Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Pritchard Capital Partners Energize 2008 Conference
24 slides from Synthesis Energy Systems's conference presentation, Jan 8, 2008
Slide 1: A Global Industrial Gasification Company
A Global Industrial Gasification Company Timothy E. Vail President & CEO Pritchard Capital Partners Energize 2008 Conference San Francisco, CA January 8, 2008 S y n t h e s i s E n e r g y S y s t e m s C l e a n E n e r g y W o r k s
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 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than s
Slide 3: SES Highlights
SES Highlights Exclusive global license to proven U-GAS(r) coal gasification technology Headquartered in Houston; major operations in Shanghai and Beijing Trades on the NASDAQ Capital Markets under the ticker SYMX Construction complete on first project, Hai Hua; initial syngas production in January
Slide 4: Gasification
Gasification Gasification is a proven process which converts solid hydrocarbon fuels such as coal, biomass or petroleum coke into syngas Limits production of harmful emissions (CO2, SOx, NOx and particulates) Produces useful chemical byproducts (O2, N2 and steam) Syngas (CO, Hydrogen) Chemical Feeds
Slide 5: Feedstock Costs Drives Economics
Feedstock Costs Drives Economics Nat Gas Coal Methanol $0.0 $0.5 $1.0 $1.5 $0.1B $0.9B $1.3B $2.0 Inputs $6 - 9 / MMBtu Natural Gas $0.5 - 2 / MMBtu Coal (Waste Coal) Methanol 225k TPA Methanol Plant Note: Capital cost for methanol capacity between $100 - 500M depending upon feedstock and geography.
Slide 6: What is U-GAS Gasification Technology?
What is U-GAS(r) Gasification Technology? Exclusive global license to U-GAS(r) from the Gas Technology Institute Utilizes fluidized-bed gasification technology Efficiently converts carbon into high-value syngas Utilizes a wide-range of feedstocks SES engineers continue to improve U-GAS(r) Steam Gas
Slide 7: Significant Advantages Over Other Gasification Technologies
Operational Costs Lower temperature process reduces maintenance costs and downtime Scalability Lower capital cost for units of comparable size (100 - 400 MW) + O2 Gas Steam Slag Steam Gas Coal O2 Slag Gas Ash Coal Coal Steam + O2 Steam + O2 Significant Advantages Over Other Gasification Technologies
Slide 8: Feedstocks 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, Merlebach - ROM Utah , - ROM Columbian Chinese, Shen Fu Indi
Slide 9: Scale-up History of GTI Gasification Technology
Scale-up History of GTI Gasification Technology Capacity, Tons/day 1 10 100 1000 1970 1975 1980 1985 1990 1995 2000 2005 24 80 30 100 150 40 HP Biomass HP Coal LP Coal 10 8 40 20 Flex-Fuel Shanghai Maui Finland RENUGAS Chicago UGAS Pilot and PDU - Chicago 2010 165 Skive, Denmark Hai Hua, China 400 5
Slide 10: Business Strategy
Business Strategy Develop projects where U-GAS(r) technology has clear competitive advantages Target size range of 100 MW to 400 MW Close proximity to low rank and/or waste coal Target projects with attractive financial returns Projects with high pre-tax returns Technology access licensing and high-
Slide 11: China: Strategic Growth in Coal-to-Chemicals
World's second largest and fastest growing energy consumer (1) Rising dependence on foreign energy - 43% increase imports of oil (1) Planned investment of $127 billion in coal-to-chemicals industry by 2020 (1) China is the world's second largest consumer of methanol Rising use of methanol in gasolin
Slide 12: China: Tactical Considerations
China : Tactical Considerations Project development is faster, more efficient and less costly Strong governmental support lowers siting and permitting hurdles Strong local support eliminates "NIMBY" issues Availability of government bank financing of project costs Provinces expected to be included i
Slide 13: Hai Hua Joint Venture
Hai Hua Joint Venture Hai Hua is an independent producer of metallurgical coke, town gas and methanol Hai Hua problem - SES solution Short coke oven gas to fuel methanol plant U-GAS(r) plant to provide incremental syngas Hai Hua U-GAS(r) facility overview Construction complete; operational by Januar
Slide 14: February 2007 - Civil Engineering Complete
February 2007 - Civil Engineering Complete
Slide 15: May 2007 - Major Equipment Complete
May 2007 - Major Equipment Complete
Slide 16: September 2007 - Construction Substantially Complete
September 2007 - Construction Substantially Complete Sulfur Removal Gasifiers Acid Gas Removal Power Distribution Control Center Air Separation Unit
Slide 17: January 2008 - First Syngas Production
January 2008 - First Syngas Production
Slide 18: Golden Concord Joint Venture
Golden Concord Joint Venture Golden Concord is a subsidiary of one of China's largest private independent power producers Over 5 GW of installed electricity in China Owns coal mines in Shanxi, Henan and Inner Mongolia Over 1 billion tonne coal reserve in Inner Mongolia alone Abundant sources of low
Slide 19: Yima Joint Venture
Yima Joint Venture Yima is a large formally state-owned, integrated Chinese coal company One of 10 largest coal mining companies in China (1) Owns large lignite reserves in Henan Province (1) Currently runs Lurgi-gasifier system (1) Gasification expansion approved by provincial government Executed a
Slide 20: Strategic Relationship with AEI
Strategic Relationship with AEI AEI owns and operates essential energy infrastructure businesses serving more than 6.1 million customers with 11,800 employees in Latin America, Europe and Asia Over $2.7 billion in revenues (2006 pro forma) Gross installed capacity - 1,735 MW Power distribution lines
Slide 21: SES and CONSOL Energy Alliance
SES and CONSOL Energy Alliance About Consol Energy Largest coal reserve holder east of Mississippi River - 70% Owned in Fee 4.5 billion tons of coal reserves on 400,000 acres of land Coal waste stream of 20 million tons annually = 40-50 Bcf of gas Annual revenues of $3.7 B with a market cap of $10 B
Slide 22: Multi-National Industrial Corporations
Multi-National Industrial Corporations Large consumers of energy and/or chemicals seeking low-cost energy alternatives Opportunities to deploy U-GAS(r) at multiple sites around the world Target customers include: Chemical producers Integrated oil companies Aluminum companies Current opportunities Fe
Slide 23: Real Projects / Demonstrated Performance In Summary
Real Projects / Demonstrated Performance In Summary Proven U-GAS(r) technology offers many advantages Fuel flexibility Lower operational cost "Right sized" for today's industrial customers Leveraging global advantages Faster development and construction cycles Lower capital cost for equipment Advant
Slide 24: Hai Hua streaming video
For current streaming video of Hai Hua, visit: www.synthesisenergy.com/haihua S y n t h e s i s E n e r g y S y s t e m s C l e a n E n e r g y W o r k s
Synthesis Energy Systems — Pritchard Capital Partners Energize 2008 Conference on 6ix