Environmental Clean Technologies Limited · ASX:ECT
Environmental Clean Technologies — Investor Presentation (September 2015)
46 slides from Environmental Clean Technologies's investor presentation, September 2015
Slide 1: Corporate Presentation
Corporate Presentation September 2015 “Upgrading low value resources, improving environmental outcomes”
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: Table of Contents
Table of Contents page page page page page 4 13 26 39 44 Section 1 Section 2 Section 3 Section 4 Section 5 Corporate Information Coldry Technology Matmor Technology Projects Value Proposition 3
Slide 4: Corporate Information
Section 1 Corporate Corporate( (Overview Company( (Highlights Company( Projects Information Board( (&(Management Corporate( Milestones Strategic( Partners
Slide 5: Corporate Overview
Issued Capital (as at 23 Sept 2015) Corporate ASX Code ESI Overview Shares (pre-issue) Options ESIOA 2,547 M 1,258 M Options ESIOB 896 M Market Capitalisation ~$43M Share price chart (A¢ per share) Share Price 1.7¢ 3 2015 Trading Range 0.6¢ - 2.8¢ 2.5 Cash and Debt Cash (as at 30 June 2015) $940k 2
Slide 6: Corporate Overview
Corporate ASX Listed since 2006 Technology R&D & Commercialisation Overview Energy & Resource Focus Emerging market focus, global application Unique technologies: Low rank coal upgrading – Coldry E3 Environmental Improvement Primary Iron production – Matmor E3 – Drivers for ECT technology adoption:
Slide 7: Company Highlights
Unique low rank coal drying technology - Coldry Company IP owned 100% by ECT and protected in all major markets Highlights H2 O World’s most efficient pre-drying process for high moisture content coals Enables low-rank coal use in downstream conversion process for high value products Innovative reso
Slide 8: Company Projects
Company Indian integrated Coldry and Matmor project Large Government of India owned partners, National Projects Minerals Development Corporation and Neyveli Lignite Corporation, for an integrated Coldry & Matmor plant. Stage 1 commenced July 2015 with construction to follow Targeted Commercialisatio
Slide 9: Board & Management
Chairman – Glenn Fozard Board & Glenn has a strong commercial background and extensive experience in finance and capital markets at both board and executive level. With a deep understanding of tailored financial solutions for SMEs in the Cleantech and Agricultural sectors, he Management supports the
Slide 10: Board & Management continued
Operations Manager & Company Secretary - Adam Giles Board & Adam has over 20 years business and management experience across both private and public sectors. His long-term involvement with the development of the Coldry and Matmor technologies and as a founding shareholder of the Management Company p
Slide 11: Corporate Milestones
Corporate Milestones 2006 2007 2013 2015 ASX Listing Matmor Test Plant Coldry Pilot Coldry Semi-continuous plant Ver. 3 Commercial- Production Detailed scale commercial- demonstration scale design (proposed) 2007 Coldry Pilot plant 2009 2015 Ver. 1 Coldry Pilot 2014 Matmor test Continuous plant Ver.
Slide 12: Strategic Partners
Strategic Partners Matmor Design Partner (tba) Engineering Advisory Project Development 12
Slide 13: Coldry
Section 2 Coldry Value( Proposition Thermal( Coal( Market The(Coldry( Process Value( (Transformation Technology( Introduction Market( Opportunity The(Low( Rank(Coal(Challenge Competing( Technology The(Drying( Challenge Coldry( Business( Model
Slide 14: Moving up the value chain
Coldry Value Matmor Iron & Steel Market High value Proposition • Natural Gas Market Conversion • Liquid Fuels Processes Opens new markets • Chars, PCI & Oils Establishes new revenue Moving up the value chain streams High Diversifies energy and High Value Efficiency Electricity Market Applications Po
Slide 15: Coldry Value Proposition: Spotlight on the thermal coal market
Incremental income from sales of upgraded product enabled by low Coldry Value marginal upgrade cost Competition – Seaborne Thermal coal trade Proposition: To gain competitive space, you must be able to displace others on the supply curve Spotlight on the With current pricing, less than half of suppl
Slide 16: Coldry technology introduction
Process Features Benefits Coldry Low temperature, low pressure Lower opex cost per tonne technology Simple, patented mechanical design Lower capital intensity, robust, reliable, lower operating & maintenance cost introduction Unique ‘Densification’ & waste heat utilisation approach Enables low tempe
Slide 17: Coldry technology introduction: product
Product Features Benefits Coldry Low moisture, Higher price, broader market applications high energy value technology Stable Won’t permanently reabsorb moisture, low spontaneous combusting risk, storable, transportable introduction Retained volatile matter Ideal for coal conversion technologies, yie
Slide 18: The low rank coal challenge
High moisture content The low Low energy content Not suitable for use in black coal applications or further rank coal upgrading challenge CO2 intensive power generation Significant risk of spontaneous combustion compared to bituminous coal Limits storage volume and duration To enable low rank coal I
Slide 19: The Drying Challenge
“It is difficult to dry low rank coal with high efficiency. For hard coals, the The Drying 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 Challenge (~2.27MJ/kg). In contrast a considerable portion
Slide 20: Coldry Process
“One distinct advantage of Coldry is the relative low heat requirements in Coldry the drying process, allowing for the opportunity to make use of waste heat from an industrial facility or power plant.” Process Dr Victor Der Former Assistant Secretary for Fossil Energy, US Dept. of Energy General Man
Slide 21: Coldry Value Transformation
The marginal upgrading cost supports substantial value add through allowing low-rank coal to service higher value coal markets, with Coldry Value significant margin. Transformation 1.84 tonnes raw coal* 1 tonne Coldry “Given India’s large demand- Moisture ~53% supply mismatch of thermal Moisture <15
Slide 22: Market Opportunity
World Recoverable Coal Reserves & consumption Market Content Carbon / Energy Content Opportunity of Coal % of Moisture content 55% Low rank coal 45% High rank coal World Reserves 23% Lignite 32% Sub-bituminous Bituminous % of 14% 13% Sub- 73% Bituminous Consumption Lignite bituminous Coldry enables
Slide 23: Market Opportunity Global
Market Opportunity Global Application Major low rank coal reserves Australia China Indonesia India & Pakistan Turkey Thailand Germany Fast/Fact/– Capacity/represents/significantly/more/than/500/years/of/ Czech / Serbia / Poland … North America ! consumption/ at/current/rates,/i.e./ample/space/for/gr
Slide 24: Competing technology: Higher OPEX Cost
Coldry is the world’s first low temperature, low pressure drying Coldry method capable of producing a black coal equivalent product via a low cost, zero CO2 process. Competitors 150 Low-rank coal This graph is a proxy for drying processes process energy efficiency. Coldry High temperature and 100 Hi
Slide 25: Coldry Business Model
Coldry Business Model Key Key Value Customer Customer Partners Activities Propositions Relationships Segments • Thermax • Fundamental R&D • Cost effective low rank Direct relationships with: Process integration • ARUP • IP development & coal drying • Mine and power station • Mine & power station • J
Slide 26: Matmor
Section 3 Matmor Value( Proposition Technology( Introduction Inputs Commercialisation( Pathway Opportunity Technology( Introduction Steel( Intensity Technical( Comparisons “The worlds first low rank coal based Process( Overview Business( Model primary iron making solution.”
Slide 27: Matmor Value Proposition
Matmor Lower cost raw materials Value Lower capital cost plant Proposition Lower emissions Higher value products Resource diversity & security Waste remediation solution Coldry provides essential feed preparation step 27
Slide 28: Matmor technology introduction
Process Features Benefits Matmor Uses low-rank coal • Low rank coal replaces coking coal and alternative iron • Wide range of iron oxide sources technology ore materials. • Ability to use lower grades of iron ore • Lower raw material cost introduction • Diversified supply chain • Decoupling from cok
Slide 29: Matmor technology introduction: product
Product Features Benefits Matmor High Fe yield • Metallic yield of 95%+ means maximum value extracted technology • Fe content of the finished product is 95%-99%, delivering a high quality iron with minimal impurities introduction High Fe content • • Low impurities Lower downstream processing cost Fl
Slide 30: The 'alternative raw material' opportunity
Matmor enables a lower cost primary iron production The ‘alternative pathway by leveraging two unique features: raw material’ opportunity 1 Decoupling iron making from coking coal 1) By utilising the rich organic chemistry within low rank coal, the Matmor process is able to deliver a high quality pr
Slide 31: The 'steel intensity' challenge
The most powerful forces driving steel demand are aligned. As economies The ‘steel develop and modernise, steel consumption per capita grows, reflecting a wide range of growing applications – basic infrastructure, water treatment intensity’ plants, food processing distribution centres, roads, bridge
Slide 32: Matmor Process
Matmor Process Inputs Low/rank/ Waste/ Iron/Oxide Flux Energy coal (recovered) Process Matmor/ Coldry Primary/ Composite/ Conditioning Drying Retort Processing Pellets Coldry Process = Matmor Feedstock Preparation plant DRI Melt stage Matmor employs a different chemical pathway, ! making it the worl
Slide 33: Inputs
The Matmor process combines metal oxide bearing media, low rank coal and a Inputs flux via the Coldry process to produce a composite pellet Feedstock flexibility: Matmor can reduce the following metal oxides to metal: Creating higher Iron Ore: value product • Hematite: Fe2O3 opportunities • Magnetit
Slide 34: Matmor Commercialisation Pathway
Matmor Commercialisation Pathway Current stage of development Bench Test Pilot Commercial Demo Scale Scale Scale Scale Scale >200,000 ~8,000 tpa ~80,000 tpa tpa capacity capacity capacity Bench Test Unit Test Plant Pilot Plant • 10kg output • 1 tonne per day • 1 tonne per hour • Batch Process • Semi
Slide 35: Matmor Process vs. Blast Furnace
Matmor Process vs. Blast Furnace Low/rank/ coal Matmor Process High/ Lower Cost Iron/ Coldry/ Matmor/ Further/ Quality Simpler Oxide Process Process processing Iron More flexible Less CO2 Flux • Lower'cost'inputs Environmental' Efficient High/quality/product: • Utilise/domestic/ Improvement Lower/te
Slide 36: Benefits vs Blast Furnace
Benefits vs Coking coal is replaced by low rank coal which can cost as little as $5 a tonne to mine Diversified raw material supply; in addition to high grade iron ore, access to the Blast ‘above ground ore body’ or low grade (waste) iron oxide sources is enabled, increasing resource security Furnac
Slide 37: Benefits vs other methods
Iron Production Benefits vs Relative Raw Material Cost vs. Time & Temperature 20 other 18 Low temperature + low Residence Time (hours) 16 Direct Reduced Iron residence time = lower cost methods 14 12 10 and higher productivity 8 Blast Furnace 6 4 Matmor 2 Lower Temperature 0 700 900 1100 1300 1500 1
Slide 38: Matmor Business Model
Matmor Business Model Key Key Value Customer Customer Partners Activities Propositions Relationships Segments • Matmor Design Partner • Fundamental R&D Matmor Direct relationships with: Process integration (tba) • IP development and • Cost effective primary • Mine and power station • Integrated stee
Slide 39: Projects
Section 4 Projects India(FColdry India(F Matmor India(– Project( Pathway Capital( Requirement
Slide 40: India is a place to be for Coldry
India is in a major growth phase: India: Energy demand increasing, outstripping domestic primary energy source growth The place to be With over 4.5 Bn tonnes of proved recoverable reserves in India, low rank coal is able to play a major supporting role via application of ECT for Coldry technologies
Slide 41: India is a place to be for Matmor
India is in a major growth phase: India: Infrastructure development requiring substantial increases in iron & steel production The place to be Domestic coking coal reserves, effectively zero, heavily reliant on imports Low value resources (low rank coal & iron ore fines & slimes) able to play a majo
Slide 42: India Project
India Project Objective: Development of an integrated Coldry demonstration + Matmor pilot facility in India Launchpad for global commercial rollout Partners: Neyveli Lignite Corporation is the custodian of India’s lignite resources, the lead partner on Coldry and the project host The NMDC (National
Slide 43: India Project Pathway
Demonstrate as a platform for subsequent larger scale India Project commercial roll out ‘Demonstration’ achieves: Pathway Capital defined O&M capability displayed Product quality, value and use validated Business model proven Complete Coldry Module design 2013 Coldry Feasibility Study Coldry EPC par
Slide 44: ECT Value Proposition
Section 5 ECT Value Summary Proposition
Slide 45: Value Proposition for Low rank coal asset owners
Value Proposition for Low rank coal asset owners Incremental sales from existing low rank coal assets into higher value markets: Coldry - participate in thermal coal markets on a competitive marginal cost basis against thermal coal miners. Matmor - participate in the iron and steel markets with a fu
Slide 46: Thank you.
Thank you. Glenn Fozard Ashley Moore Chairman Managing Director info@ectltd.com.au +613 9939 4595 46
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