Thorney Technologies Limited · ASX:TEK
Thorney Technologies — Australian Renewable Fuels — Shareholder Meeting (November 2006)
23 slides from Thorney Technologies's shareholder meeting presentation, Nov 30, 2006
Slide 1: Australian Renewable Fuels Limited 2006 AGM
Australian Renewable Fuels Limited 2006 AGM
Slide 2: Highlights
Highlights • Two plants in Australia commissioned and operational • Technology proven on tallow • Significant increase in know how / IP in ARF • Expansion in Australia slowed, but North American expansion opportunity grows in significance • Negotiate ownership of Energea patents in Australian region
Slide 3: Adelaide Facility Overview
Adelaide Facility Overview • Adelaide (Largs Bay), Southern Australia facility commissioned in May 2006 • 45Ml pa capacity • AU$7.15M grant from Commonwealth government – expect final 2 payments ($5.36M) this financial year • Located within Adelaide fuel supply infrastructure – harbor, road and rail
Slide 4: Picton Facility Overview
Picton Facility Overview • Picton, Western Australia facility commissioned in July 2006 • 45Ml pa capacity • 4km from Bunbury inner harbor • AU$1.18M in grants from the WA state government • Feedstock agreement with Gardner Smith • Primarily tallow feedstock • Production to date has been 1.5ml * 4
Slide 5: Australian Region Growth
Australian Region Growth • Growth delayed due to tax changes and resolution of start-up issues • Ownership of Energea patent in Australian region • ARF intends to develop and operate up to 5 Australian / New Zealand plants – Up to 220Ml pa capacity – Reliant on future tax position or revised develop
Slide 6: Australian Market
Australian Market • Australian market in its infancy (ML) 350 Australian Biodiesel Capacity 290 300 250 • AU$0.38 per liter producer 200 grant 150 100 40 50 0 0 0 10 0 • Excise tax rebates for off-road 2001 2002 2003 2004 2005 2006 diesel use (KL) Australian Diesel Output 11,500,000 11,118,838 10,95
Slide 7: Market Relativity
Market Relativity ( T a llo w ( A U $ / t ) ) ( D ie s e l T G P ( A U $ / l) ) 2 ,0 0 0 1 .2 1 ,8 0 0 1 ,6 0 0 1 ,4 0 0 0 .8 1 ,2 0 0 1 ,0 0 0 800 0 .4 600 400 200 0 0 .0 1994 1998 2001 2005 T a llo w D ie s e l A u s t r a lia 7
Slide 8: Australian Diesel Supply
Australian Diesel Supply Australian Oil Statistics (Source: ABARE) 30 25 20 Crude Gl 15 Diesel Used Diesel Imported 10 5 0 2003 2004 2005 Financial Year 8
Slide 9: Comparative Testing
Comparative Testing AUSTRALIAN RENEWABLE FUELS LIMITED
Slide 10: ARF Biodiesel Process
ARF Biodiesel Process The Energea CTER Inputs Outputs technology is a continuous conversion process capable Fat (1 ton) of processing a wide range Biodiesel (1 ton) of fats as feedstock ‘Biodiesel’ is defined as the Any biogenic fat or oil can be used, alternatives include methyl ester of fatty acid
Slide 11: Advantages of ENERGEA
Advantages of ENERGEA • Proven ability to process multiple feedstocks including used cooking oil and animal fats/tallow, turning problematic waste materials into valuable transport fuel • Does not produce harmful chemical emissions or material waste products • The reaction kinetics are accelerated c
Slide 12: Sources of Feedstock
Sources of Feedstock • Tallow is an attractive local Tallow and Canola Production by State feedstock due to good availability, low price and natural fit with biodiesel production 228 490 • 2.5M tons of oilseed crops 38 226 produced in 04/05 44 395 158 – With a 40% oil yield, total possible 420 Amoun
Slide 13: Emergent
Emergent • Industrial Oilseeds – Jatropha – Pongamia – Coconut – Cranbie – Radish • Algae 13
Slide 14: Quality
Quality • ASG Analytik Pty Ltd • Each site has major quality laboratory • Adelaide has full product certification laboratory • All product sold is certified to the Australian Standard • Product stewardship policy – No credit notes – No product returns – No quality incidents – Approved as a supplier
Slide 15: Fuel Tax Bill Summary
Fuel Tax Bill Summary Pre 1 July 2006 Post 1 July 2006 • Biodiesel subject to excise upon • Biodiesel excisable upon production production (38.14¢/L) (38.14¢/L) • Producer grant on quality certification • Producer grant on quality certification (38.14¢/L) (38.14¢/L) • B100 and blends of diesel and •
Slide 16: The Way Forward
The Way Forward • New Markets • Focused operational control • Resources • Revised development model • Offshore opportunities – NAFTA expansion on track – European expansion on hold – CCM opportunity discontinued during the due diligence process 16
Slide 17: ARF Inc – Overview
ARF Inc – Overview • Ross Garrity appointed as CEO August 2006 • Replicate our Australian business model in North America through subsidiary American Renewable Fuels Inc (ARW 60%). – Incorporated August 2006 • ARF Inc will hold the rights to Energea technology for the NAFTA region and will sell tech
Slide 18: Strategy
Strategy • Initial large scale plant (~250 ktpa or ~284mlpa) – Potential to build two plants based on outcome of feasibility study • Domestic sales and feedstock arrangements in place for 100% of plant capacity by commencement of production • Utilize a combination of low cost feedstocks including UC
Slide 19: US Biodiesel Market
US Biodiesel Market Demand for biodiesel in the US is forecast to increase dramatically over the next 10 years driven by government support. • Estimated biodiesel demand of 300 million litres in 2006 rising up to 1.8 billion litres in 2010 and 2.4 billion litres in 20201 • Significant government sup
Slide 20: US Biodiesel Market
US Biodiesel Market • Biodiesel growing in availability with more than 1,400 petroleum distributors making biodiesel available to consumers, and more than 450 retail pumps – Already used by major truck fleets including all branches of the US military, Yellowstone National Park, NASA, several state d
Slide 21: US Market Growth
US Market Growth Annual biodiesel demand reached 280 million litres in 2005, three times the amount in 2004. 3,000 US Biodiesel Demand Million Litres 2,400 Biodiesel Demand (Million Litres) 2,500 2,000 1,800 1,500 1,000 500 284 300 19 57 76 95 2 8 0 1999a 2000a 2001a 2002a 2003a 2004a 2005a 2006f 20
Slide 22: Sources of Feedstock
Sources of Feedstock • Like Australia, tallow/UCO is an attractive local feedstock due to good availability, declining traditional markets, low price and natural fit with biodiesel production • Annual (2004/5) production was 4Mt with export of 1Mt • 9.3Mt of Soya bean oil in 04/05 – 75% of total oil
Slide 23: Contact Details
Contact Details Australian Renewable Fuels 08 9363 3500 Limited info@arfuels.com.au www.arfuels.com.au Darryl Butcher, MD/CEO 08 9363 3500 dbutcher@arfuels.com.au Max Ger, CFO mger@arfuels.com.au 23
Australian Renewable Fuels — Shareholder Meeting (November 2006) on 6ix