Synthesis Energy Systems Inc · OTC:SYNE
Synthesis Energy Systems — Gasification Technologies Conference 2011
36 slides from Synthesis Energy Systems's conference presentation, Oct 11, 2011
Slide 1: Making a Global Impact
Synthesis Energy Systems www.synthesisenergy.com Making a Global Impact Gasification Technologies Conference San Francisco, CA October 10, 2011 UNLOCKING VALUE THROUGH CLEAN ENERGY TECHNOLOGY
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-look
Slide 3: About Us
3 ABOUT US
Slide 4: Company Overview
Company Overview Global gasification leader - competitively differentiated, technologically advantaged Creating high value, high margin clean energy products in the most rapidly growing markets in the world U-GAS(r) technology(1) - exclusive worldwide license, highly scalable, proprietary, and readi
Slide 5: Building Momentum
Building Momentum Yima/ZJX Investment (China)$84 million pending investment into SESCollaboration leverages position in ChinaFacilitates multiple development opportunitiesZuari Investment (India)Initial $5 million investment into CompanyFirst step in establishing key position in high growth, high de
Slide 6: World Coal Reserves
World Coal Reserves Billion Short Tons Sources: US EIA International Energy Outlook 2011(1), BP Statistical Review of World Energy 2011(2) USA(1)Total: 260.6Bituminous & Anthracite: 119.6Sub-bituminous: 108.2Lignite: 33.2 Turkey(2)Total: 2.6Bit & Anthracite: 0.6Sub-bit & Lignite: 2.0 India(1)Total:
Slide 7: Our Technology Platform - U-GAS
U-GAS(r)(1) is a unique, proven technological gasification process that addresses the challenges of creating energy from low cost, low quality coal and biomass feedstocks Our Technology Platform - U-GAS(r) Syngas Originated in U.S. at Gas Technology Institute ("GTI") and perfected over a thirty-five
Slide 8: Technology
TECHNOLOGY EE ene
Slide 9: Paths To Value Creation
Paths To Value Creation 9 CO2CaptureCapable Low Value Feedstock High Value End Products Gasoline blendingSyngas to gasolineDiesel - DME & FTL LPG - DME blending SNG Fuel Gas IGCCFuel cells MethanolHydrogenOlefinsAcetic AcidGlycol Low quality coals Biomass Downstream Processes By-Products Synthesis G
Slide 10: Technology Advantages
Technology Advantages Industry leading capability Commercially Proven Technology Developed by GTI over the past 35 years 11 pilot, demo and commercial units since 1975 SES proprietary "know-how" & technology capability Growing SES IP with twelve new patents pending Fuel Flexible Industry leading fue
Slide 11: U-GAS: Efficient, Clean Operation, Fluidized Bed vs Fixed/Moving Bed
U-GAS(r): Efficient, Clean OperationFluidized Bed vs Fixed/Moving Bed SES has Unique Advantage over Fixed/Moving BedFixed/moving bed has lower carbon conversion efficiencies due to the lower operating temperature Fixed/moving bed has non-uniform temperature profile, which promotes the generation of
Slide 12: U-GAS: Highly Fuel Flexible, Fluidized Bed versus Entrained Flow
U-GAS(r): Highly Fuel FlexibleFluidized Bed versus Entrained Flow Entrained Flow Slurry Feed Entrained Flow Dry Feed SES U-GAS(r) 40+ ~10 -20 Moisture % ~ 20 - 25 50+ 12 High operating temperatureSlagging conditionsHigh capital intensityNo Tars & Oils formedCan process fine coalCannot process wet co
Slide 13: Defining Fuel Flexibility
Defining Fuel Flexibility Western Kentucky #9, washed & ROMWestern Kentucky #9 and 11, CampAustralian, Bayswater #2, Sydney BasinPittsburgh #8, Champion and IrelandIllinois #6, Peabody #10 & Crown IIIPolish, SilesiaFrench, Merlebach - ROMUtah - ROMColumbianIndian, N. Karanpura, washed & ROMShandong
Slide 14: Operations
14 OPERATIONS
Slide 15: U-GAS Technology Development
U-GAS(r) Technology Development 15
Slide 16: Zao Zhuang (ZZ) Commercial Operations
Zao Zhuang ("ZZ") - Shandong Province JV with Shandong Hai Hua Coal & Chemical Co. Ltd (96% SES / 4% HH)Proven U-GAS(r) performance with successful commercial operation; over 3.5 yrsDesigned for 22,000 Nm3/hr of clean syngas on coal washing waste (40 wt% ash)High syngas availability...over 97% avera
Slide 17: ZZ Test Campaigns
Proximate Analysis Inner Mongolia Lignite ('09) Fines Reinjection ('10) Australian Sub-bit ('10) Moisture Content, wt % (ad) 12.05 1.84 4.84 Ash Content, wt % (ad) 20.40 27.39 37.76 Volatile Matter, wt % (ad) 31.18 29.64 32.25 Fixed Carbon, wt % (ad) 36.37 41.13 25.15 Moisture Content, wt% AR 26.50
Slide 18: Major Process Improvements
Major Process Improvements SES' Fines Management System ("FMS") Carbon conversion and cold gas efficiency are calculated values. Slagging wet and dry feed gasification calculations based on DOE/NETL-2007/1281 IGGC performance study. Fixed bed gasification calculations based on DOE/NETL 401 / 040607
Slide 19: ZZ Plant Performance 2011
ZZ Plant Performance 2011 19 19 (CHART) (CHART) (CHART)
Slide 20: Yima - A Multi-Phased Project
Yima - A Multi-Phased Project Yima - A Multi-Phased Project The Yima Coal Industry Group is one of China's largest coal companies with total assets of RMB 15.7 billon (USD 2.3 billion)Chose U-GAS(r) following test campaign on Yima's high ash sub- bituminous coal at SES' Zao Zhuang facility 20
Slide 21: Yima Coal Gasification Project
Yima Plant - Henan Province Phase 1 of $4B Mazhuang Coal Chemical and Energy Industrial ParkConverts 2400 mtpd of 38-45% ash coal to 300,000 mtpa methanolSyngas generation in mid-2012 Yima Coal Gasification Project 21
Slide 22: Strategy
id eB GER NM aie STRATEGY
Slide 23: Implementing Strategy Through Regional Growth Platforms
Implementing Strategy Through Regional Growth Platforms Strategic partnering key to SES global growthPartners typically well capitalized, bring financial muscle to table Have ability to facilitate and capture new businessFacilitate completion of local approvals for projectsExperience with regional c
Slide 24: Multiple Paths to Growth & Profitability
Multiple Paths to Growth & Profitability SES Advanced Gasification Technology Technology & Equipment Supply Selective Project Investments Integrated Coal Resource Projects 24 Three Pronged Global Growth StrategyTechnology, Equipment Supply & ServicesRapid U-GAS(r) CommercializationGrow installed bas
Slide 25: Technology, Equipment & Services Licensing
LicensingPotential to be a sustained revenue generatorTechnology royalty is typically a one time fee collected across project design, construction & startupTypical project cycle...24 to 48 monthsTypical transaction range $3MM to $30MM+ (1)Specialized Equipment & Technical ServicesPre-Order Engineeri
Slide 26: Project Investments
Project Investments Capital Investment - JVs with equity investment & carried interestSyngas plants, SNG, integrated methanol/glycol facilities, fertilizer businessesBuild Own Operate ("BOO") modelBuild Own Transfer ("BOT") modelModular units; engineering, equipment and construction partnershipsOper
Slide 27: Representative Economics China SNG Case
Representative Economics China SNG Case Base Case AssumptionsRepresentative 4 billion Nm3/yr SNG project in ChinaLow rank coal feedstockNatural gas prices are estimated price at the city gate; Total invested capital: $2.3bn; coal price net of VAT, Rmb85per met ton ($16/m ton) SES provides a clean, e
Slide 28: Integrating Coal Resources
Integrating Coal Resources Vertically integrates and/or links under utilized, low quality coal resources to SES projects globallySES' U-GAS(r) technology facilitates monetization of low commercial value "stranded" coals that are otherwise difficult or impossible to commercializeSecures long-term low
Slide 29: Develop
Develop markets for coal that would otherwise stay undeveloped Offer stable long term price not linked to global coal prices Ship coal to where energy products have highest value 2
Slide 30: SRS Business Opportunities
SRS Business Opportunities Coal export model Coal resource investment, including mining and rail to export port Coal consuming facilities, including SES U-GAS(r) facilities, in high value energy marketsAustralia, Indonesia, & Southern Africa are prime coal supply targetsIndia, China, Japan, Korea, &
Slide 31: Coal Export Model
Coal Export Model SRS is working with coal resource owners, Boards & executive management to quantify alternative options for commercialising their resources 31 Market constrained low grade coalHigh ash southern Africa coalIndonesian sub-bituminousHigh moisture content coalHigh ash Surat Basin Queen
Slide 32: Low Rank Coal In Indonesia
Low Rank Coal In Indonesia 32 Indonesian OpportunitiesExtensive undeveloped portions of Kaltim Prima leaseUnlikely to be developedMay lose rights if not accessedSub 4200kcal/kg high moisture coal (>35% MC)To be priced outside of quality adjusted formulaData based on information provided by lease own
Slide 33: Low Rank Coal In Mozambique
Low Rank Coal In Mozambique SRS is working in MozambiqueExtensive mining area - 38,700 Ha1.8 billion tonne resourceThree potential routes to portAlso investigating in-country gasificationData based on information provided by lease owner 33
Slide 34: Low Rank Coal in Australia
Low Rank Coal in Australia 34 SRS is working with a number of Surat Basin explorersExtensive land-locked high ash basinSurat Basin rail and new coal terminal at Gladstone proposedUnderpinned by Xstrata mine (~30M mtpa)SES technology avoids need for washing cost and water usage
Slide 35: Building Value
Building Value Working to become uniquely and competitively positioned for gasification of low cost feedstocks on a global basisCommercializing gasification technology in high demand, high growth markets: our only business Building significant momentum - achieving rapid early growth through regional
Slide 36: Making a Global Impact
36 MAKING A GLOBAL IMPACT
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