Origin Energy Limited · ASX:ORG
Origin Energy — Citigroup Alternative Energy Conference 2006
27 slides from Origin Energy's conference presentation, Oct 5, 2006
Slide 1: ASX announcement cover: presentation to Citigroup Alternative Energy Conference
Origin energy To Company Announcements Office Facsimite 1300 300 021 Company Australian Stock Exchange Limited Date 5 October 2006 From Bill Hundy Pages 27 Subject PRESENTATION Attached for your informatien is a presentation to be made by Mr Tony Wood, General Manager to the Citigroup Alternative En
Slide 2: Origin Energy
Slide 3: Disclaimer
Disclaimer Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy or sel
Slide 4: Since listing in 2000 Origin has grown into one of the leading energy companies in Australasia
Since listing in 2000 Origin has grown into one of the leading energy companies in Australasia... Exploration and Production One of the largest Over 2,436 PJe 2P reserves and annual production of 78 PJe suppliers of ge to +Diverse acreage position across Australia and New Zealand eastern Australian
Slide 5: Origin has positioned itself in the competitive segments of the Australian energy industry
Origin has positioned itself in the competitive (rather than regulated) segments of the Australian energy industry... .. and by implementing this strategy effectively can better manage risk and enhance the range of growth opportunities Page 4
Slide 6: The provision of energy will continue to evolve with alternative energy
COmpre go ‘Pressed v Vq@ Natura) gas ae traditione gh? nuclear Page 5 The provision of energy will continue to evolve with “alternative energy” driven by supply & demand pressures or social and economic imperatives Alternative Energy Energy sources or energy technologies which are not yet economic,
Slide 7: Origin and its predecessors have a history of investing in new or alternative energy
Origin and its predecessor companies have a history of investing in new or alternative energy applications... « Automotive LPG as an alternative fuel in the 60’s « Compressed natural gas vehicles « Geothermal “water furnace” technologies « LPG flame weeding technology (alternative to herbicides) « H
Slide 8: Our approach to alternative energy technologies has been consistent
Our approach to alternative energy technologies has been consistent across this time... « In the long term, is the new technology or source of energy capable of operating in a competitive market without subsidies? ¢ Can Origin bring a competitive advantage to the development of this technology? ¢ If
Slide 9: Origin's primary aim is to invest in technologies which will be economic in their own right
Origin’s primary aim therefore is to invest in technologies which we believe will be economic in their own right... « Subsidies may be appropriate in the short to medium term to help industries “get off the ground” but are unreliable as they can be removed as quickly as they are introduced « Such su
Slide 10: Internalising external costs is evident in the debate on valuing carbon emissions
This approach to internalising external costs is evident in the debate on a mechanism for valuing carbon emissions... Solar PV $250+ Cost v Emission Intensity of Emerging Generation Technologies $120 . $110 4 @ = CCGT w Capture m Geothermal (HDR) @ OIGCC w Capture (Biack Coal) % 'GCC (Black Coal} $1
Slide 11: Various attempts have been made to address this issue but lack a federal framework
Various attempts have been made to address this issue but lack an over-arching federal framework... Non-selective emission reduction schemes « NSW Greenhouse Gas Abatement Scheme (NGACs) « ACT Greenhouse Gas Abatement Scheme (NGACs) « National Green Power Accreditation Program « Greenhouse Friendly
Slide 12: With no consistent federal policy Origin has selected its investments carefully
With the lack of a consistent federal policy framework Origin has selected its investments carefully... r eo--------: | Option to buy output Options not exercised ... taking modest bets and securing options where ,Qutcomes are uncertain Origin |
Slide 13: An early area of Origin involvement was LPG
An early area of Origin involvement was LPG... LP.GAS AY FAMILLE ..and through subsequent developments natural gas vehicles Origin ; Page 12
Slide 14: Coal seam gas: Origin moved ahead of other major energy companies
Coal seam gas provides another example where Origin moved into an alternative energy source several years ahead of other major energy companies... “In addition to natural gas, there are prospects for the commercial utilisation of Australia’s deposits of coal seam methane ... However, there is signif
Slide 15: Coal seam gas initially required subsidies as the industry developed in the US
Coal seam gas initially required subsidies as the industry developed in the US... US Coal Seam Gas Production 1600 1600 1400 1200 1000 aor] Bet per year 600. 400. 200 aC fact 1084 198@ 1988 1961 Industry Statistics in Australia « Over 1000 PJ of contracts signed * Industry has spent $700m to date *
Slide 16: The proposed Spring Gully power station will use Origin CSG
The proposed Spring Gully power station in Queensland will use Origin CSG in a fully integrated development... « 1000 MW gas fired CCGT in 2 x 500MW stages - low emissions, proven technology station site « 18 month full EIS on power station complete « Power station adjacent to existing Origin CSG ga
Slide 17: Origin is investing in low carbon emission technologies - and solar is growing rapidly
Origin is investing in low carbon emission technologies to meet future energy needs - and solar is growing rapidly 1,206 ta Grid Stith OFF Grid [ $6.0 $7.0 4,006 IE Consumer — § Biltton “xy 806 $4.0 $3.0 $2.0 $4.0 G 7 T $0.0 & Europe @ North America Source: Strategies Uniimitad Page 16 $6.0 $6.0 « R
Slide 18: Origin has developed its unique solar photovoltaic SLIVER technology
Through initial research at the ANU Origin has developed its unique solar photovoltaic SLIVER technology... Innovative | Varied% || Coloured <ve™!bilig, packaging coverage _| background Concentrator | Windows Heritage Curved & Windows Portable Lightweight Mini Modules — Advertising Roofing BIPV ..cr
Slide 19: A plant for manufacturing SLIVER cells was built at Regency Park
During 2004 a high technology plant for manufacturing SLIVER cells was built at Regency Park in South Australia Page 18
Slide 20: SLIVER technology is being developed rapidly
SLIVER technology is being developed rapidly . ss 15W 40w 7OW 140W Dec 04 Mar 05 May 05 Jul 05 24 Generation 2" Generation Page 19 70-150W panels on sale Origin
Slide 21: Origin is seeking partnership to accelerate large-scale production of SLIVER
Origin is seeking partnership to accelerate the large-scale production of SLIVER technology A partner must be a great fit: « Culturally « Committed to SLIVER technology * Global growth aspirations « Can act quickly « Financial strength « Astrong brand Origin. Page 20
Slide 22: Origin has also chosen to invest in geothermal technology promoted by Geodynamics
Origin has also chosen to invest in geothermal technology promoted by Geodynamics due to its unique characteristics... % CO, emissions Zerob0. emissions: « Clean coal” not yet 8 = demonstrated; 7 ea eee a Ne ) @ HFR does not rely on 3 new technology; % Ag ae .. « Cooper Basin « known Ex» _ = — & } |
Slide 23: The GreenEarth range has cemented us as the leading green energy provider
in the Retail area our GreenEarth range of products has cemented us as the leading green energy provider... Ee Over 100,000 green energy customers on a range of products First greenhouse-gas neutral natural gas offering First solar-electricity retail product First to launch a light globe giveaway pr
Slide 24: Origin has taken an advocacy role in the debate on climate change and carbon
Origin Energy has also taken an advocacy role in the debate surrounding climate change and a carbon regime... 4y 5 SS" SolarCi AG, Se RAINY oye Adel % of The Business Case for Early Action gh 28% Austalian Susigeas Roundighis ox Climate Change .. as we believe that carbon is an inherent but unrecogn
Slide 25: Origin is a mainstream energy provider that plays a significant role in alternative energy
While Origin is a mainstream energy provider in Australia we play a significant role in alternative energy... ¢ Origin and its predecessor companies have a long history of involvement in alternative energy « We have clear criteria for investment in these areas « Some of those investments such as LPG
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Slide 27: For more information.
For more information. Page 26 For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www. originenergy.com.au and follow the prompts to th
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