Chesterfield Special Cylinders Holdings Plc · LSE:CSC
Chesterfield Special Cylinders — Pressure Technologies — Investor Day (January 2016)
54 slides from Chesterfield Special Cylinders's investor day presentation, Jan 26, 2016
Slide 1: Reinventing Earth's Energy – Investor Presentation
REINVENTING EARTH’S ENERGY World leader in biogas upgrading solutions Investor Presentation January 26, 2016 John Hayward, Group CEO Brent Jaklin, Managing Director, North America Stephen McCulloch, Managing Director, Europe
Slide 2: Renewable Natural Gas (RNG) / Biomethane
Renewable Natural Gas (RNG) / Biomethane Biogas is produced from the Remove impurities by Upgrading anaerobic digestion of to produce RNG for pipeline organic waste matter injection or use as vehicle fuel Slide 2
Slide 3: RNG/Biomethane sources
RNG/Biomethane sources Upgrade biogas from the following: Anaerobic Digesters WW Treatment Plants Landfills • Agricultural/crop waste • Municipal • Municipal solid waste • Livestock manure • Household waste • Organic diversion from municipal solid waste • Industrial food waste Slide 3
Slide 4: Timeline
Timeline • Greenlane originally founded in New Zealand in 1986 • Greenlane Biogas Europe opened in 1994 • Chesterfield Biogas was founded in 2009 and licensed the Greenlane technology • Greenlane Biogas North America opened in 2009 • Pressure Technologies plc acquired Greenlane Biogas in 2014, in or
Slide 5: What we do
What we do We provide: • Sales & Marketing, regional representation following consistent standards • Project Management, assigned PM is responsible for all phases • System Engineering, Standard products are integrated with peripheral process equipment selection by experienced Greenlane engineers • M
Slide 6: Global presence – 95 operational systems
Global presence – 95 operational systems Scandinavia 21 Iceland 2 Canada 10 UK 11 Sheffield, UK Germany 11 Netherlands 3 Vancouver, Japan 13 Canada France 6 USA 8 Spain 2 China 2 Pittsburgh, Korea 2 USA Beijing, China Brazil 3 São Paulo, Brazil New Zealand 1 Auckland, New Zealand Slide 6
Slide 7: Why has PT invested in Greenlane?
Why has PT invested in Greenlane? • Long established technology provider with a proven track record worldwide • Delivered the world’s largest projects and pioneered multiple markets • Unique and adaptable product portfolio • Flexible and scalable business model • Extensive knowledge of market opport
Slide 8: Example Projects
GREENLANE oy) | BIOGAS Slide 8 at Technalsgies
Slide 9: Widnes, UK
Widnes, UK System Totara Capacity 2000 Nm3/hr Application Anaerobic Digester CNG Use Pipeline injection Installed 2014 Overview Europe’s Largest Food Waste only upgrading facility. The AD plant takes food waste from a variety of sources, and produces Biogas. Our system includes a Totara upgrader and
Slide 10: Montreal, QC, Canada
Montreal, QC, Canada System 7x Totara+ Capacity 16,000 Nm3/hr Application Landfill RNG Use Trans Canada pipeline injection Installed 2014 Overview Largest RNG plant in the world Greenlane provided all process equipment and integration: - Blower - PSA - Regenerative thermal oxidizer - Compressor - Fl
Slide 11: Our approach
GREENLANE oy) | BIOGAS Slide 11 at Technalsgies
Slide 12: Our approach
Our approach Delivering the most effective solution for our client that is : • Technology independent • Modular and cost effective • Utilising outsourced manufacturing • Partnered with complementary technology providers • Maintained through an Aftercare service • Responsive to the market through pro
Slide 13: Technology independent
Technology independent Water Wash PSA Membrane Slide 13
Slide 14: Modular and cost effective
Modular and cost effective Slide 14
Slide 15: Utilising outsourced manufacturing
Utilising outsourced manufacturing • Taking advantage of relationships built with existing manufacturers with facilities in each of our markets • Utilising our established Global Supply Chain to give lowest cost manufacture appropriate to the market • Closely controlled by our engineers following ou
Slide 16: Partnered with complementary technology providers
Partnered with complementary technology providers • Solutions for Biogas • Landfill Gas VPSA • California’s “Rule 30” Pipeline Specification • PSA for Bio-CO2 Recovery • Growth Potential in other Markets… Slide 16
Slide 17: Maintained through an Aftercare Service
Maintained through an Aftercare Service Site Assistance Maintenance & Service • Installation • 24/7 technical support • Commissioning • Remote Monitoring • Performance Testing • Maintenance Services • Operator training • Spare Parts Slide 17
Slide 18: Responding to the market through product development
Responding to the market through product development Standard products to cover the full range of potential capacity requirements with all technologies Kanuka Rimu Matai Totara Kauri Slide 18
Slide 19: Target Markets
GREENLANE , oy) | BIOGAS Slide 19 at Technalsgies
Slide 20: Markets by region
Markets by region Canada UK Europe USA Asia Latin America Asia Pacific
Slide 21: Europe - market size and potential
Europe - market size and potential Europe is the largest AD market to date with only 367 biomethane upgrader plants +18.3% +23.1% Number of plants Number of plants +5.5% +17.7% +11.4% +18.8% +19.3% Major growth in energy from biomethane is forecast as a result of renewables targets Slide 21
Slide 22: European market drivers - policies
European market drivers - policies 2016 will be decisive for the future of biogas in Europe. Policies for the next decade, 2020-2030, will be proposed and negotiated at EU level. The European Commission will release its Renewable Energy package including a new Directive that revises or repeals the c
Slide 23: UK – market size and potential
UK – market size and potential • In the last five years the United Kingdom’s anaerobic digestion (AD) industry has seen 622% growth outside of the water sector • UK government is still supporting the rollout of AD to achieve EU targets 2020 “...NFU vision for AD…1,000 farm-based anaerobic digestion
Slide 24: UK – market drivers
UK – market drivers “Government policy is to deliver an increase in energy from waste through AD.” • In England Defra (2011) set a vision for 305 TWh of heat and electricity from waste by 2020 • The Wales Delivery Plan has created a capital and revenue financial support package for local authorities
Slide 25: UK – approach
UK – approach • EPC framework to deliver complete biogas plants • Forge further alliances with Technology partners ‒ AD ‒ Civils ‒ NEF (network entry facility) ‒ Gas compression for grid connections • Membrane and PSA as well as Water Wash technology offered to increase market accessibility • UK Man
Slide 26: France – market size and potential
France – market size and potential Biogas AD Plants (2014) Total 502 France still leads Europe in agriculture infrastructure, with approximately 730,000 farms Slide 26
Slide 27: France – market drivers
France – market drivers • The vision of the French Environment and Energy Management Agency is to produce 70 TWh biogas annually by 2030 • Planned that 50% of the biogas produced will be injected into the grid • Feed-in tariffs (on 15 years) • Biomethane tariff up to 12.5 c€/kWh • Huge agriculture p
Slide 28: France - approach
France - approach • Greenlane commissioned largest Biomethane plant 2015 ‒ Open day planned ‒ GDF SUEZ now ENGIE, Veolia & GrDF • Alliances with major project management companies • Launch of Membrane technology at January 2016 conference • Culture - French staff doing business in French Slide 28
Slide 29: Italy – market size and potential
Italy – market size and potential • 3rd biggest biogas sector after China & Germany • €4 Billion invested in the last 5 years • 1,300 biogas plants built (agriculture + sewage + waste + industrial) • Italian CNG car market is Europe's biggest (880,000 vehicles as of June 2014) Slide 29
Slide 30: Italy – market drivers
Italy – market drivers • New Biomethane tariff for grid injection and CNG stations to be introduced in 2016 • Duration of incentive 20 years • Government target of increasing biomethane consumption up to 30% of total consumption, about 500 million Nm3 per year • Target to double CNG service stations
Slide 31: Italy - approach
Italy - approach • Established partnership with BTS Italy’s largest AD provider • Members of the Italian Biogas Consortium (CIB) • Culture – doing business in Italian – staff or agents to be recruited as the market grows Slide 31
Slide 32: USA - market size and potential
USA - market size and potential Source: USDA Biogas Roadmap 2015 Slide 32
Slide 33: USA – market drivers
USA – market drivers • Organic material banned from landfills – 24 States/garden waste, 5 States/food waste – Los Angeles has mandated all Organics Facilities be built by 2020 • Renewable Fuel Standard (RIN) – Up to $10 MMBTU (4x price of Natural Gas) – Additionally, California add 2x price of Natur
Slide 34: USA - approach
USA - approach • Target projects for new organic waste facilities • Technology solution for meeting “Rule 30” in California • Continuing to build relationships with – Project Developers – Engineering Firms with Biogas Divisions – Anaerobic Digester Manufacturers – Financing Companies • Office establ
Slide 35: Canada - market size and potential
Canada - market size and potential 400 Agricultural 50 WWTP 41 Landfills Slide 35
Slide 36: Canada – market drivers
Canada – market drivers • British Columbia is strong with the Fortis BC voluntary RNG program, allowing them to buy RNG at $15/GJ (5x Natural Gas) • Alberta has changed governments (NDP), resulting in new funds made available for carbon mitigation projects • Ontario has the Climate Change Strategy ,
Slide 37: Canada - approach
Canada - approach • Dominate BC with strong Fortis BC relationship, currently sold 3 of 5 RNG plants • Increase presence in Quebec by leveraging the BFI success • Take advantage of new funding opportunities in Alberta • Promote the WWTP installation in Ontario, in support of the Canadian Biogas Asso
Slide 38: The Brazilian sugar mill market
The Brazilian sugar mill market • 412 Sugar Mills • potential for 80 Totara+ Brazilian pipelines Slide 38
Slide 39: Brazil – market drivers
Brazil – market drivers • Real (Brazilian currency) devaluation means that Exporters are making more money (sugar mills and agriculture producers) • Decreasing subsidies for fossil fuels is increasing their costs and making RNG more competitive • Increasing Diesel to Diesel/CNG conversions • The dec
Slide 40: Brazil – approach
Brazil – approach • Local business development manager recruited in 2015 • Target to win first Sugar Mill installation • Expand Customer Base • Demonstrate CO2 recovery technology • Local Outsourced Manufacturing • Base for expansion into other Latin American countries Slide 40
Slide 41: China potential
China potential • Dairy industry is our entry point • More than 50 dairy farms with 10,000+ cows • More than 600 dairy farms with 1000 to 5000 cows Slide 41
Slide 42: China – market drivers
China – market drivers • Government is focusing decreasing pollution • Ministry of Agricultural and NDRC(National Development Reform Committee) will support 10-15 biogas projects by funding Rmb 1B($ 200M) annually • +600 dairy farms forecast to install manure treatment facilities • End market CNG fo
Slide 43: China – approach
China – approach • Local business development manager recruited in 2015 • Partnership with Sifang Leo, manufacturer of dairy facilities • Expand customer base • Local outsourced manufacturing in progress • Protect intellectual property through patents and distributed manufacturing • Establish local
Slide 44: Summary
GREENLANE . @ ss side a ort.
Slide 45: Summary
Summary • Long established technology provider with a proven track record worldwide • Delivered the world’s largest projects and pioneered multiple markets • Unique and adaptable product portfolio • Flexible and scalable business model • Extensive knowledge of market opportunities and driving forces
Slide 46: Supplementary Information
Supplementary Information Slide 46
Slide 47: Regulations/directives of target markets
Regulations/directives of target markets Country Regulations/Directives USA Organic Bans in Landfills Renewable Fuel Standard Canada Local Climate Change Strategies Latin America - Brazil Rio de Janeiro/Sao Paulo requirement for RNG % Europe EU Renewable Energy Directive 2009/28/EC Member States mus
Slide 48: Current Brazilian regulations
Current Brazilian regulations ANP – Oil and gas Biomethane RNG specifications for injection to pipelines. agency specifications Excluded are landfill and wwtp. Siloxane metering is beign studied to allow LFG and WWTP. Regulation expected for 1st half of 2016. São Paulo (35% Programa Utilities have t
Slide 49: National Brazilian policies
National Brazilian policies • National Policy for Solid Waste (2018), it proposes Landfills solutions for waste management, such as biogas use. • Brazilian “Nationally Determined Contribution” under Paris Agreement (2015). Increasing the share of sustainable biofuels in the Brazilian energy mix by e
Slide 50: Organic waste bans in the USA
Organic waste bans in the USA • Organic waste bans: There has been an increase in the Organic Bans implemented in different states in the United States. The split is as follows: – Ban/mandate on garden waste: Arkansas*, Delaware, Florida*, Georgia*, Illinois, Indiana, Iowa, Maryland, Massachusetts,
Slide 51: Canadian regulations promoting RNG
Canadian regulations promoting RNG • Ontario Climate Change strategy. – LCFS Planned. – Reductions on FIT contracts. – The Biogas Association of Canada is pushing for municipalities to switch to RNG in the form of vehicle fuel for their fleets. • BC is strong with the Fortis voluntary RNG program. –
Slide 52: Canadian regulations promoting RNG
Canadian regulations promoting RNG • Quebec is pushing SSO since there is an organic ban. GazMetro purchases RNG. • Alberta has changed governments, a new NDP premier. – There are funds available for carbon mitigation projects. • New Liberal government. Has commited 300 million CAD per year at the C
Slide 53: Upgrading technology comparison
Upgrading technology comparison Technology Advantages Disadvantages Water wash Good performer across the full range of Requires water supply volumes especially at higher volumes 12-14m towers give problems with planning Robust and very forgiving of contamination More suited to AD as cannot remove O2
Slide 54: Disclaimer
Disclaimer This presentation has been prepared by Pressure Technologies plc (the “Company“ or “Pressure Technologies”) solely in connection with providing information on the Company and to certain institutional and professional investors in the United Kingdom. This presentation does not constitute o