Global Clean Energy, Inc. · OTC:GCEI
Global Clean Energy — Investor Presentation (October 2021)
38 slides from Global Clean Energy's investor presentation, Oct 5, 2021
Slide 1: Corporate Presentation Fall 2021
Corporate Presentation Fall 2021 Ticker: GCEH Exchange: OTCQX
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements reflecting management's current assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. These forward-looking statements can be identified with words
Slide 3: Table of Contents
1. Company Overview 2. Investment Highlights 3. Business Overview 4. Appendix 2 Table of Contents
Slide 4: Company Overview
Company Overview
Slide 5: Origin Story
4 Origin Story ▪ Addressing the root problem – Feedstock Scarcity & Supply/Cost ▪ Tenured history in feedstock development is the foundation of our business Renewable Fuels Innovator ▪ Differentiated renewable fuels process that aims to solve the industry wide feedstock conundrum ▪ Developer of sust
Slide 6: The Renewable Fuels Feedstock Conundrum
Feedstock Category Practical Feedstock Availability ( million metric tons / year) Examples Sources: World Economic Forum (“WEF”) and McKinsey & Company’s Clean Skies for Tomorrow November 2020 Insight Report. Note: The WEF excludes unsustainable feedstock from its report (i.e. corn) as the indirect
Slide 7: Vertically integrated farm-to-fuel value chain
Genetics, Breeding, & Soils Science Farming & Technology Material Handling Transportation Feedstock Processing Renewable Fuels Refining ExxonMobil Sales Upstream (Sustainable Oils “SusOils”) Midstream Downstream (Bakersfield Renewable Fuels “BKRF”) Livestock Feed Sales Develop proprietary, ultra - l
Slide 8: Investment Highlights
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Slide 9: Investment Highlights
1 Vertically - Integrated, Sustainable, Scalable, “Farm - to - Fuel” Solution 2 Ample Access to Reliable Feedstock for BKRF 3 Long - Term Offtake Agreement with ExxonMobil Provides Margin Certainty 4 Ultra - Low Carbon Intensity (“CI”) Score Drives Higher RD Value 5 Proprietary Feedstock with Leadin
Slide 10: Vertical integration advantages relative to peers
Vertical integration enables us to further our goal of profitably producing “below zero carbon” renewable fuels while also creating a positive impact on food security by easing the demand on food crops for fuel production Non - Vertically Integrated Renewable Fuel Producers Traditional Ag / Renewabl
Slide 11: Ample Access to Reliable Feedstock for BKRF
Feedstock Costs ($/gal) Tallow UCO SBO DCO Camelina Oil Relative Feedstock Prices (1) Camelina Conventional x Secure feedstock source with scalable growth x Stable, contract - based pricing x Lower relative CI Score x Nonfood - based crop with low relative water usage x Ability to grow on fallow or
Slide 12: Large-Scale, Blue-Chip Customer
Large - Scale , Blue - Chip Customer ▪ ExxonMobil has the right to purchase all renewable diesel produced at the Bakersfield Biorefinery under two contracts ; a Product Offtake Agreement (“POA ”) and a Term Purchase Agreement (“TPA”) Long - Term Contracts ▪ Both agreements have a five - year term wi
Slide 13: Ultra-Low Carbon Intensity Score Drives Higher RD Value
7.07 23.57 25.31 32.81 33.71 61.29 100.45 $2.09 $1.68 $1.64 $1.45 $1.43 $0.74 $- $0.50 $1.00 $1.50 $2.00 0 20 40 60 80 100 120 Camelina (with meal credit) Camelina (without meal credit) UCO DCO Tallow SBO Diesel Feedstock Type Not all renewable fuels are equal (Lower CI = higher LCFS credits) ▪ Came
Slide 14: Proprietary Feedstock & Leading Value Proposition
Camelina with Meal Credit (7.07 CI) Camelina without Meal Credit (23.57 CI) UCO (25.31 CI) Tallow (33.71 CI) DCO (32.81 CI) Soy (61.29 CI) $0.00 $1.00 $2.00 $3.00 $4.00 Gross Margin/Gal Proprietary Feedstock & Leading Value Proposition Camelina has the potential to displace other feedstocks due to i
Slide 15: Strategically Located with Early Entrant Advantage
Peer B 45MMGPY Peer C 45MMGPY Peer A 250MMGPY GCEH is years ahead of its peers (timeline of capacity additions ) in terms of first production 2022 2023 2024 2025 230MMGPY (1) Strategically Located with Early Entrant Advantage Bakersfield is positioned in the advantageous California market with a tim
Slide 16: Favorable Industry Trends & Regulation
Renewable diesel demand growth is being driven by growing federal and state level renewable fuels mandates ▪ RD benefits from the Renewable Fuel Standard ( “RFS”, LCFS, Blender’s Tax Credit (“BTC”) and Renewable Energy Directive (“RED II”) ▪ Lack of a blend wall gives RD a substantial advantage ▪ St
Slide 17: Business Overview
Business Overview
Slide 18: Strategy and upstream/downstream operations
Reduce Feedstock Costs through Proprietary Technology Further Expand Margin through Lower CI Scores to Maximize Revenue Enhance Cash Flow Visibility through Long - term Contracts Leverage Vertical Integration Approach and Strategic Relationships to Scale the Business 1 2 3 4 ▪ Our upstream operation
Slide 19: Camelina Cultivation Strategy
We have identified nearly 50 million target acres for potential Camelina cultivation across eight states We currently have substantial acreage under commercial cultivation across six states Average Acreage Owned per Operator = >6,000 CA WA MT ID OR WY CO KS OK State # of Farming Operations Target Ac
Slide 20: Key Benefits to Farmers and SusOils Attributes
Key Benefits to Farmers Key SusOils Attributes Minimal capital expenditure required to run / grow the business due to asset light nature of the strategy Ease of scalability through the utilization of existing land already being farmed Minimal incremental infrastructure required to support long - ter
Slide 21: Midstream Operations
States with current commercial cultivation States with planned commercial cultivation Location of the Biorefinery BNSF Mainlines Midstream Operations Our Biorefinery is strategically located on the BNSF Railway mainline , providing enhanced interconnectivity and ease of access to regions where we ar
Slide 22: Bakersfield Biorefinery Overview
Bakersfield Biorefinery Overview Location Bakersfield, California Capacity 230 MMGPY (15,000 BPD) nameplate throughput capacity (1) Expected Commercial Operations Date Q1 2022 Total CapEx ( Amount Spent ) $420MM (2) ($279MM (3) ) Infrastructure Grid power, natural gas, steam, electricity, fiber / co
Slide 23: Downstream Operations Cont'd
Downstream Operations Cont’d Our downstream operations benefit from a variety of key strategic attributes 22 Key Bakersfield Biorefinery Attributes Located within a large demand center (San Joaquin Valley) within close proximity to Los Angeles and San Francisco Ability to refine a variety of feedsto
Slide 24: Expansion projects: hydrogen, crush plant, carbon capture
• Solution to hydrogen capacity constraint on RD production, production from 150 to 210 MMGPY • More efficient Steam Methane Reforming, reducing the CI of output and lower natural gas costs • Surplus H2 to market or to further expansion of the Biorefinery Hydrogen Plant Expansion Midstream Agricultu
Slide 25: GCEH – CapEx Overview
GCEH – CapEx Overview 24 Projected CapEx Proposed Timing CI Score Improvement Margin Improvement ~$430MM (1) ($279MM spent (2) ) Q1 2022 $ 130 MM (3) 2023 $ 160MM (3) 2024 $100MM (3) 2025 Source: Company forecast model. (1) Majority of CapEx to be spent on Bakersfield Refinery. Includes opex, workin
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Slide 27: Board of Directors Overview
Independent Audit Committee Compensation Committee Governance Committee Martin Wenzel Director David Walker Independent Director SLAE Inc. Phyllis Currie Independent Director Susan Anhalt Independent Director Richard Palmer CEO, President & Founder Prior Experience Education Board of Directors Overv
Slide 28: Senior Management Overview
Richard Palmer Chief Executive Officer, President & Founder 35+ years of experience in renewables & commodity management Senior Management Overview 27 Mike Karst Vice President, SusOils 35+ years of experience in agronomy sales, marketing & management Tom Rizzo Senior Vice President, BKRF Previously
Slide 29: GCEH Summary Revenue Model
28 GCEH Summary Revenue Model Note: Not an exhaustive business model. Created for illustrative purposes only. Does not include Crush plant associated revenues / costs in SusOils. (1) While all RINs/LCFS are transferred to ExxonMobil, GCEH is compensated for TPA - related RINs/LCFS credits. (2 ) Vari
Slide 30: Camelina crop characteristics and history
Ideal Rotation Crop Low Water Consumption Millions of Acres ▪ Grown on empty (fallow) land in wheat field rotation cycle ▪ Gives farmers additional revenue ▪ Existing equipment can be utilized ▪ Does not displace food or create indirect land use change ▪ Grows with less than 10” annual rainfall ▪ Gr
Slide 31: Camelina yields and commercial acreage development
▪ Camelina yields ~2,000 pounds of grain production per acre ▪ Camelina grain yields a much higher percentage of oil relative to soybeans ( 38% vs. 19%) ▪ Each acre of Camelina grain results in 800 pounds of Camelina oil (or 106 gallons of Camelina oil) ▪ Each acre of Camelina grain results in an RD
Slide 32: What is Renewable Diesel?
▪ RD is chemically identical to petroleum - based diesel ▪ RD can utilize the same infrastructure and function as a drop - in, 100% replacement for petroleum - based diesel ▪ Lower levels of contaminants enable RD to burn cleaner than petroleum - based diesel, reducing emissions by up to ~33% ▪ RD a
Slide 33: Renewable Fuel Standard Program Summary
Program Summary 32 ▪ Enacted by Congress in 2005, the RFS program establishes minimum renewable volumes to be blended into traditional petroleum - based fuel products ▪ To comply with the program, a refiner or importer of gasoline or diesel fuel must either blend renewable fuel into transportation f
Slide 34: Low Carbon Fuel Standard Program Summary
▪ LCFS and similar programs target a reduction in carbon intensity (“CI”) as measured by the direct and indirect greenhouse gas (“GHG”) emissions produced from producing transportation fuels ▪ Multiple U.S. and foreign jurisdictions have implemented versions of LCFS programs to incentivize lower CI
Slide 35: Blenders Tax Credit Program Summary
Program Summary ▪ The Blenders Tax Credit (also called the “Biodiesel Tax Credit” or “BTC” ) currently provides qualified producers a tax credit of $1.00 per gallon when the required amount of biodiesel or renewable diesel is blended with petroleum diesel for use in trade or business ▪ The BTC acts
Slide 36: Glossary
Glossary 35 Term Definition AB 32 California’s Global Warming Solutions Act of 2006 AB 398 An extended version of AB 32 to include a 40% GHG reduction target in 2030 and an 80% reduction target in 2050 ASTM American Society for Testing and Materials International, an organization that develops and d
Slide 37: Glossary
Glossary 36 Term Definition EPA Environmental Protection Agency EPC Engineering, Procurement & Construction ESG Environmental, Social, and Governance practices ExxonMobil ExxonMobil Oil Corporation FOG Fats / Oils / Grease GHG Greenhouse Gas emissions LCFS Low Carbon Fuel Standard, a market - based
Slide 38: Thank You
Thank You contact@gceholdings.com
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