Judith Tanselle White Energy Company Limited

Transcription

1 Judith Tanselle White Energy Company Limited

2 White Energy Company Limited February

3 The White Energy Investment Opportunity WEC is the exclusive license holder of its patented coal upgrading technology Increases heat energy output, creating compelling efficiencies Favorable conversion economics facilitate competition with bituminous coals WEC has a significant market opportunity in the United States Coal forecast to be the dominant source of electricity generation through 2030 Increasing emphasis on emissions reductions driving demand for cleaner coal solutions Strategy for growth in the United States Capitalize on the world s largest source of sub-bituminous coal Pursue partnerships with coal companies and electric utilities Promote WEC s upgraded coal as an attractive low sulfur alternative to high priced bituminous coals Track record of success supports our growth potential Commercial scale demonstration plant at Cessnock, NSW now producing upgraded coal Commissioning of first commercial plant in Indonesia during Q to reach full production by Q2-Q Partnering with world-class companies including Kiewit Corporation, Datang International Power, Bayan Resources, Adaro Group, Itochu Corporation, Black River Asset Management LLC Highly regarded team with an average of at least 15 years of combined relevant industry experience 3

4 The White Energy Investment Opportunity White Energy has a unique and commercially viable technology that upgrades low quality coal to a high value product through a low cost production process 4

5 White Energy Technology: A Five Step Process Simple and Mechanical Raw coal ROM STAGE 1 Raw Raw Coal Coal Storage Storage & & Crushing Crushing STAGE 2 Sized raw coal Combustor Combustor Gas Gas Generator Generator For For Drying Drying Hot Gas Drying Drying Process Process STAGE 3 Briquet te fines Dry coal Mix of briquettes and flash STAGE 4 Briquette Briquette Presses Presses Power for briquetting Briquetted product put through small surge bin in preparation for transport and delivery to customer Briquette Briquette Storage & Storage & Reclamation Reclamation STAGE 5 5

6 White Energy Technology: Transforming Low Rank Coals Higher energy content: useable energy content increased by between 30% and 200% creating valuable power generation efficiencies Low upgrading costs: favorable conversion economics allows product to compete with bituminous coals Physically and chemically stable: lower spontaneous combustion risk easily handled, stored and transported Increased transportation efficiencies: process reduces moisture, decreasing load volumes up to 30% lowers railroad transportation cost Reduced pollutants and greenhouse gas emissions: more efficient burning results in lower CO2, SO2, NOx and Hg emissions and reduced ash Reduced levels of dust compared with unprocessed sub-bituminous coal 6

7 White Energy Technology: Increases Energy Efficiency Energy content increases from 8,400 BTU/lb to 11,345 BTU/lb No chemical change to the coal - all other components of the coal stay virtually the same Sample 8,400 BTU/lb PRB coal which starts with 30% moisture PROXIMATE ANALYSIS (as received basis) WEC Upgrade d Coal Total Moisture arb (%) 6.4 Ash (%) 6.1 Volatile Matter (%) 41.4 Fixed Carbon (%) 46.1 ULTIMATE ANALYSIS (dried basis) Carbon (%) 69.7 Hydrogen (%) 5.0 Nitrogen (%) 0.9 Sulfur (%) 0.4 GROSS CALORIFIC VALUE (as received basis) BTU / lb 11,345 7

8 White Energy Technology: WEC s Upgraded Coal Compares Favorably Sub-bituminous coal upgraded by White Energy compares very favorably with higher priced bituminous coal Improved boiler efficiency results in lower emissions and reduced ash waste Parameter Sub-bituminous Coal White Energy Upgraded Coal Australian Bituminous Coal 14% ash Boiler Efficiency (%) Parasitic Load (%) Overall Efficiency (%) Compare 36.1 NOx (mg/nm3) SOx (mg/nm3) Ash Generation (Kg/MWh) Source: BHP Billiton

9 White Energy Technology: Significant Spread Between Buy and Sell Coal Prices Upgrading process captures price spread between sub-bituminous and bituminous coal Sub-bituminous feedstock coal cost per ton: US$11.00 US$14.00 Processing cost per ton: US$8.50 US$10.50 Historical Coal Prices Prompt Quarter Central Appalachian NS Btu/ lb low sulfur Central Appalachian CSX Btu/ lb low sulfur Colorado Btu/lb low sulfur Powder River Basin 8400 Btu/ lb $/ton Source: Ventyx Energy, LLC: Velocity Suite. As of 19 February,

10 Coal Market: Global Drivers Rapidly growing coal demand: Global coal demand is expected to grow significantly through Deliverability of high quality coals is declining: In both North America and Asia, production of high thermal value / low emission coal is declining. Worldwide, 49% of recoverable coal reserves are subbituminous or lignite. Increasing global emphasis on emissions reductions: Across the globe, emissions of CO 2, SO 2, NO x and Hg are coming under increased regulation. Global demand for cleaner, more affordable sources of Energy: Coal is a vital resource for meeting the world s sustainable energy needs. Coal must play a role, but needs cleaner coal technology. White Energy taps the worlds vast source of low rank coal, converting it into a high value, energy efficient fuel 10

11 US Coal Market: Capitalizing on an Abundant Resource The US has the world s largest coal reserves: Coal is the lowest cost and most easily accessed energy source in the world. The US has over 260 billion tons of recoverable reserves. 2 nd largest world coal producer: The US exceeded 1.15 billion short tons produced in Three main producing regions: Appalachia, Interior and Western. 11

12 US Coal Market: World s Largest Sub-Bituminous Region The Power River Basin (PRB) in Wyoming is the fastest growing coal producing region in the world Annual output in PRB is 480 million tons, making it the largest sub-bituminous coal producing region in the world Demand for PRB coal driven by several factors: Very favorable PRB mining conditions resulting in a very low cost of production PRB coal results in low SO 2 and NOx emissions and has a low ash content High price of low sulfur alternatives such as import coals 12

13 Strategy for Growth in the United States 13

14 Strategy for Growth in the United States: Establishing Partnerships WECNA Is Partnering With Companies That Have Proven Track Records The Buckskin Project: Development Agreement signed with Buckskin Mining Company (Kiewit Corp) Feasibility study successfully completed Announced agreement to proceed with the development of a coal upgrading facility at the Buckskin mine in the Powder River Basin Initial development focused on 1 million ton per annum plant Potential to grow to 8 million ton per annum capacity 14

15 Strategy for Growth in the United States: Coal Companies and Electric Utilities White Energy s upgraded coal provides US utilities with an attractive alternative to high priced low sulfur bituminous coals Commence construction of the first coal upgrading plant in the PRB region, USA Establish further opportunities from ongoing discussions with both coal companies and electric utilities Market upgraded coal to power generators in the eastern US currently burning bituminous coals Capital constraints and environmental regulation uncertainty increase demand for White Energy s coal Reduced emissions, ash waste and coal dust benefit US utilities Initial US Target: Powder River Basin 15

16 Strategy for Growth in the United States: US Management Team Judy Tanselle, President Over 18 years of experience in the energy industry including: Executive Director, Coal and Emissions for NRG Energy Managing Director, Coal, Oil and Emissions for PG&E National Energy Group Leader in the early development of US coal trading and development of industry standards Morris Meltzer, Vice President and Chief Financial Officer Over 16 years of experience in the energy industry including: Managing Director, Tax for PG&E National Energy Group Consulted with Independent Power Producers on matters including tax compliance, tax audit management, power plant development A licensed attorney and CPA in the State of Maryland 16

17 Track Record of Success Supports Our Growth Potential 17

18 Track Record of Success Supports Our Growth Potential: Operates on the Global Stage North America Buckskin Indi a China / Mongolia Datang Afri ca Indonesia Bayan Adaro / Itochu South America Projects Underway Discussions Underway Australia / New Zealand 18

19 Track Record of Success Supports Our Growth Potential: Commercial Production Plant In August 2008, WEC announced the completion of construction of its 90,000 tonne per annum commercial scale production plant and successful production of upgraded coal at Cessnock, New South Wales. The design and construction of the Cessnock Plant is representative of the design and construction process required for a one million tonne per annum commercial plant. The Cessnock Plant will be used to test feedstock coals provided by existing and potential partners for meaningful combustion testing and trial burns of the upgraded product. The Cessnock Plant will also be used for further research and development purposes and will be an important training facility. 19

20 Track Record of Success Supports Our Growth Potential: Building a Global Business Buckskin (USA): Development Agreement with Buckskin Mining Company (Kiewit Corp) Successfully completed feasibility study Executed project contracts with Buckskin Mining Permitting and design underway Seeking customers to enter into off-take agreements Bayan Resources (Indonesia): A 1MTPA plant at Tabang coal mine in Indonesia will be commissioned in Q to reach full production capacity Q2-Q production expected to reach 5MTPA by 2011 Bayan agreed to acquire up to 1.5 MTPA for the first four years-- represents over US$250M in revenue Adaro Group / Itochu Corporation (Indonesia): Feasibility study successfully completed Plans to build the first of 8MTPA plants at East Kalimantan mine in 2009 Datang International Power (China): Working towards finalizing agreement on commercial terms for a JV with Datang Facilitates construction of 10MTPA plants at Datang s sub-bituminous coal mine in Inner Mongolia, China 20

21 Track Record of Success Supports Our Growth Potential: Building a Global Business Black River (Africa): Joint venture agreement with Black River Asset Management LLC White Energy to own 51% of the JV Company JV company will actively originate, develop, construct and operate coal upgrading plants in Africa JV company will have exclusive right to utilize White Energy s patented coal upgrading technology in Africa Equity contributions will be funded 66% by Black River Black River has committed, subject to milestones, US$70 million investment Asia Special Acquisition Situation Corp (South East Asia): White Energy to merge its South East Asian business with US listed company ASSAC (AMEX:CIO) subject to shareholder approval Merged company to be valued at AU$385 million (US$250 million) Merged company to have cash reserves of AU$170 million (US$110 million) Post merger, US listed company to be called White Energy South East Asia Corporation (WESEAC) and to be managed by White Energy White Energy to own 56% of WESEAC WESEAC will have exclusive right to utilize White Energy s patented coal upgrading technology in South East Asia 21

22 Financial Snapshot Consolidated Balance Sheet (A$000 s) 30 Jun Jun Jun 2006 Current Assets 40,056 18,411 6,700 Non Current Assets 108,113 67,482 59,126 Total Assets 148,169 85,892 65,826 Total Liabilities 77,173 8,423 4,411 Net Assets 70,996 77,469 61,415 Total Equity 70,996 77,469 61,415 Stock Listings ASX: WEC USA OTC: WECFY (OTCQX) Consolidated Statement of Cash Flows (A$000 s) FY 2008 FY2007 FY2006 Net Cash (Outflows) from Operating Activities (7,994) (1,301) (769) Net Cash (Outflows) from Investing Activities (44,007) (12,700) (1,518) Net Cash Inflows from Financing Activities 71,884 22,509 5,902 Net Increase (Decrease) in Cash & Equivalents 19,883 8,508 3,615 Closing Cash & Cash Equivalents 34,956 15,072 6,564 22

23 Forward Looking Statements Except for the historical information contained herein, the matters discussed in this presentation contain forward-looking statements, including statements, containing the words planned, expects, believes, strategy, opportunity, anticipates, and similar words. Such forward-looking statements are subject to known and unknown risks, uncertainties, or other factors that may cause the company s actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. In addition where comparisons are made between White Energy Company and other companies, we have made best efforts to properly interpret publicly made information by these companies but cannot be certain that such comparisons are completely accurate. For more information visit or contact: John Atkinson Managing Director White Energy Compan y Limited Judy Tanselle President White Energy Coal North America, Inc