Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Investor Presentation (November 2016)
34 slides from Synthesis Energy Systems's investor presentation, Nov 14, 2016
Slide 1: Growth with Blue Skies: Corporate Overview November 2016
Synthesis Energy Systems, Inc. GROWTH WITH BLUE SKIES GLOBAL PROVIDER OF LOW - COST CLEAN ENERGY Corporate Overview November 2016
Slide 2: Forward-looking Statements
SES Forward - looking Statements 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
Slide 3: SES Snapshot
SES Snapshot • Global large - scale clean energy opportunity • Industrial growth model • Syngas enables developing world to tap low - cost domestic resources, replaces expensive NG • Multiple channels, multiple products, multiple billion - dollar growth markets • Leadership: Fortune 100 engineering
Slide 4: Meets Global Needs & Resources
Meets Global Needs & Resources Confluence of Factors Propels Large - scale Demand • Global need for cleaner energy that is economical • New population growth, creation of new middle - class • Driven by world’s emerging economies, building GDP • Economic and geographic realities: • Abundant domestic,
Slide 5: A New China Paradigm
A New China Paradigm SES: Expanding in China and Globally via China’s One Belt, One Road Initiative x $40 billion New Silk Road Fund x $50 billion Asian Infrastructure Investment Bank x Financing, technology & manufacturing for large - scale international infrastructure projects x Impact: 4.4 billio
Slide 6: SES Gasification Technology (SGT)
CO 2 CAPTURE CAPABLE LOW GRADE COAL BIOMASS SYNGAS PROCESSING SYNGAS (CO+ H 2 ) SULFUR ASH iGAS Power $1.50/MMBTU Typical Feedstock Input Cost (1) SES VALUE ADDITION $4 - 8 MMBTU All - In Cost vs. Long - term $12 - 17 MMBTU NG/Oil (2) (3) HIGH - VALUE END PRODUCTS MSW Notes: (1) SES Economics based
Slide 7: Cleanly Creates Energy Products In Need
Cleanly Creates Energy Products In Need SGT: Superior Gasification Technology x Higher efficiency x Lower operating costs x Lower capital investment x Low rank coal capability Eco - friendly as well as Economical x Eliminates air pollutants x Lower water usage x CO2 stream capture for sequestering,
Slide 8: Building On Achievements, Positioned for Growth
30 Years R&D (GTI) ZZ Syngas Project 2 SGT Systems Yima Large Scale Chemical Project 3 SGT Systems (2+1) Tianwo - SES Equipment Design and Manufacturing Aluminum Corporation of China 7 SGT Gasification Systems – Industrial Fuel Gas Building On Achievements, Positioned for Growth • Outstanding SGT Pe
Slide 9: Value Creation - Project Example
Value Creation - Project 9 Example Project - $100 MM Total Cost SES Technology & Equipment Supply: • ~$10 - 15 MM order value (2) • Attractive margins • Revenue stream to SES during 24 + month development, construction, and startup cycle (3) 25% SES Equity Investment: • ~$7.5MM/Year EBITDA • Ongoing
Slide 10: Value Creation - Platform
Initial Project(s) Value Creation - Platform 10 SES SPV 50% China Partner 50% Sino - Foreign China Clean Energy JV (CCEC) IPO Potential Projects Sell on a Multiple of 6.25 x EBITDA SES LP INVESTORS SES Special Clean Energy Fund GP EQUITY FUNDING Stage 1 Stage 2 Proceeds Return to CCEC for Reinvestme
Slide 11: Maximizing the Opportunity
Maximizing the Opportunity ©2016 Synthesis Energy Systems, Inc., All Rights Reserved Multiple Products • Industrial Syngas: Hydrogen – cleaner transportation fuels • Industrial Syngas: Fuels • iGAS Power • Substitute Natural Gas (SNG) Multiple Energy Growth Markets • Clean syngas for conversion into
Slide 12: Well Positioned for Large & Growing Energy Markets
Well Positioned for Large & Growing Energy Markets Total available market for all verticals is estimated by SES at over 10,000 Yima - sized gasification systems worldwide Gas Fuel Markets of Industrial Fuels, H2 & SNG iGAS Power ©2016 Synthesis Energy Systems, Inc., All Rights Reserved 12 • INDUSTRI
Slide 13: Tianwo-SES Clean Energy Asian JV Partnership
Tianwo - SES Clean Energy Asian JV Partnership Global Business Partners Regional Partners Strategic Joint Venture Establishing SGT as the market leader in China & 5 Asian regions for clean coal gasification, include proprietary equipment and gasification island turnkey projects GE Packaged Power – i
Slide 14: Growth Market 1: Industrial Syngas – Hydrogen
Growth Market 1: Industrial Syngas – Hydrogen HYDROGEN: • SGT to supply high - purity pipeline hydrogen (H2) – to local refineries for cleaner transportation fuels • Replaces costlier and more time - intensive H2 derived from methanol - cracking 14 Notes: (1) Due to available capacity, (2) “Opinion
Slide 15: Growth Market 1: Industrial Syngas – Fuels
Growth Market 1: Industrial Syngas – Fuels INDUSTRIAL FUELS: • SGT economically advantaged clean coal NG replacement projects – robust industrial fuels new business pipeline • Aluminum Corporation of China (CHALCO): China’s largest alumina and primary aluminum producer and the world’s second largest
Slide 16: Global Growth Market 2: iGAS Power
Global Growth Market 2: iGAS Power • Affordable clean power for the developing world • SGT able to run low - cost, low - rank feedstocks • SGT ability to convert to biomass/MSW co - feed in future, hedge for future CO2 liability • Positive Project Economics when Power > 6 cents per kilowatt - hour •
Slide 17: Potential Growth Market 3: Substitute Natural Gas
Potential Growth Market 3: Substitute Natural Gas • SGT superior environmental performance and lower cost for substitute natural gas • Clean syngas for conversion into pipeline natural gas • Coal - based syngas is converted to low cost natural gas • SES syngas is high in methane, reduces cost of met
Slide 18: SGT China JV Plants
SGT China JV Plants 18 Yima JV – 3 SGT Systems (2+1) ©2016 Synthesis Energy Systems, Inc., All Rights Reserved Yima JV Plant – Henan Province • 25% SES, 75% Yima Coal Industry Group – Joint Venture • Higher pressure, 10 bar operation • 377,000 metric tons per year (MPTY) nameplate methanol design ca
Slide 19: SES In Australia
SES In Australia ©2016 Synthesis Energy Systems, Inc., All Rights Reserved Callide Thermal Coal Mine – Central Queensland, Australia • Batchfire Resources Pty Ltd. acquired mine in October 2016 • SES holds an approximate 11% ownership position in Batchfire Resources, a privately owned Australian Com
Slide 20: Growing Pipeline of Opportunities
China USA India Africa Australia South America Other Asia Power SNG Ind. Fuel DRI Chemicals Fertilizers Liquid Fuel Other Growing Pipeline of Opportunities SES Revenues x Technology licensing, equipment and services x SES equity - position industrial syngas projects in commercial development x Proof
Slide 21: SES Catalysts
SES 12 - Month Catalysts • Equity Investment – Advance initial Dongying projects – for Lijin County Binhai New District and Shandong Dongying Hekou District Government – for pipeline hydrogen cleaner transportation fuels, and bring additional clean energy projects into the platform – Work with Weiji
Slide 22: SES Catalysts - JV Assets
SES 12 - Month Catalysts • JV Assets - Tianwo - SES: Work with China JV to help focus on profitability of new SGT projects, as well as on securing additional projects to further expand SGT commercialization - Yima JV Plant: Work with JV partner to continue to improve the facility’s business and fina
Slide 23: Appendix
APPENDIX • Leadership • Management • Board of Directors • Partners & Collaborators • Includes Tianwo - SES current projects • Global Natural Gas: Long - term Asian Outlook • Global Coal Reserves 23
Slide 24: Management
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, with GE and C
Slide 25: Management (continued)
John Winter, Ph.D., Chief Engineer • 30 - year petrochemical industry experience, including 15 years of gasification technology research, engineering design, tech services and gasification operations. Past senior positions include GE Energy, Texaco/ChevronTexaco, Allied Plastics and Dow Chemical • P
Slide 26: Board of Directors
Lorenzo Lamadrid , Chairman • Ten - year tenure as Chairman of SES. Since 2001, Managing Director of Globe Development Group, LLC, a firm that specializes in the development of large scale energy, power generation, transportation and infrastructure projects in China and provides business advisory se
Slide 27: Board of Directors (continued)
Harry Rubin • Chairman of Henmead Enterprises, with a particular focus on advising companies regarding strategy, acquisitions and divestitures. Broad executive and financial management background spans computer software, entertainment and consumer brand industries, with companies including GT Intera
Slide 28: Partners & Collaborators - China
China • SES Joint Project Development & Investment Partner: China Environment State Investment Co., Ltd (CESI) • State - owned enterprise established in Beijing under the China Ministry of Environmental Protection • Charged with, and funded to, develop and invest in the energy conservation and envir
Slide 29: Tianwo-SES Current Projects
Tianwo - SES Current Projects: • Aluminum Corporation of China (CHALCO): China’s largest alumina and primary aluminum producer and the world’s second largest alumina producer • 3 industrial fuel supply plants with 7 total SES gasification systems – Secured by THVOW, total value order awarded 650 mil
Slide 30: Partners & Collaborators - India and iGAS Power
India • SES Regional Marketing Partner : Simon India Limited • Engineering, procurement and contracting company, wholly owned subsidiary of Zuari Global Limited – Zuari and Simon India are member companies of the Adventz Group, a $3 billion Indian conglomerate comprising 23 companies in various indu
Slide 31: DRI for Steel Production Partners
DRI for Steel Production • SES Exclusive Global Partner: Midrex Technologies, Inc. • Midrex Technologies is a subsidiary of Kobe Steel, is world leader with about 60% market share • Expanded global strategic alliance in July 2015 - Midrex assumed lead position marketing fully integrated cleaner coal
Slide 32: Global NG: Long-term Asian Outlook
• Long - term natural gas price outlook in Asia supports coal gasification project development • SGT’s ability to use virtually all grades of coal, including abundant lignite and coal wastes, bring additional economic advantages • Indigenous domestic natural resources = government/regional energy in
Slide 33: World Coal Reserves
USA Total: 237.3 Bituminous & Anthracite: 108.5 Sub - bituminous & Lignite: 128.8 Africa Total: 31.8 Bit & Anthracite: 31.6 Sub - bituminous & Lignite: 0.2 India Total: 60.6 Bituminous & Anthracite (high ash): 56.1 Sub - bituminous & Lignite: 4.5 Australia & NZ Total: 76.7 Bit & Anthracite: 37.4 Sub
Slide 34: Investor Relations Contact
Synthesis Energy Systems, Inc. Investor Relations: MDC GROUP Contact: David Castaneda (414) 351 - 9758 | IR@synthesisenergy.com Nasdaq: SYMX www.synthesisenergy.com GROWTH WITH BLUE SKIES
Synthesis Energy Systems — Investor Presentation (November 2016) on 6ix