Parkway Corporate Limited · ASX:PWN
Parkway Corporate — Corporate Update (June 2023)
58 slides from Parkway Corporate's corporate update, Jun 22, 2023
Slide 1: QBS Releases Master Plan Presentation
ASX Announcement 22 June 2023 QUEENSLAND BRINE SOLUTIONS (QBS) RELEASES: MASTER PLAN PRESENTATION Highlights § Master Plan presentation provides details on improving the sustainability of the CSG industry. § Roadmap for addressing waste brine and salt challenges and creating substantial value. § Tec
Slide 2: Master Plan and QBS overview
Subject to successful commercial-scale project execution, Parkway’s proprietary process technology package has a realistic opportunity of becoming the best available technology (BAT) and provide a complete industry-wide solution through QBS. Parkway’s technology package been demonstrated to eliminat
Slide 3: Comments from Group Managing Director & CEO
COMMENTS FROM GROUP MANAGING DIRECTOR & CEO Parkway’s Group Managing Director & CEO, Bahay Ozcakmak, makes the following comments: “ “The development of our Master Plan, for dealing with CSG derived waste brine and salt disposal related challenges across the entire Queensland CSG industry, is an amb
Slide 4: Parkway Investor Hub
PARKWAY INVESTOR HUB To stay up to date with the latest news, access additional investor related resources including research reports and interact with Parkway by posting questions and feedback through a Q&A function, we encourage investors to sign-up to the Parkway Investor Hub. How to sign-up to t
Slide 5: Master Plan Concept
MASTER PLAN CONCEPT 22 June 2023 Bahay Ozcakmak ASX: PWN | pwnps.com Group Managing Director & CEO
Slide 6: Disclaimer
Disclaimer Forward-Looking Statements Completeness and Accuracy of Information This presentation may contain forward-looking statements. The No representation or warranty is made as to the accuracy, completeness or correctness words “continue”, “expect”, “forecast”, “potential” and other of the info
Slide 7: Contents
Contents Outline Key Definitions APPEA Australian Petroleum Producers & Exploration Association 1. Introduction to QLD CSG-LNG Sector page 4 BAT Best Available Technology 2. The Waste Brine & Salt Challenge page 9 CAPEX Capital Expenditure CSG Coal Seam Gas 3. The QBS Technology-Based Solution page
Slide 8: 1: Introduction to QLD CSG-LNG Sector
1: Introduction to QLD CSG-LNG Sector Overview Presentation Outline § Queensland Coal Seam Gas (CSG) Industry § Section 1: Introduction to QLD CSG-LNG Sector § Overview of Queensland CSG-LNG Projects § Section 2: The Waste Brine & Salt Challenge § CSG Water Production § Section 3: The QBS Technology
Slide 9: Queensland Coal Seam Gas (CSG) Industry
Queensland Coal Seam Gas (CSG) Industry Gas Resources § The majority of coal seam gas (CSG) resources and reserves in Queensland, are hosted within the: § Bowen Basin, and § Surat Basin. Investment Profile § During the early 2010’s, >$80 billion invested in building 25 Mtpa in liquefied natural gas
Slide 10: Overview of Queensland CSG-LNG Projects
Overview of Queensland CSG-LNG Projects § Globally significant UPSTREAM JOINT VENTURE PARTNERS upstream CSG operations GAS OPERATIONS &/OR SHAREHOLDERS § Upstream CSG operations, supply gas to 3 downstream GLNG PROJECT LNG plants in Gladstone, Queensland APLNG PROJECT Downstream Gas Operations SHELL
Slide 11: CSG Water Production
CSG Water Production Where does the gas and water come from? § CSG is an unconventional gas resource found in coal deposits. § The production of gas requires the dewatering (removal of groundwater from) the coal seams, to allow the gas to flow to surface. Complex CSG water requires treatment § The C
Slide 12: QLD CSG-LNG Industry and Parkway Timeline
QLD CSG-LNG Industry and Parkway Timeline CSG Industry Milestones APPEA released landmark Queensland Government Commencement of First CSG derived LNG report: Queensland gas: released the: Coal Seam domestic CSG production cargo exported from end-to-end water use, Gas Brine Management in Queensland G
Slide 13: 2: The Waste Brine & Salt Challenge
2: The Waste Brine & Salt Challenge Overview Presentation Outline § CSG Brine & Salt Challenges in Queensland § Section 1: Introduction to QLD CSG-LNG Sector § Existing Desalination Plants Produce Waste Brine § Section 2: The Waste Brine & Salt Challenge § Waste Brine Contains Significant Waste Salt
Slide 14: CSG Brine & Salt Challenges in Queensland
CSG Brine & Salt Challenges in Queensland Overview § Production of CSG, results in large volumes of brine production, all of which are currently stored in brine ponds on an “interim” basis. § Industry, through APPEA, has explored range of options, over many years, resulting in only 1 viable option,
Slide 15: Existing Desalination Plants Produce Waste Brine
Existing Desalination Plants Produce Waste Brine Desalination Process 16 major desalination § Network of large reverse plants treat brackish osmosis (RO) desalination water to produce: plants treat brackish (salty) § Fresh water (91%) CSG formation water: 4.8 GL § Reject brine (9%) 9% recovered as b
Slide 16: Waste Brine Contains Significant Waste Salts
Waste Brine Contains Significant Waste Salts ANNUAL WASTE PROFILE § Waste brine contains Based on existing Base-Case ~194,000 tonnes of waste salt, annually. BRINE TREAMENT PLANS Based on existing Base-Case § ~6,000,000 tonnes will be 4.8GL (4,800 ML) of Reject Brine produced by desalination process
Slide 17: The Scale of the Waste Salt Problem
The Scale of the Waste Salt Problem 6 million tonnes tonnes of waste salts dissolved in water (brine), The Great Pyramid of Giza, was the tallest man- over the life of 4 major existing CSG projects. made structure in the world for 3,800 years. The 4 major CSG projects in Queensland store The 2.3 mil
Slide 18: Legacy of Potash Mining in Germany
Legacy of Potash Mining in Germany “Monte Kali”, a mountain of residual waste salts from historical potash mining, overlooking the town of Heringen in Hesse, Germany. Parkway Corporate Limited (ASX:PWN) | Queensland Brine Solutions (QBS) | MASTER PLAN – Concept | 22 June 2023 www. pwnps.com | 14
Slide 19: Shell QGC – Existing State-of-the-Art Technology
Shell QGC – Existing State-of-the-Art Technology Overview § During 2011-13, QGC (BG, now Shell) invested ~$1 billion to build two large- scale brine concentration plants. § The brine concentration plants, take the reject brine from the desalination (RO) plants, and concentrate this brine approximate
Slide 20: CSG Regulatory Framework in Queensland
CSG Regulatory Framework in Queensland Overview § The regulatory framework applicable to CSG projects in Queensland is primarily determined by Queensland Government legislation governing the industry, requiring compliance with certain performance and environmental standards. In addition, CSG project
Slide 21: CSG Policy Framework in Queensland
CSG Policy Framework in Queensland Key Principles of CSG Brine Management § In March 2023, the Queensland Government released the Coal Seam Gas Brine Management Action Plan 2023-2033. § The plan reiterated (from Coal Seam Gas Water Management Policy 2012) the prioritisation hierarchy for managing sa
Slide 22: Long-Term Brine & Salt Management Options
Long-Term Brine & Salt Management Options Background § The Queensland Government as the primary environmental regulator, has over the last decade considered possible options for the long-term management of brine within the CSG industry. § APPEA Report: In working towards a solution, in 2017 the gove
Slide 23: Brine management options
Ocean Outfall (release) Brine Injection (disposal) Selective Salt Recovery (reuse) Salt Encapsulation (disposal)
Slide 24: Community Concerns & Scepticism
Community Concerns & Scepticism Community Concerns § The CSG industry in Queensland faces opposition from a range of stakeholders, mostly on environmental grounds. § The long term disposal of CSG derived brine and salts is a topic that has generated significant backlash. § The encapsulation approach
Slide 25: 3: The QBS Technology-Based Solution
3: The QBS Technology-Based Solution Overview Presentation Outline § Cracking the CSG Brine Code with Technology § Section 1: Introduction to QLD CSG-LNG Sector § Proprietary Process Technology Platform § Section 2: The Waste Brine & Salt Challenge § Process Technology Commercialisation § Section 3:
Slide 26: Cracking the CSG Brine Code with Technology
Cracking the CSG Brine Code with Technology Parkway Has Recently Achieved Multiple CSG Brine Processing Related Breakthroughs § Despite significant investment (>$100 m) by the CSG industry over many years, supported by leading wastewater solution providers, to identify a long-term solution to treati
Slide 27: Proprietary Process Technology Platform
Proprietary Process Technology Platform Overview § Provenance of core process technologies extends over a >10 year period, with extensive background intellectual property (IP), all owned by Parkway. § Incorporates proprietary features from several patented technologies, including: § aMES® - activate
Slide 28: Process Technology Commercialisation
Process Technology Commercialisation Process Optimisation § Core proprietary brine processing technology has been integrated with various pre and post treatments, to provide a comprehensive brine treatment solution. § As a process innovation, low technical risk given successful scale-up in piloting.
Slide 29: QBS – Upstream Technology Package
QBS – Upstream Technology Package Overview QBS Upstream Plant – Generalised Plant Layout § The Parkway upstream technology package available to QBS, § The QBS upstream plant concentrates waste brines derived enables the more efficient concentration and processing of from existing CSG related desalin
Slide 30: QBS – Downstream Technology Package
QBS – Downstream Technology Package Overview QBS Downstream Plant – Generalised Plant Layout § The Parkway downstream technology available to QBS, enables § The QBS downstream plants process brine concentrates the systematic conversion of waste salts in concentrated CSG from upstream plants, to prod
Slide 31: QBS – Integrated Technology Package (Hub)
QBS – Integrated Technology Package (Hub) OVERVIEW INPUT (RO Reject Brine) § Several upstream plants are integrated into a local downstream plant, to form a central processing Waste Brine Upstream Plant 1A complex (hub) incorporating the complete proprietary QBS process technology package. Upstream
Slide 32: QBS – Transforming Waste Brine with Technology
QBS – Transforming Waste Brine with Technology QBS – Master Plan WASTE BRINE Upstream Tech Brine Concentrate Brine Transport Downstream Tech (Hub) Product Profile CSG desalination QBS upstream brine Smaller (30%) volume From upstream to QBS downstream brine Saleable products (RO) reject brine treatm
Slide 33: QBS Optimisation 1: Residual Brine Reprocessing
QBS Optimisation 1: Residual Brine Reprocessing Overview QBS – Core Processing Route (Excludes Optimisation Options) § The residual waste brine (1-2% of total volume) from the Brine Concentrate Downstream Tech (Hub) Product Profile QBS downstream plant contains a number of impurities. Smaller (30%)
Slide 34: QBS Optimisation 2: Chlor-Alkali Plant Integration
QBS Optimisation 2: Chlor-Alkali Plant Integration Overview QBS – Core Processing Route (Excludes Optimisation Options) § The Chlor-Alkali process is an industrial chemical process Brine Concentrate Downstream Tech (Hub) Product Profile utilising electrolysis to convert salt (NaCl) in brine into Sma
Slide 35: 4: QBS Master Plan – Overview
4: QBS Master Plan – Overview Overview Presentation Outline § QBS Master Plan – Central Processing Hubs § Section 1: Introduction to QLD CSG-LNG Sector § QBS Master Plan – Indicative Roadmap § Section 2: The Waste Brine & Salt Challenge § QBS Master Plan – Overview § Section 3: The QBS Technology-Ba
Slide 36: QBS Master Plan – Central Processing Hubs
QBS Master Plan – Central Processing Hubs § QBS Central Processing ANNUAL WASTE PROFILE Based on existing Base-Case Hubs to convert concentrated waste brine into chemical products: QBS BRINE PROCESSING HUBS Based on Parkway tech approach § thereby eliminating waste 4.8GL (4,800 ML) of Reject Brine p
Slide 37: QBS Master Plan – Indicative Roadmap
QBS Master Plan – Indicative Roadmap Overview § The optimal timing of each QBS Central Processing Hub will be determined to ensure alignment with CSG industry requirements. § Each QBS Hub has a nominal project life of 20 years (excluding upstream), but can be extended to 25 years, if required. Proje
Slide 38: QBS Master Plan – Overview
QBS Master Plan – Overview What is Master Plan? How will Master Plan Impact Key Stakeholders? § A concept developed by Parkway to address the CSG derived § CSG Industry including CSG Operators waste brine and salt challenges in Queensland, Australia. § Provide an attractive pathway to addressing lon
Slide 39: QBS Master Plan – Near Term Priorities
QBS Master Plan – Near Term Priorities Ongoing Stakeholder Engagement § Industry § CSG project owners and operators § Australian Petroleum Production & Exploration Demonstrate that Master Plan concept, provides a Association (APPEA) vastly superior roadmap compared to all other § Regulatory Authorit
Slide 40: 5: QBS Master Plan – Value Creation
5: QBS Master Plan – Value Creation Overview Presentation Outline § CSG Industry – Waste Brine Treatment Options § Section 1: Introduction to QLD CSG-LNG Sector § CSG Industry – QBS Brine Treatment Comparison § Section 2: The Waste Brine & Salt Challenge § QBS Master Plan – Financial Benchmarking §
Slide 41: CSG Industry – Waste Brine Treatment Options
CSG Industry – Waste Brine Treatment Options Industry – Base Case Scenario (SEF) § Significant plant and SEF related CAPEX § Very high i) plant operating, ii) transport and iii) salt disposal related annual operating costs (OPEX) WASTE BRINE Brine Transport Brine Concentrators Salt Crystallisers Was
Slide 42: CSG Industry – QBS Brine Treatment Comparison
CSG Industry – QBS Brine Treatment Comparison QBS – Master Plan (Industry-Wide Solution) WASTE BRINE Upstream Tech Brine Concentrate Brine Transport Downstream Tech Product Profile Product 1 Caustic soda Lifetime Revenue Product 2 >$2.5 B Industrial salt Total CAPEX: $1.56 Billion | OPEX: $192 Milli
Slide 43: QBS Master Plan – Financial Benchmarking
QBS Master Plan – Financial Benchmarking Brine Processing Options – Estimates based on complete industry wide solution achieved through 4 Central Hubs § Comparison between Industry Base Case (Salt Encapsulation, SEF), Selective Salt Recovery (SSR) and the Master Plan (QBS). Integrated (total plant)
Slide 44: Brine Treatment Options – Comparative Analysis
Brine Treatment Options – Comparative Analysis Alternate (SSR) Salt Encapsulation (SEF) Proprietary (QBS) Salt Recovery Processes Approaches Processing Route Range of historical “selective salt Involves crystallising brine into mixed Highly innovative proprietary flowsheet recovery (SSR)” approaches
Slide 45: QBS Business Model – Monetisation Options
QBS Business Model – Monetisation Options Overview § As the owner of the proprietary process technology package with potential to create significant value (>$15 billion) for the industry, Parkway (through QBS) is well placed to capture value through a range of business models, to ensure reasonable v
Slide 46: QBS Business Model – Scenario Analysis
QBS Business Model – Scenario Analysis CSG Project Operator – Base Case Scenario (SEF) Alternative Scenario – Master Plan (QBS Hub) § Assuming a CSG Operator builds a waste processing hub § A Master Plan option of the same capacity as the Base Case (brine concentrator, salt crystalliser & SEF) repre
Slide 47: QBS Master Plan – Potential Funding Options
QBS Master Plan – Potential Funding Options Funding Alignment § Regulatory obligations require CSG Operators to make significant investments ($9 billion in CAPEX for the industry-wide Base Case scenario) in waste brine treatment, however they are not the natural owners and/or operators of these spec
Slide 48: QBS – Creating Value Through Technology
QBS – Creating Value Through Technology Operational & ESG Requirements § CSG Operators are required to address the growing inventory of Need to address the waste issue. concentrated waste brines, to avoid operational challenges. § Widespread community concerns and pushback present risks. Regulatory
Slide 49: QBS – Summary of Advantages of Master Plan
QBS – Summary of Advantages of Master Plan The Problem Value Creation § Enormous volumes of waste brine produced The Master Plan approach proposed by QBS has the § Waste brine contains 6 million tonnes of salts potential to create significant value compared to the Base Case scenario contemplated by
Slide 50: Appendices
Appendices Overview Presentation Outline § Parkway – About Us § Section 1: Introduction to QLD CSG-LNG Sector § Parkway – An Experienced Team § Section 2: The Waste Brine & Salt Challenge § Parkway – Group Structure § Section 3: The QBS Technology-Based Solution § Parkway – Key Markets § Section 4:
Slide 51: Parkway – About Us
Parkway – About Us About Us § We are an innovative industrial water treatment technology company. What Problem are we Solving? § We develop solutions for concentrated and complex process & wastewater streams from the energy and mining sector, to achieve improved outcomes. § These markets represent m
Slide 52: Parkway – An Experienced Team
Parkway – An Experienced Team Board of Directors Commercial & Technical § Highly experienced board with significant § Extensive inhouse commercial & technical domain expertise in industrial, energy, expertise underpins: mining, waste and technology sectors. § Process technology development Stephen v
Slide 53: Parkway – Group Structure
Parkway – Group Structure Overview § Parkway Corporate Limited, the group parent company, has been listed on the Australian Parkway Corporate Limited Securities Exchange since May 2011. ABN: 62 147 346 334 Group Parent Company § Parkway is an industrial water treatment, Listed on the Australian Secu
Slide 54: Parkway – Key Markets
Parkway – Key Markets Key Markets Mining & Energy Industrial Wastewater Municipal & Desalination § Wastewater treatment opportunities § < 10% of wastewater currently recycled § Large and growing global markets § Limited access to freshwater is § Access to freshwater is becoming § Wastewater storage
Slide 55: Parkway – Next-Generation Solutions
Parkway – Next-Generation Solutions The Problem we are Solving Established Strategic Partnerships § We are focused on industrial, energy & mining sectors, where; § VU is leading industrial wastewater research organisation. § Less than 10% of industrial wastewater globally, is recycled; § Worley, is
Slide 56: Parkway – Multilayered IP Protection Strategy
Parkway – Multilayered IP Protection Strategy Overview Multilayered IP Protection Types of IP Protection § Parkway has developed a broad intellectual property (IP) strategy to protect valuable IP portfolio. Core Parkway Process Technologies § The IP portfolio consists of i) Trade Secrets, ii) Know-h
Slide 57: Additional Information
Additional Information Parkway Related Contact Details Corporate Details Enquiries – Master Plan Related § Corporate Profile Group § solutions@pwnps.com § Group Structure § Board & Management Enquiries – Investor Relations Related § Investor Centre § ir@pwnps.com § ASX Reports § Capital Structure §
Slide 58: Master Plan Concept
MASTER PLAN CONCEPT OPPORTUNITY | TECHNOLOGY | PARTNERS | SUSTAINABILITY | SOLUTION Parkway Corporate Limited (ASX:PWN) | Queensland Brine Solutions (QBS) | MASTER PLAN – Concept | 22 June 2023 www. pwnps.com | 54