64 slides from Environmental Clean Technologies's investor presentation, Nov 11, 2016
Slide 1: Corporate Presentation
Corporate Presentation November 2016 “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: Contents
Contents Section Section Section Section Section 1 2 3 4 5 Page 4 Page 19 Page 32 Page 45 Page 50 Corporate Information Coldry Technology Matmor Technology Commercialisation Projects Strategy
Slide 4: Corporate Information
Section 1 Corporate Information ˃ Corporate Overview ˃ Board and Management ˃ Corporate Structure ˃ Purpose, Mission, Vision ˃ Values ˃ Business Model ˃ Projects ˃ Milestones ˃ Partners
Slide 5: Corporate Overview
Corporate Overview Issued Capital (as at 30 June 2016) ASX Code ESI Shares (pre-issue) 2,738 M Options ESIOA 1,211 M Options ESIOB 858 M Share price chart (A¢ per share) Market Capitalisation ~$54 M Share Price 2.0¢ 0.035 2015-16 Trading Range 1.0¢ - 3.5¢ 0.03 Cash & Debt (as at 30 June, 2016) Cash
Slide 6: Board and Management
Board and Management Glenn Fozard Executive Chairman Richards Moore Fozard Smith Glenn has a strong commercial background and over 16 years experience in finance and Director capital markets at both board and executive level. With a deep understanding of tailored financial solutions for SMEs in the
Slide 7: Board & Management cont.
Board & Management cont. Adam Giles Corporate Communications & Company Secretary Adam has over 25 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
Slide 8: Corporate Structure
Corporate Structure Key Responsibility Areas Board of Directors • Strategy & Planning Executive Non-Executive • Audit & Risk Committee • HR & Governance Committee • Company Secretariat • Expert support and oversight to operations Chair MD Company Secretary Functional Structure MD Corporate Services
Slide 9: Corporate Strategy
Corporate Strategy 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 Resources)
Slide 10: 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 11: 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 12: Solving Problems
Solving Problems 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 economic growth. This transition creates grea
Slide 13: 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 protected in all major markets technologies ˃ World’s most efficient pre-drying process for high moisture content coals Minerals processing ˃ Enables l
Slide 14: Emerging Technology Solutions
Emerging Technology Solutions “Frugality drives Hydrogen 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 from low of a tight box
Slide 15: Current Company Projects
Current Company Projects Bacchus Marsh High Volume Test Facility (HVTF) ˃ Facility to support continuous improvement, further R&D, with capacity targeting up to 25,000 tpa Coldry pellet output for enhanced R&D program data collection at large pilot scale ˃ Output may find a market consistent with R&
Slide 16: Future Company Projects
Future Company Projects Australian Plant Opportunities ˃ Scoping study to start FY2017 for Australian based plants which may include: ˃ Vic and SA Integrated Demonstration Plant ˃ Vic Coldry plant integrated with pyrolysis or gasification Indonesia Integrated Industrial Plant ˃ Large lignite reserve
Slide 17: Corporate Milestones
Corporate Milestones 2013 2016 2007 Coldry Pilot 2014 Matmor plant Ver. 3 Coldry Test Plant Detailed Commercial- 2019 Semi- commercial- Demo scale 2017 Industrial 2006 continuous scale design design Demo Plant Plant Project ASX Listing Production completed Construction Start 2007 Tri-partite 2009 20
Slide 18: Our Partners
Our Partners Projects & Engineering Corporate Business & Services Development Technology Corporate Presentation November 2016 | 18
Slide 19: Coldry Technology
Section 2 Coldry Technology ˃ Value Proposition ˃ Thermal Coal Market ˃ Technology Introduction ˃ The Low Rank Coal Challenge ˃ The Drying Challenge ˃ The Coldry Process ˃ Value Transformation ˃ Market Opportunity ˃ Competing Technology ˃ Coldry Business Model
Slide 20: Coldry Value Proposition
Coldry Value Proposition ˃ Opens new markets Matmor Iron & Steel Market ˃ Establishes new revenue High value streams ˃ Diversifies energy and Conversion • Natural Gas Market • Liquid Fuels resource options Processes • Chars, PCI & Oils ˃ Upward revaluation of stranded or low value low Moving up the
Slide 21: Coldry Value Proposition: Thermal Coal Market
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 of production is the opportunity for low enabled by low marginal 100 rank coal asset
Slide 22: 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, patented Lower capital intensity, mechanical design robust, reliable
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 offers an efficient and cost- 1.84
Slide 28: 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- % of 55% Low rank coal 45% High rank coal rank coal applications World Reserves
Slide 29: 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 30: 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 31: Coldry Business Model
Coldry Business Model Value Customer Revenue Streams Propositions Segments ˃ Cost effective low rank coal drying ˃ License fees – plant sales ˃ Process integration ˃ Open new markets ˃ Royalty fees – plant capacity ˃ Mine & power station owners ˃ Establish new revenue streams deployed ˃ Conversion p
Slide 32: Matmor Technology
Section 3 Matmor Technology ˃ Value Proposition ˃ Technology Introduction ˃ Opportunity ˃ Steel Intensity ˃ Process Overview ˃ Inputs ˃ Commercialisation Pathway ˃ Technical Comparisons ˃ Business Model
Slide 33: Matmor Value Proposition
Matmor Value Proposition ˃ Lower cost raw materials Business-as-usual use of lignite is relatively low value. Matmor allows lignite to be used to produce high value metal ˃ Lower capital cost plant products. ˃ Lower emissions High value ˃ Higher value products Coldry Matmor Iron & Steel Steel Making
Slide 34: Matmor technology introduction
Matmor 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 coki
Slide 35: Matmor technology introduction
Matmor 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 stee
Slide 36: The 'alternative raw material' opportunity
The ‘alternative raw material’ opportunity There exists a vast, ‘above Matmor 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 a
Slide 37: 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 38: Matmor Process
Matmor Process Inputs Iron ore Low-rank coal Waste Heat 1 2 3 4 5 6 7 8 9 Mix & Condition Dry Composite Matmor DRI Steel Casting Finished extrude Pellets Retort Pellet Refining Steel product (Electric Arc Furnace) Matmor employs a different chemical ! pathway, making it the world’s first and only lo
Slide 39: Inputs
Inputs Creating higher value ˃ The Matmor process combines metal oxide bearing media, low rank coal and a flux via the product opportunities Coldry process to produce a composite pellet ˃ Feedstock flexibility: Matmor can reduce the following metal oxides to metal: ˃ Iron Ore: ˃ Hematite: Fe2O3 (Lum
Slide 40: Matmor Commercialisation Pathway
Matmor Commercialisation Pathway Current stage of development Commercial Bench Test Pilot Commercial Scale Scale Scale Scale Scale Demo Expansion ~1 to 2 tph ~125,000 tpa ~500,000 tpa capacity capacity capacity Bench Test Unit Test Plant ˃ 10kg output ˃ 1 tonne per day Pilot Plant Commercial Demo Co
Slide 41: Matmor Process vs. Blast Furnace
Matmor Process vs. Blast Furnace Matmor Process Low rank coal ˃ Lower Cost ˃ Simpler Steel Refining Iron Direct Reduced ˃ More flexible Oxide Coldry Process Matmor Process Iron Pellet Electric Arc Furnace ˃ Less CO2 Flux ˃ Lower cost inputs Environmental Improvement Efficient Product: ˃ Utilise dome
Slide 42: 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 Spot (right) Tradi
Slide 43: Benefits vs other methods
Benefits vs other methods Iron Production Relative Raw Material Cost vs. Time & Temperature ˃ Lower Temperature 20 18 Low temperature + low ˃ Lower residence time, Residence Time (hours) 16 Direct Reduced Iron residence time = lower higher productivity 14 cost and higher 12 productivity ˃ Lower Cost
Slide 44: Matmor Business Model
Matmor Business Model Value Propositions Revenue Streams Customer Segments ˃ Cost effective primary iron production ˃ Technology IP - Royalty fees from plant Process integration ˃ Waste remediation solution capacity deployed ˃ Integrated steel plants ˃ Open new markets ˃ Detailed Design and OEM – ve
Slide 45: Commercialisation Strategy
Section 4 Commercialisation Strategy ˃ Commercialisation Pathway ˃ Revenue Model ˃ Commercialisation – next steps ˃ Value Proposition for low rank coal owners
Slide 46: Commercialisation Pathway
Commercialisation Pathway Technology Fundamental Scale Market Commercial Applied R&D Market Pull Push R&D Demonstration Development Application 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 47: Revenue Model
Revenue Model Technology IP Royalties: IP royalties represent a primary income stream to ECT in the future. Current model for India is based on industry benchmark pricing for replacement product equivalents and the installed plant capacity Original Equipment Manufacturing ECT will develop and secure
Slide 48: Commercialisation – Next Steps
Commercialisation – Next Steps ˃ Transition to Revenue: The initial project in India will represent a transition from an ‘investment model’ to a ‘revenue model’ due to its ‘Demonstration and Integrated’ nature, with opportunities to optimise economics following successful operational proving. ˃ Targ
Slide 49: Market Pull - Value Proposition for Low rank coal asset owners
Market Pull - Value Proposition for Low rank coal asset owners FOB Cash Costs* Incremental sales from existing Adjusted to 6300kCal/kg energy Content low rank coal assets into higher 120 value markets: This ‘gap’ between market price and cost 100 ˃ Coldry Current market price of production is the op
Slide 50: Projects
Section 5 Projects ˃ The India Project ˃ India: The place to be for Coldry ˃ India: The place to be for Matmor ˃ Project pathway ˃ Techno-Economic Feasibility Study ˃ Bacchus Marsh High Volume Test Facility
Slide 51: India Project
India Project Objective: ˃ Development of an integrated Coldry demonstration + Matmor pilot facility in India ˃ Launchpad for global commercial rollout Partners: ˃ NLC India Limited is the custodian of India’s lignite resources, the lead partner on Coldry and the project host ˃ NMDC Limited is India
Slide 52: India: The place to be for Coldry
India: The place to be for Coldry India is in a major growth phase: ˃ Energy demand increasing, outstripping domestic primary energy source growth ˃ 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 technolog
Slide 53: India: The place to be for Matmor
India: The place to be for Matmor India is in a major growth phase: ˃ Infrastructure development requiring substantial increases in iron & steel production ˃ Domestic coking coal reserves effectively zero, heavily reliant on imports ˃ Low value resources (low rank coal & iron ore fines & slimes) abl
Slide 54: India Project Pathway
India Project Pathway ˃ Demonstrate as a platform for subsequent larger scale Commissioning, operations commercial roll out and validation 2018 ˃ ‘Demonstration’ achieves: Financing, Construction ˃ Capital defined Project Agreements 2017 ˃ O&M capability displayed ˃ Product quality, value and use va
Slide 55: India: Techno-Economic Feasibility Study
India: Techno-Economic Feasibility Study Executive Summary ˃ Provides assessment of a proposed integrated Coldry / Matmor Plant, for the production of steel billet, at Neyveli, India ˃ Comparison against incumbent technologies of Blast Furnace (BF) and Coal-based Direct Reduced Iron (DRI) ˃ Led by M
Slide 56: India: Techno-Economic Feasibility Study
India: Techno-Economic Feasibility Study Financial Analysis BF – BOF DRI - EAF C/M - EAF C/M - EAF Blast Furnace - Basic Oxygen Coal Based DRI - Electric Arc Coldry / Matmor - Electric Coldry / Matmor - EAF + Furnace Furnace & Power Gen Arc Furnace Power Generation & Power Gen Case / Scenario Base C
Slide 57: India: Techno-Economic Feasibility Study
India: Techno-Economic Feasibility Study Outcomes: ˃ Energy & Resource security; ˃ Through the Coldry / Matmor innovation, lignite can be used instead of higher-cost coking coal. Soft iron ores, fines, and slimes can move up the value chain, as diversified sources of supply and displace the usage of
Slide 58: India: Techno-Economic Feasibility Study
India: Techno-Economic Feasibility Study Outcomes: ˃ Economic security; Underpinned by energy and resource security, economic security drives growth and improvement in the standard of living ˃ Enhancement of economic security can be accomplished through the application of technology to achieve diver
Slide 59: High Volume Test Facility (HVTF)
High Volume Test Facility (HVTF) This project is at the Summary of Project Drivers heart of our core ˃ Enhanced R&D capability thanks to broader and more flexible operational values of Frugal parameters Innovation, where, in ˃ OHS&E improvements the process of ˃ Automation enhancements innovating an
Slide 60: Bacchus Marsh HVTF
Bacchus Marsh HVTF High Volume Test Facility ˃ OHSE improvements ˃ Improved flexibility and range of operation, allowing broader control of independent variables ˃ Improved environmental performance ˃ Enhanced capability to conduct fundamental and applied R&D across meaningful volumes Corporate Pres
Slide 61: Bacchus Marsh HVTF
Bacchus Marsh HVTF Isolation of top and bottom of PBD results in improved dust containment and lower maintenance requirements Modified cross-current open-circuit air Capacity and flexibility in operational parameters Increased output system capacity & flow system for greater simulation is enhanced b
Slide 62: Bacchus Marsh HVTF
Bacchus Marsh HVTF Coldry Primary Processing train, featuring (1) raw coal bunker, (2) surge hopper, (3) mill, (4) extruder and (5) conditioning belt Raw lignite receiving system improvements: ˃ All weather Motor upgrades capability ˃ Variable speed 1 ˃ Hopper and ˃ Capability improvements conveyor
Slide 63: Summary
Section 6 Summary ˃ Technologies with a disruptive edge ˃ We commercialise innovative technologies to increase the economic and environmental benefits derived from low grade, low rank and waste resources ˃ Low cost input with a high value output provides for a competitive edge for all adopters ˃ Eme
Slide 64: Thank you.
Thank you. Glenn Fozard Chairman glenn.fozard@ectltd.com.au +613 9939 4595 Ashley Moore Managing Director ashley.moore@ectltd.com.au +613 9939 4595