Clearsign Technologies Corporation · NASDAQ:CLIR
Clearsign Technologies — Investor Presentation (April 2020)
27 slides from Clearsign Technologies's investor presentation, Apr 21, 2020
Slide 1: ClearSign Technologies Corporation
ClearSign Technologies Corporation
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 affecting 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 safety and efficiency We do this using our patented unique and revolutionary ceramic - based combustion
Slide 8: Company Strategy
To leverage our revolutionary intellectual property 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 combus
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 Dec 2019 we have 29 issued
Slide 11: 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: ClearSign Eye: Pilot Sensing
ClearSign Eye ™: Pilot Sensing Flame sensors validate whether the flame of a burner pilot is on or off . The most common current technology available, flame rods, have a history of poor reliability, frequent need for replacement and thus create operational delay and resulting added expense to our cu
Slide 15: ClearSign Eye: Aerospace Development
ClearSign Eye ™: Aerospace Development • Announced contract with a major global aerospace company to validate the application of our sensor technology as a key component of a new system which focuses on increased efficiency and reduced maintenance on commercial and military aircraft. • Contract incl
Slide 16: 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 17: Premium Pricing Strategy
Premium Pricing Strategy 18 • Current combustion market has little product differentiation and commodity - based pricing • ClearSign’s revolutionary technologies provides substantial value to customers through reduced capital expenditure, reduced operational costs and anticipated increased productio
Slide 18: U.S. Targeted Markets
U.S. Targeted Markets 19 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 19: USA Primary Target Markets
USA Primary Target markets 20 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 20: China's $5.5 Trillion 10yr Environmental Commitment
China’s $5.5 Trillion 10yr Environmental Commitment China Market Opportunity 21 • Govt. mandates drive investment and local participation • Chinese government approved $550B per year for next 10 years to invest in environmental equipment and technologies that reduce harmful emissions • NOx boiler em
Slide 21: 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 22: 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 • Multiple Fielded and commercially operating inst
Slide 23: Commercial Relationships
Commercial Relationships 24
Slide 24: Balance Sheet and Capitalization Table
Balance Sheet and Capitalization Table 25 Cash & Short - Term Investments (Dec 31, 2019) $8,550,000 Long - term debt $0 Total Fully Diluted Shares Outstanding 26,707,261 As of Q4 2019 SEC filing (Dec 31, 2019)
Slide 25: 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 Ltd Investment and business development into all Asia ClearSign Combustion (Beijing) Environmental Technologies Co., Ltd Investment and business development in domestic China
Slide 26: Investment Recap
Investment Recap 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” prod
Slide 27: ClearSign Technologies
ClearSign Technologies Boost Operational Efficiency Reduce Costs Decrease NOx Emissions 28
ClearSign Technologies — Investor Presentation (April 2020) on 6ix