xxaco) in worldwide power &
Slide 29: Our Technology In More Detail
Our Technology In More Detail 29
Slide 30: SES Gasification Technology (SGT)
CO 2 Low Grade Coal Bio mas s Syngas Pro cess i n g Synthesis Gas (Syngas) (CO+ H 2 ) SU L FUR As h iGAS Power Low Value Fee d s to c k SES Gasification Processing $3 - 6 per MMBTU Cost of Syngas (1) High Value End Products M SW Industrial Fuels S N G Chemicals & Fertilizers Diesel & Naphtha DRI for
Slide 31: SGT: The Road to Commercialization
• Proven commercial technology » ~$200MM R&D: Gas Technology Institute (GTI) » ~$200MM Commercialization & Investment: SES » >$300MM Investment and Debt: Chinese Partners & Customers • Twelve commercial - scale gasification systems built over the past 10 years • Technology license for first AFE proj
Slide 32: SGT is the Superior Gasification Technology
Best Performance Moderate Performance SGT is the Superior Gasification Technology Commercialized Gasification Technology Comparison 1 Fluid Bed Moving & Fixed Bed Entrained Flow SES Gasification Technology (SGT) Slag Non - slag Dry Feed Slurry Feed Cost Factors Capital Cost Low Capital Cost Operatin
Slide 33: SES Project History
Project Year Gasifier Systems Product Syngas Capacity (n m 3 / hr) Syngas Energy per year Cost SES Role Zao Zhu a ng (ZZ) 2007 - 2014 2 Syngas 20,000 2.3 PJ $40MM (1) 100 % Equity, Technology & Equipment Yima 2012 - present 3 Methanol 90,000 10.6 PJ $250MM (1) 25% Equity, Technology & Equipment CHAL
Slide 34: Appendix
Append i x • Operating Structure • World Coal Reserves 34
Slide 35: Operating Structure
Operating Structure • SGT Licensing & Equipment Sales • SGT Process Design • SGT Equipment Design • Packaging Design & Manufacturing • Facilities Operations • Acquisition Due Diligence • Project Development • Project Management • Acquisition Funding • Project Development & Equity Funding • Equity Ma
Slide 36: World Coal Reserves
USA Total: 250.9 Bituminous & Anthracite: 220.8 Sub - bituminous & Lignite: 30.1 Africa Total: 13.2 Bit & Anthracite: 13.2 Sub - bituminous & Lignite: 0.07 India Total: 97.7 Bit & Anthracite (high ash): 92.8 Sub - bituminous & Lignite: 4.9 Australia Total: 144.8 Bit & Anthracite: 68.3 Sub - bitumino
Slide 37: Growth With Blue Skies
Growth With Blue Skies Nasdaq: SES synthesisenergy.com Investor Relations: MDC GROUP Contact: David Castaneda, (414) 351 - 9758 IR@synthesisenergy.com
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