Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (August 2017)
33 slides from Synthesis Energy Systems's investor presentation, Aug 21, 2017
Slide 1: Corporate Presentation August 2017
Synthesis Energy Systems, Inc. Corporate Presentation August 2017 Clean | Economic | Sustainable Global Energy Growth With Blue Skies
Slide 2: Disclaimers
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 historical fact are forward - looking st
Slide 3: Overview
Overview 3 • 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 che
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 Eastern Europe, w
Slide 5: Strategy
Strategy 5 • 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
Slide 6: Key Accomplishments
Key Accomplishments 6 • 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 & operated first commercial plant, proving robust commercial performance of SGT
Slide 7: Assets
Batchfire Resources Australian Future Energy Yima Joint Venture Tianwo - SES Clean Energy Technologies Assets 7 • Founded 2014 • Located in Shanghai, China • SES 35% and Suzhou THVOW Technology Company 65% • Granted regional sub - licensing rights to SES technology • Partner is major equipment manuf
Slide 8: Value Proposition: Energy Cost Comparison
0 2 4 6 8 10 12 14 16 18 SES Coal NewCastle Benchmark Coal SES Low-Cost Syngas(1)(5) Competitor Syngas(2)(5) NG from LNG(3) Crude Oil(4) Energy Cost ($/MMBTU) Energy Cost Comparison Value Proposition 8 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved • Synthesis gas generated with SES techn
Slide 9: Positioned for Growth
Positioned for Growth 9 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved Objective: Grow SES to a $500MM - $700MM business over next 3 to 5 years (1) Key Aspects of the Plan: Leverage our low - cost syngas capability in high - priced energy markets Secure long - term, low - price coal and b
Slide 10: Our AFE Platform Company In More Detail
Our AFE Platform Company In More Detail 10
Slide 11: 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 natural gas combined cycle (NGCC) power generation and liquefied natural gas (LNG) export commitments create gas shortages and increased prices on domestic
Slide 12: Success Story: Australian Future Energy
Success Story: Australian Future Energy Resource Ownership & Clean Energy Project Platform Company $10 billion (1) pipeline of projects under evaluation (2) • Projects to be environmentally “class leading” with low carbon dioxide syngas production • Multiple locations, multiple energy & agrichemical
Slide 13: Great Northern Energy Project Companies - Special Project Vehicles
13 Great Northern Energy Project Companies - Special Project Vehicles Project Level SPV AFE Operating Structure Key Facts • AFE has exclusive rights to, and will exclusively use, SGT in Australia • SES receives technology, licensing and equipment orders – SES • AFE receives 50% of licensed fee from
Slide 14: Batchfire Resources: An AFE Success Story
Batchfire Resources: An AFE Success Story Australian company created by AFE and spun - out in 2016 Acquired Callide Coal Mine, from Anglo American, October 2016 • Open cut thermal coal mine and associated infrastructure • Mature and significantly sized coal producer, in Central Queensland • Supplies
Slide 15: Why SES Now
Why SES Now 15 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 16: Our Leadership Team
Our Leadership Team 16
Slide 17: 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 18: 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 • Served as President and CEO from 2009 until February 2016, with an eight - year tenure with SES Harry Rubin,
Slide 19: 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 20: AFE Directors
AFE Directors 20 ©2017 Synthesis Energy Systems, Inc., All Rights Reserved
Slide 21: Our Technology In More Detail
Our Technology In More Detail 21
Slide 22: SES Gasification Technology (SGT)
CO 2 Low Grade Coal Biomass Syngas Processing Synthesis Gas (Syngas) (CO+ H 2 ) SULFUR Ash iGAS Power Low Value Feedstock SES Gasification Processing $3 - 6 per MMBTU Cost of Syngas (1) High Value End Products MSW Industrial Fuels Chemicals & Fertilizers SNG DRI for Steel Production Diesel & Naphtha
Slide 23: 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 24: SGT is the Superior Gasification Technology
Best Performance Moderate Performance Worst Performance SGT is the Superior Gasification Technology Slag Non-slag Dry Feed Slurry Feed Cost Factors Capital Cost Low Capital Cost Operating Cost Lowest Operating Cost Performance Factors Carbon Conversion Best in class Cold Gas Efficiency Best in class
Slide 25: 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 26: SES Project History
26 Project Year Gasifier Systems Product Syngas Capacity (nm3/hr) Pressure Cost SES Role Zao Zhuang (ZZ) 2007 - 2014 2 Methanol 20,000 3 Bar $40MM (1) 100% Equity, Technology & Equipment Yima 2012 - present 3 Methanol 90,000 10 Bar $250MM (1) 25% Equity, Technology & Equipment CHALCO Shandong 2015 -
Slide 27: Licensed SGT Projects
Licensed SGT Projects • Aluminum Corporation of China (CHALCO): • China’s largest alumina and primary aluminum producer and the world’s second largest alumina producer • SGT economically advantaged clean coal NG replacement projects • 3 industrial fuel supply plants • Secured by China JV Tianwo - SE
Slide 28: Appendix
Appendix • Operating Structure • Global Pipeline Projects • World Coal Reserves 28
Slide 29: Operating Structure
Operating Structure Licensing Proprietary Equipment Sales Technology Engineering & Services O&M for SES Projects SES Technologies SES Capital Development Packaged Products SES Asset Management Financing & Capital Management Project Investment Holdings Project Development & EPCM • SGT Licensing & Equ
Slide 30: Global Pipeline Projects
30 Global Pipeline Projects Notes: (1) List of active projects in current SES pipeline, it is not expected that all projects will follow through to compl eti on, but it is also anticipated that new projects will be identified that are not known at this time. Project names are not included to protect
Slide 31: AFE Project Pipeline
AFE Project Pipeline ~US$10B (1) Under Evaluation • P1 Agrichemicals Urea and By - Product SNG • P2 Agrichemicals Urea and By - Product SNG • P3 Agrichemicals Urea and By - Product SNG • P1 Synthesis Gas for Aluminum Manufacturing • P2 Synthesis Gas for Aluminum Manufacturing • Great Northern Energy
Slide 32: World Coal Reserves
USA Total: 251.6 Bituminous & Anthracite: 221.4 Sub - bituminous & Lignite: 30.2 Africa Total: 13.2 Bit & Anthracite: 13.2 Sub - bituminous & Lignite: 0.07 India Total: 94.8 Bit & Anthracite (high ash): 89.8 Sub - bituminous & Lignite: 5.0 Australia Total: 144.8 Bit & Anthracite: 68.3 Sub - bitumino
Slide 33: Growth With Blue Skies
Nasdaq: SYMX synthesisenergy.com Growth With Blue Skies Investor Relations: MDC GROUP Contact: David Castaneda, (414) 351 - 9758 IR@synthesisenergy.com
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