Slide 1: LD Micro Conference Investor Presentation
LD Micro Conference Investor Presentation June 9, 2016
Slide 2: Ener-Core ecostations
ENER-CORE ecostations ABER OD
Slide 3: Disclaimer / Forward-Looking Statements
3 Disclaimer / Forward - Looking Statements Ener - Core, Inc . (“ Ener - Core”) cautions that this presentation (including the oral commentary that accompanies it) may contain forward - looking statements that involve substantial risks and uncertainties . All statements, other than statements of his
Slide 4: Key Discussion Points
Key Discussion Points Key Progress To - Date What do we Do? Since launching commercially in 2014 , sold eight CHP systems (value = $ 7 . 6 Million) Completed scale - up of system, from 0 . 25 MW to 2 MW ( 8 x increase in power) ; currently testing . Large sales pipeline of CHP + Pollution Abatement
Slide 5: Utilizing Waste: The Rockefeller Effect
At the turn of the 19 th century, John D . Rockefeller was in the kerosene refinery business . A ll kerosene refiners used to throw away barrels of a “noxious by - product” into the creeks and rivers ; this toxic runoff made Ohio’s Cuyahoga River flammable . It was said that if a steamboat threw awa
Slide 6: Gas flared annually: What would Rockefeller do?
Over 150 billion cubic meters of gas are flared annually Monetary value = $ 65 billion Power for 100 million homes. What would Rockefeller do? We believe he would challenge his engineers to find a solution that uses these gases; thereby making industries more efficient.
Slide 7: The Basics of the Ener-Core Solution
The Basics of the Ener - Core Solution Combustion is the burning of high quality fuels, in a flame with intense heat with very short reaction times, often leading to pollution through incomplete combustion and the generation of Nox . Combustion - based power systems are unable to use most industrial
Slide 8: Power Oxidation: how it works
Ambient air + waste gases are introduced to vessel Heat generated is: Sent to a turbine to generate electricity; or Sent to a boiler to generate steam The oxidizer vessel creates the environment necessary to facilitate an exothermic oxidation reaction, without ignition (no flame) 1. Waste gases are
Slide 9: Integrating Power Oxidation into a Gas Turbine
What makes the Ener - Core ecostation different from a standard turbine? It starts with understanding the gas turbine basics Integrating Power Oxidation into a Gas Turbine
Slide 10: Integrating Power Oxidation into a Gas Turbine
1) Ambient air is drafted into the compressor where it is pressurized to match the turbine requirements . 2) Premium fuel is then mixed with the compressed air in the combustion chamber where it expands (more compression). This produces the energy required to rotate the turbine in decompression. 3)
Slide 11: Integrating Power Oxidation into a Gas Turbine
The in situ combustion chamber is effectively what prevents a gas turbine (or other power equipments ) from being able to operate on low - quality waste gases. Combustion Chamber Air Intake Turbine Integrating Power Oxidation into a Gas Turbine
Slide 12: Integrating Power Oxidation into a Gas Turbine
The Ener - Core oxidizer replaces the in situ combustion chamber with a more robust combustion chamber that provides longer residence times and can handle more challenging gases. Integrating Power Oxidation into a Gas Turbine
Slide 13: Why improve the combustion chamber?
Ener - Core Oxidizer Emissions Filter • Combustion chamber limits the turbine from being able to operate on ultra - low quality (and often highly contaminated) waste gases. • Higher tolerances for gases that can react or damage components. • Longer residence time for high destruction efficiency of c
Slide 14: Photos: MW system integrated with gas turbine
Photos 2 MW system Integrated with Gas Turbine
Slide 15: Power Oxidizer generates recurring and clean heat
Multiple value propositions + Potential partnerships Power Oxidizer Generates Recurring and Clean Heat (No ignition) Waste Industrial Gases Anaerobic Digester gas Landfill Gas VOC streams Low Emissions: < 2 ppm CO, < 1 ppm NOx Turbine Steam Boiler Steam Electricity - KWh Heat Applications Chilled Wa
Slide 16: Benefits of replacing combustion chamber with Power Oxidizer
Traditional Equipment Key Components (in traditional configuration) Benefits of Replacing Combustion Chamber with Ener - Core’s Power Oxidizer Gas Turbines For all types of equipment listed on previous columns: 1) Enables the equipment to “run” on poor quality waste gases ( typiically gases that are
Slide 17: Targeted Industries and Market Opportunity
Rendering and Animal Processing Byproducts (>600 U.S. facilities) Coal Mines (>1,000 U.S. mines) Aerospace and Defense; Semiconductor and Electronics Manufacturing (>2,200 U.S. facilities) Ethanol Plants / Distilleries (>500 U.S. facilities) Oil & Gas (>600 U.S. facilities) Targeted Industries and M
Slide 18: Customer value proposition and economics
Jan 2015 “Average” Industrial Facility: Refinery, Petrochemical Plant, Alcohol Distillery, Waste - Water Treatment Plant, etc. Annual energy costs $5 - $10 Million Waste Gas Near zero Pollution=$ Reduce Energy Costs by $3 - $6 Million per year, by USING waste gases to generate power= $ Increased E
Slide 19: Pacific Ethanol Stockton Plant to Install Cogeneration Technology
Pacific Ethanol Stockton Plant to Install Innovative Cogeneration Technology "The Stockton cogeneration system will replace most of the electricity we currently purchase from the grid and will reduce our energy costs by an estimated three to four million dollars per year . Rather than destroying was
Slide 20: Licensing Strategy
Licensing Strategy < 0.5 MW 1 to 4 MW 5 to 10 MW 10+ MW For Steam BOILERS, we plan to partner with one distinct market leader in each geographical region, such as : Ener - Core enables global manufacturers of gas turbines and boilers to commercialize their technology into low quality gas markets whe
Slide 21: Recent Successes in Commercial Deployment
Recent Successes in Commercial Deployment May, 2016 June 2016 Dec., 2014 March, 2015 Dresser - Rand closed Sales Order for 2 Ener - Core next - generation (2 MW) systems) Ener - Core & Dresser - Rand commence work on scaling up Ener - Core’s Power Oxidizer from 250kW to 2 MW (8x larger) and integrat
Slide 22: Evolution of Ener-Core's Business Model
Evolution of Ener - Core’s Business Model July, 2013 Company Goes Public & Begins Developing Sales Pipeline Dec. 2014 July 2016 Initial Business Model Direct - Sale & In - House Manufacturing of 250kW systems 1) Ener - Core must hire direct sales team 2) Gross Profits/Unit = $100k - $150k 3) Working
Slide 23: Pro forma balance sheet, order book and market capitalization
($000’s), non - GAAP presentation (unaudited) 3/31/16 Adjustments (1) Pro Forma Cash, Cash Equivalents (incl. restricted cash) $546 $3,000 $3,546 Inventory and other current assets 1,899 1,899 Net PP&E & Other Assets 5,862 5,862 Total Assets 6,409 $3,000 9,409 A/P & Accrued Liabilities 3,039 3,039 D
Slide 24: Intellectual Property and Industry Awards
Intellectual Property and Industry Awards Ener - Core owns the exclusive rights to protect the design and utilization of Power Oxidation 69 patent applications filed worldwide 39 patents granted worldwide, all awarded in last 2 years More than 150 total independent claims and 1 , 000 dependent claim
Slide 25: Rising cost of complying with global emissions standards
The cost of complying with global emissions standards is constantly increasing as the standards become more and more stringent. Zero Flaring by 2030 Initiative 750 billion kWh of energy in wasted associated gas flared at oil extraction facilities 1 73 countries and over 1,000 industrial companies su
Slide 26: The Ener-Core Team
The Ener-Core Team ecostation powered by _ ENER-CORE
Slide 27: Key Management
Key Management Alain Castro, Chief Executive Officer and Board Member • 23 years experience in energy sector . • Previously, President of Akuo Energy Americas, which has developed and financed approx . € 1 Billion in renewable energy infrastructure projects . • Previously Partner at Ernst & Young Co
Slide 28: Board of Directors
Board of Directors Michael Hammons, Chairman of the Board • Diverse domestic and international experience across multiple verticals such as telecommunications, energy, automotive, aerospace and defense, data storage, enterprise software, and electronic hardware . • Leadership positions including CEO
Slide 29: Board of Directors (cont'd)
Board of Directors (cont’d) Dr . Christopher J . Brown, Board Member • Principal at SAIL Capital Partners . • Chris’ technical background includes a pioneering accomplishment in the field of MEMS cryotribology , the study of surface friction on the micro and nano length scales at cryogenic temperatu
Slide 30: Thank You
THANK YOU Ener - Core.com Closing Remark ”As the world continues to take greenhouse gas emissions more seriously, most companies seem to be focused on destroying or sequestering the industrial emissions . We believe that industrial emissions are not really the problem, but are actually the symptom o