Environmental Clean Technologies Limited · ASX:ECT
Environmental Clean Technologies — Shareholder Meeting (November 2018)
27 slides from Environmental Clean Technologies's shareholder meeting presentation, Nov 30, 2018
Slide 1: AGM Presentation
AGM Presentation Friday 30 November 2018 “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: Overview
Overview Section 1 Section 2 Domestic Activity India Activity • Organisational Structure • Project Engineering • Revenue Model Update • Bacchus Marsh • Commercial Terms • Latrobe Valley • Research Collaboration • Capital Management Agreement • Pathway ahead
Slide 4: Organisational Structure
Organisational Structure Environmental Clean Technologies Limited ECT Finance Board of Directors ECT India • Glenn Fozard (Chair) • Barry Richards (NED) • David Smith (NED) • Martin Hill (Co Sec) Board of Directors ECT Executive Committee Board of Directors • Jim Blackburn (Chair) • Jim Blackburn (E
Slide 5: Revenue Model: Summary of Revenue Mechanisms
Revenue Model Summary of Revenue Mechanisms • Direct sales of product: • e.g. Coldry fuel sales into the domestic multi-feedstock boiler market) • ECT’s share of licensing fees and/or royalties from the India SPV • 49% ECT, 25.5% NLCIL, 25.5% NMDC • Project development fees • Project engineering • P
Slide 6: Coldry Capacity Targets
Revenue Model Coldry Capacity Targets Stage of Development Capacity Status Theoretical models NA Achieved Lab Scale <10kg, batch Achieved Test Scale ~5 tonne, batch process Achieved 15,000 tpa, continuous, simulated waste Pilot Scale Pending heat 170,000 tpa, continuous, waste heat Commercial demons
Slide 7: Matmor Capacity Targets
Revenue Model Matmor Capacity Targets Stage of Development Capacity Status Theoretical models NA Achieved Lab Scale <10kg, batch Achieved Test Scale ~40kg/h, semi-continuous Achieved Pilot Scale ~1 tph, continuous (India Project) Pending Commercial demonstration India Plant 1 (500 ktpa, billet steel
Slide 8: Bacchus Marsh
Bacchus Marsh High Volume Test Facility – Site development and Upgrades • Stage 1 and Stage 2 expansion completed FY2018 • Site footprint increased by 35% to provide for program expansion (product handling, storage and equipment testing) • Enhanced R&D capability • Significant investment in testing
Slide 9: Bacchus Marsh: Stage & Expansion
Bacchus Marsh High Volume Test Facility Stage 3 & 4 Expansion Stage 3: Dec 2018 – April 2019 • Target Capacity Up to 25,000 tpa • Budget ~$1.15-1.25m • Status: Procurement & Construction Stage 4: April 2019 – July 2019 • Target Capacity Up to 35,000 tpa • Budget ~$1.0m • Status: Planning
Slide 10: Coldry – Commercialisation Activities
Coldry – Commercialisation Activities Strategic partnerships: • Calleja Group – site & transport (Maddingley) • EnergyAustralia – coal supply and Project site partner (Yallourn) • HiTech (QLD) and John Thompson Boilers – boiler package equipment supplier and installation • Jebsens – 3rd party logist
Slide 11: Coldry – Domestic Market Strategy
Coldry – Domestic Market Strategy Markets Small to medium volume: • Consumers who need affordable utility grade heat to run their business. • Timber, dairy and agriculture. • Many switched to gas when the Morwell briquette plant closed, but with the increasing gas price, they need an alternative. •
Slide 12: Latrobe Valley Project
Latrobe Valley Project Coldry large-scale demonstration plant • Capacity - up to 600,000 tonnes per annum • Feed material for high value conversion process • Pre-Feasibility program completed: • Scoping study and selection phase • Economic Modelling • Market Study • Feasibility program commenced: •
Slide 13: Latrobe Valley Project Pathway
Latrobe Valley Project Project Pathway Prefeasibility Feasibility Study Implementation Operation Closure & Scoping Study Study & Funding and start up Decommissioning (20-30 years) Determine what Determine what Determine what Deliver the Extract the value Return to the it could be it should be it wil
Slide 14: Capital Management
Capital Management R&D Tax incentive • Positive ruling received for the Coldry project in India • Matmor ‘Advance Finding and Overseas Ruling’ application submitted and under review, results expected Q3 FY18. • Allows financing of 43.5% of the eligible R&D expenditure, estimated to be approx. A$10 m
Slide 15: Section 2: India Activity Overview
Section 2: India Activity Overview • Project Engineering Update • Commercial terms • Research Collaboration Agreement • Project Pathway
Slide 16: Project Location – Tamil Nadu – Neyveli
Project Location – Tamil Nadu – Neyveli
Slide 17: India Activity: Basic Engineering Report
India Activity: Basic Engineering Report • Process Flow Diagram • Site Layout • Block diagram • Building identification • Materials balance • Process layout • Reaction modelling / Energy balance • 3D arrangement • Equipment Selection • Schedule • Options analysis & selection • Program overview • Spe
Slide 18: Fly-through of 3D layout – Integrated Pilot Plant
Fly-through of 3D layout – Integrated Pilot Plant Raw material stockpiles Primary Processing Building Conditioning Belt Crushing & handling Shift hoppers, milling & extruding Conditioning fan boxes
Slide 19: Fly-through of 3D layout – Integrated Pilot Plant
Fly-through of 3D layout – Integrated Pilot Plant Control room & MCC Packed Bed Dryer Moist pellet distribution conveyors Aux heating systems PBD Fan boxes & heat exchangers PBD exhaust stacks Incoming HV
Slide 20: Fly-through of 3D layout – Integrated Pilot Plant
Fly-through of 3D layout – Integrated Pilot Plant PBD discharge conveyors Lab & lunchroom Matmor retort Pellet conveyors to retort & stockpile Melt shop (Induction furnace)
Slide 21: Fly-through of 3D layout – Integrated Pilot Plant
Fly-through of 3D layout – Integrated Pilot Plant Retort Exhaust stack Nitrogen system Offgas combustor MCC Offgas heat exchanger
Slide 22: Benefits vs Other Ironmaking Processes
Benefits vs Other Ironmaking Processes Decoupling from traditional raw materials strengthens a business’ resistance to inherent price volatility TEF Study basis: TEF model updated using 2015/6 average RM costs & Sales prices 2018 Sep RM costs & Sales prices Traditional Indian Alt ECT Traditional Ind
Slide 23: India Activity: Commercial terms
India Activity: Commercial terms Commercial terms: • Research and development collaboration (R&D collaboration) -unincorporated association governed by the terms of the RCA • The participating interests in the R&D collaboration (and subsequent SPV) • NLCIL: 25.5% • NMDC: 25.5% • ECT: 49% • A special
Slide 24: India Activity: Commercial terms
India Activity: Commercial terms Commercial terms: • NLCIL: • Fund 50% capital expenditure (~INR75 Crore or ~AUD15M) • Fund 25.5% operating expenditure (~INR6.9 Crore or ~AUD1.4M) • Fund 25.5% of any additional budget (CAPEX & OPEX) • NMDC • Fund 50% capital expenditure (~INR75 Crore or ~AUD15M) • F
Slide 25: India Activity: Research Collaboration Agreement
India Activity: Research Collaboration Agreement Research Collaboration Agreement: • Commercial Terms • Master License • Services Agreements • NLCIL • NMDC • ECT • Legal / Compliance terms and conditions
Slide 26: India Activity: Project Pathway
India Activity: Project Pathway • Tripartite Agreement Completed • Techno-Economic Feasibility study Completed • External Legal / Financial Due Diligence (1) Completed • Memorandum of Understanding Completed • Basic Engineering Report (Dastur) Completed • External Legal / Financial Due Diligence (1)
Slide 27: Thank you.
ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED Thank you.
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