Environmental Clean Technologies Limited · ASX:ECT
Environmental Clean Technologies — Investor Presentation (November 2019)
57 slides from Environmental Clean Technologies's investor presentation, November 2019
Slide 1: Corporate Presentation
Corporate Presentation November 2019 “Bridging the gap between today’s use of resources and tomorrow’s zero-emissions future”
Slide 2: Disclaimer
Disclaimer Environmental Clean Technologies Limited (“ECT” or “the Company” ) has taken all reasonable care in compiling and producing the information contained in this presentation. The Company will not be responsible for any loss or damage arising from the use of the information contained in this
Slide 3: Investment Highlights
Investment Highlights Economic innovation - the ‘gateway’ solution Our technology will take low-value resources like brown coal at $10 pt and transforms it into chemically enhanced fuel pellets to create hydrogen, steel, fertiliser, metcoal and syngas. Increasing value of the product by up to 100x.
Slide 4: Revenue Model – Potential Sources of Revenue
Revenue Model – Potential Sources of Revenue Sale of Energy Products and Services The sale of energy products, including solid fuel, diesel, syngas and char. The provision of energy services, including boiler installations, financing, operations and maintenance. Technology IP Royalties: IP royalties
Slide 5: Corporate Overview
Corporate Overview Issued Capital (7 Nov 2019) Top Shareholders (7 Nov 2019) Holding % ASX Code ECT LJ & K THOMSON PTY LTD 1 255,000,000 5.31% <LJT & KT SUPER FUND A/C> Shares (pre-issue) 4,800 M 2 SUPERIOR COATINGS (AUST) PTY LTD 116,496,292 2.43% Market Capitalisation ~$4.8 M 3 MR GREGORY MILTS 10
Slide 6: Key People
Key People Glenn Fozard Executive Chairman Glenn has a strong commercial background and over 16 years experience in finance and capital markets at both board and executive level. With a deep understanding of tailored financial solutions for SMEs in the R&D, Cleantech and Agricultural sectors, he sup
Slide 7: ECT Limited - Organisational Structure
Organisation Structure ECT Limited - Organisational Structure Environmental Clean TechnologiesLimited Board of Directors • Glenn Fozard (Chair) • David Smith (NED) ECTFinance • Ashley Moore (ED) ECTIndia • Jim Blackburn (ED) • Martin Hill (Co Sec) Board of Directors ECT Executive Committee Board of
Slide 8: Solving Environmental Problems in the Resources Sector
Solving Environmental Problems in the Resources Sector The world is transitioning from a heavy industrialisation phase, where access to lower cost inputs was the priority, toward a technology driven paradigm that aims to reduce the impact of that industrialisation in the continued pursuit of economi
Slide 9: Core Technology Solution
Core Technology Solution Innovative resource Unique low rank coal drying technology - Coldry upgrading and conversion H2O ˃ IP owned 100% by ECT and key aspects of the IP are patent protected in technologies all major markets Minerals processing ˃ World’s most efficient pre-drying process for high m
Slide 10: Emerging Technology Solutions
Emerging Technology Solutions “Frugality drives Hydrogen – COHgen technology innovation, just like other H2 ˃ ECT is developing world leading know-how of hydrogen chemistry constraints do. One of in low grade coals the only ways to get out ˃ Targeting the lowest cost means of extracting hydrogen fro
Slide 11: Commercialisation Pathway
Commercialisation Pathway Technology Fundamental Scale Market Commercial Push R&D Applied R&D Demonstration Development Application Market Pull ECT’s commercialisation strategy is a core part of its business model. Revenue is the goal. ˃ Commercialisation is the process that converts ideas, Supply C
Slide 12: Moving up the value chain
Coldry Value Proposition ˃ Opens new markets HydroMOR Iron & Steel Market ˃ Establishes new revenue High value streams ˃ Diversifies energy and Conversion • Natural Gas Market • Liquid Fuels resource options Processes • Char ˃ Upward revaluation of stranded or low value low High Moving up the value
Slide 13: Coldry Value Proposition
Coldry Value Proposition: Spotlight on the thermal FOB Cash Costs* coal market Adjusted to 6300kCal/kg energy Content ˃ Incremental income from 120 sales of upgraded product This ‘gap’ between market price and cost enabled by low marginal 100 of production is the opportunity for low upgrade cost ran
Slide 14: Market Opportunity
Market Opportunity Coldry enables enhanced World Recoverable Coal Reserves & consumption utilisation of low-rank coal resources by allowing Content Carbon / Energy Content of Coal Moisture content them to service higher- 55% Low rank coal rank coal applications % of World Reserves 23% Lignite 32% Su
Slide 15: Market Opportunity - Global Application
Market Opportunity - Global Application Major low rank coal reserves Australia China Indonesia India & Pakistan Turkey Thailand Germany Czech / Serbia / Poland … North America Fast Fact – Capacity represents significantly ! more than 500 years of consumption at current rates, i.e. ample space for gr
Slide 16: Coldry Business Model
Coldry Business Model Value Customer Revenue Streams Propositions Segments ˃ Cost effective low rank coal drying ˃ Direct Product Sales from owned ˃ Direct Commercial users ˃ Open new markets and operated capacity – Coldry and ˃ Process integration ˃ Establish new revenue streams high Value products
Slide 17: Moving up the value chain
HydroMOR Value Proposition ˃ Lower cost raw materials Business-as-usual use of lignite is relatively low value. HydroMOR allows lignite to be used to produce high value metal ˃ Lower capital cost plant products. ˃ Lower emissions ˃ Higher value products value HydroMOR Iron & Steel High Coldry Steel
Slide 18: HydroMOR Business Model
HydroMOR Business Model Value Propositions Revenue Streams Customer Segments ˃ Lower Capital and Operating cost ˃ Direct Product Sales through Process integration primary iron production contracted off-take to 3rd party Projects ˃ Integrated steel plants ˃ Waste remediation solution ˃ Technology IP
Slide 19: Commercialisation Next Steps
Commercialisation Next Steps • To date, the Company has relied on equity and debt capital raisings, together with Government R&D rebate funding to advance development activities. • While ECT continues to pursue project opportunities in India with NLC India Limited (NLCIL) and other strategic partner
Slide 20: Commercialisation Next Steps
Commercialisation Next Steps • First tier of the strategy aims to leverage the Company’s existing Coldry High Volume Test Facility northwest of Melbourne to build upon the demand in the local market for solid fuel and char products • Following the successful signing last year (9 August 2018) of a 5-
Slide 21: High Volume Test Facility (HVTF) – Upgrade program
High Volume Test Facility (HVTF) – Upgrade program Fire event & insurance update • Initial insurance claim payment of $200,000 received • Site clean-up proceeding, estimated to take another 4 weeks • Proposed plant upgrade preparations & timeline (page 23) updated to include remediation works • Curr
Slide 22: High Volume Test Facility (HVTF) – Upgrade program
High Volume Test Facility (HVTF) – Upgrade program Char Project and Coldry Capacity Improvements Char Kiln • Earnings target: $2-3 million p.a. EBITDA • Cashflow target timeframe: 12 months • Consistent with tier-1 of the corporate strategy, the Company recently announced (9 October 2019) the propos
Slide 23: High Volume Test Facility (HVTF) – Upgrade Program
High Volume Test Facility (HVTF) – Upgrade Program ECT will initially focus off-take marketing efforts on the BBQ briquette market and is in active discussion with off-take parties. The upgrade works aim to deliver the following commercial capability: • Char and syngas production, utilising Coldry p
Slide 24: Plant Upgrade Outcomes
Plant Upgrade Outcomes Install new equipment and upgrade existing plant & equipment at HVTF site to: • Increase Coldry Production capacity to 25kmt/yr • 20kmt for Char, 5kmt for boiler fuel • 55kmt raw lignite required Coldry Revenue Target – Direct Sales • 5,000t delivering ~$1M rev pa & ~$250k EBI
Slide 25: Appendix
Appendix • Purpose Mission Vision • Corporate Values • Business Model • Our Partners • Coldry • Technology introduction • The low-rank coal challenge • The drying challenge • The Coldry process • Value Transformation • HydroMOR • Technology introduction • The ‘alternative raw material’ opportunity •
Slide 26: Purpose Mission Vision
Purpose Mission Vision We bridge the gap between today’s use of resources and tomorrow’s zero-emissions future Purpose The company commercialises innovative technologies to increase the economic and environmental benefits derived from low Mission grade, low rank and waste resources (Targeted Resourc
Slide 27: Corporate Values
Corporate Values ECT has developed a set of corporate values Bridging the Gap: which are as important We are focused on technology as an enabler to a zero-emissions future as the technologies to our company. These values are at the Frugal Innovation: heart of how we We strive to deliver innovative o
Slide 28: Business Model
Business Model ECT takes technologies, consistent with our Purpose, through the entire commercialisation process and into industrialisation. Technical Proof Monetisation Each stage is supported & IP Control & Bankability by our three departments which specialise across the commercialisation Technolo
Slide 29: Our Partners
Our Partners Projects & Engineering Corporate Business & Services Development Technology Corporate Presentation November 2019 | 30
Slide 30: Coldry technology introduction
Coldry technology introduction Low-rank coal drying ˃ Enhanced efficiency ˃ Greater energy security ˃ High value applications ˃ Low emissions Process Features Benefits Low temperature, low Lower opex cost per pressure tonne Simple, mechanical design Lower capital intensity, robust, reliable, lower o
Slide 31: Coldry technology introduction
Coldry technology introduction Product Features Benefits Low moisture, high energy Higher price, broader market applications value Stable Won’t permanently reabsorb moisture, low spontaneous combusting risk, storable, transportable Retained volatile matter Ideal for coal conversion technologies, yie
Slide 32: The low rank coal challenge
The low rank coal challenge To enable low rank coal use Moisture Content Range in higher value applications, 70 it needs to be dried. 60 Moisture content (%) 50 The challenge is ˃ High moisture content 40 to get the ˃ Low energy content 30 moisture down ˃ Not suitable for use in from here… 20 black
Slide 33: The Drying Challenge
The Drying Challenge Drying is easy. “It is difficult to dry low rank coal with high efficiency. For hard coals, the majority of the moisture is present on the surface of coal particles. Energy required to remove free moisture is simply the latent heat of evaporation (~2.27MJ/kg). In contrast a Dryi
Slide 34: Coldry Process
Coldry Process “One distinct advantage of Coldry is the relative low heat requirements in the drying process, allowing for the opportunity to make use of waste heat from an industrial facility or power plant.” Dr Victor Der Former Assistant Secretary for Fossil Energy, US Dept. of Energy General Man
Slide 35: Coldry Value Transformation
Coldry Value Transformation The marginal upgrading cost supports substantial value add through allowing low-rank “Given India’s large demand- coal to service higher value coal markets, with significant margin. supply mismatch of thermal coal, the Coldry technology of offers an efficient and cost- >8
Slide 36: Coldry Competitors
Coldry Competitors ˃ This graph is a proxy Coldry is the world’s first low temperature, low pressure drying method capable for process energy of producing a black coal equivalent product via a low cost, zero CO2 process. efficiency. ˃ High temperature and pressure requires Low-rank coal energy input
Slide 37: HydroMOR technology introduction
HydroMOR technology introduction Process Features Benefits Uses low-rank coal and ˃ Low rank coal replaces coking coal alternative iron ore ˃ Wide range of iron oxide sources materials ˃ Ability to use lower grades of iron ore ˃ Lower raw material cost ˃ Diversified supply chain ˃ Decoupling from co
Slide 38: HydroMOR technology introduction
HydroMOR technology introduction Product Features Benefits High Fe content ˃ Quality primary iron product suitable for existing steel making processes ˃ Low impurities resulting in high quality primary iron Flexible output: ˃ Flexible applications ˃ DRI pellet ˃ Integrate seamlessly with existing st
Slide 39: The 'alternative raw material' opportunity
The ‘alternative raw material’ opportunity There exists a vast, ‘above HydroMOR enables a lower cost primary iron production pathway by leveraging ground ore body’ in the two unique features: form of iron ore mine fines and slimes, and industrial 1 Decoupling iron making from coking coal wastes such
Slide 40: The 'steel intensity' challenge
The ‘steel intensity’ challenge India is positioned to The most powerful forces driving steel demand are aligned. As substantially increase economies develop and modernise, steel consumption per capita its steel demand, yet grows, reflecting a wide range of growing applications – basic is heavily re
Slide 41: HydroMOR Process
HydroMOR Process Inputs Iron ore Low-rank coal Waste Heat 1 2 3 4 5 6 7 8 9 Mix & Condition Dry Composite HydroMOR DRI Steel Casting Finished extrude Pellets Retort Pellet Refining Steel product (Electric Arc Furnace) HydroMOR employs a different ! chemical pathway, making it the world’s first and o
Slide 42: Inputs
Inputs Creating higher value ˃ The HydroMOR process combines metal oxide bearing media, low rank coal and a flux via product opportunities the Coldry process to produce a composite pellet ˃ Feedstock flexibility: HydroMOR can reduce the following metal oxides to metal: ˃ Iron Ore: ˃ Hematite: Fe2O3
Slide 43: HydroMOR Commercialisation Pathway
HydroMOR Commercialisation Pathway Current stage of development Commercial Bench Test Pilot Commercial Scale Scale Scale Scale Scale Demo Expansion ~125,000 ~500,000 ~1 to 2 tph tpa tpa capacity capacity capacity Bench Test Unit Test Plant ˃ 10kg output ˃ 1 tonne per day Pilot Plant Commercial Demo
Slide 44: HydroMOR Process vs. Blast Furnace
HydroMOR Process vs. Blast Furnace HydroMOR Process Low rank coal ˃ Lower Cost ˃ Simpler Steel Refining Iron HydroMOR Direct Reduced ˃ More flexible Coldry Process Electric Arc Oxide Process Iron Pellet Furnace ˃ Less CO2 Flux ˃ Lower cost inputs Environmental Improvement Efficient Product: ˃ Utilis
Slide 45: Benefits vs Blast Furnace
Benefits vs Blast Furnace Decoupling from traditional raw materials strengthens a business’ resistance to inherent price volatility ˃ Critical Raw material prices have moved between early and late 2016; mainly Coking coal ˃ Compared below is F2015/16 average (left) vs. mid October 2018 Spot (right)
Slide 46: Benefits vs other methods
Benefits vs other methods Iron Production Relative Raw Material Cost vs. Time & Temperature ˃ Lower Temperature 20 18 ˃ Lower residence time, Low temperature + low Residence Time (hours) 16 Direct Reduced Iron residence time = lower cost higher productivity 14 and higher productivity 12 ˃ Lower Cost
Slide 47: High Volume Test Facility Planned Upgrade to Plant & Equipment
High Volume test Facility Planned Upgrade to Plant & Equipment* 1) NEW lignite handling systems 2) NEW pug mill & extrusion system 3) NEW Conditioning systems 4) NEW Char kiln 5) NEW boiler system and co-generation 6) NEW lab, workshop, briquette press 7) Upgrade – Packed Bed Dryer 8) Upgrade – Conv
Slide 48: Lignite Handling systems
Lignite Handling systems • Cover raw lignite stockpile • Walking Floor conveyor for feed • Hammer mill size reduction for fibrous content • Retractable canopy roof • Feed to belt conveyor then into mill • Floor speed controlled by pit level sensor • High capacity hammer mill • Mill fibrous component
Slide 49: Extrusion Systems
Extrusion Systems • Install larger capacity extruder system • Retain existing extruder system New Mixer, Existing Mill, Mill & Extruder Extruder See Conditioning Belt section… *cost estimate includes installation
Slide 50: Conditioning Belt System
Conditioning Belt System • Multi-deck drying belt • Extended residence time for stronger pellets • ~2m wide, 13m long, 5 decks • Will achieve over 60min residence time at max rates • Bed turnover at each deck aids in even drying / curing • A range of vendors currently under review
Slide 51: Char System
Char System • New Char kiln & systems • Co-current kiln • Refractory lined • Intermittent burner operation (Lignite is the main energy source) • Energy value in the off gas is significant • Product rotary cooler • Refurbished tank for storage & packing
Slide 52: Boiler System with Co-gen
Boiler System with Co-gen • New Combustor for Kiln off-gas • 8-10MW JT gas boiler • Screw expander for electricity co-gen
Slide 53: Lab, Workshop, Briquette Press
Lab, Workshop, Briquette Press • Laboratory • Workshop • Briquette Press
Slide 54: Packed Bed Drying System
Packed Bed Drying System • New internal packed bed dryer (PBD) vessel design to improve air flow • Modified discharge mechanism to allow product evacuation flexibility: • Coldry to storage, or • Pellets to Char, or • Both
Slide 55: Proposed Site Layout
Proposed Site Layout ˃ Click New to edit Combustor for Kiln Offgas Master text New Boiler to consume energy / create steam (there will be styles excess energy) ˃ Second level Site electrical upgrades ˃ Third level Process control ˃ Fourth level SCADA system ˃ Fifth level Basic process laboratory
Slide 56: Operational Future of ECT at Bacchus Marsh
Operational Future of ECT at Bacchus Marsh • ECT aims to operate the Coldry and charring plant targeting $2m-$3m EBITDA pa selling to BBQ briquettes and carburiser markets • “Steam factory” used to attract other businesses seeking steam • Electricity cogeneration to off-set ECT production costs supp
Slide 57: Thank you.
Thank you. Glenn Fozard Chairman - ECT glenn.fozard@ectltd.com.au +61 450 886 756 Jim Blackburn COO Jim.blackburn@ectltd.com.au +61 407 881 075
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