PRISTINETM by CCTI Clean, affordable coal..!!

Report
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.
AAA
PRISTINETM by Clean Coal Technologies, Inc.
Cleaner, affordable coal..!!
Roundtable Conference
New Delhi
September 21, 2011
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.
AAA
Macro Picture: A Strong Tailwind
 Strong Economic Growth Dynamics in China and India
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Demand for electric power is growing rapidly, driving demand for coal
Coal’s share in global energy mix is rising: 29% in 2010 to 30% by 2030 (EIA)
Very robust price, consumption and price trends globally
Nuclear power is an option, but unpopular, given safety and waste disposal concerns
Renewables share in energy mix is rising slowly; will not displace fossil fuels
 Reducing Pollutants is the key to coal’s survival as a viable fuel source
 Environmental costs have a huge impact on economics of global energy industry
 Post-combustion scrubbing of pollutants requires large capital expenditure and reduces salable energy
 Expensive primary fuel (factoring in cost of post-combustion scrubbing) is a major risk for low-income countries
 Dry Coal is a Must
 Growth of seaborne commerce in coal necessitates a dry coal solution
 Restrictions on export of low-rank coal are coming into existence - Indonesian example
 Favorable Geopolitics: Coal is vital to energy independence
 Development and use of domestic coal lowers dependence on foreign fuels and offers significant foreign
exchange savings
CCTI is Ideally Positioned to Address Today’s Need for Affordable, Cleaner Fuel.
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CLEAN COAL TECHNOLOGIES, INC.
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Clean Coal Technologies, Inc. (CCTI) in Brief
 Company established in 2007, offers important coal upgrading technologies
 Pristine™: CCTI’s flagship clean coal process patent #6447559 is grounded in well-established coking
technology. The process has been fully validated at a U.S. pilot scale facility; low commercial scale-up risk
 Pristine-M™ : Provisional patent application filed for dry coal process that will be put into practice a derivation
of the clean coal process.
 SEE&I to engineer and construct both types of CCTI plant worldwide, under 15-year contract with CCTI
 Business Profile of CCTI
 Recently signed 30-year TLA 1.5 million tons initial deployment; 5 millions tons per annum over life of 12 year
contract
 Contract pending with Chinese company in a CTL project in Inner Mongolia
 Pipeline of business beyond China: world class companies in Asia (Indonesia, India, Philippines)
 Exploration stage to deploy CCTI process in the U.S.
* Patent Cooperation Treaty; individual filings in Indonesia, China, Mongolia, India, South Africa, Brazil, Chile, Colombia, U.S.
** SAIC Energy, Environment & Infrastructure (formerly the Benham Companies)
CCTI is ideally positioned to address today’s need for an affordable, cleaner coal
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CLEAN COAL TECHNOLOGIES, INC.
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Understanding Coal Upgrade Technologies
 An ideal “clean coal” would eliminate emission of pollutants such as sulfur and mercury
and
Greenhouse Gases (GHG)
 It would be free of moisture and, therefore, a higher-energy fuel source
The Reality:
 Upgrade technologies address only some of these requirements. No single technology
addresses all of them. Reduction of Co2 remains a challenge.
 Mainstream technologies, competitors to CCTI’s, are designed to upgrade low-ranking coal:
 All remove high levels of moisture that render the coal uneconomic to exploit and transport
 Some technologies also remove volatile matters
 Some companies state that their processes reduce Co2 emissions, but this claim may be somewhat
misleading
 May eliminate the need for expensive post-combustion emissions scrubbers
 Some technologies are able to recover chemical byproducts and commercialize them to supplement
revenues
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Understanding Coal Upgrade Technologies- cont.
Technology differentiators:
1. Technologies dedicated to coal gasification: do not directly compete with CCTI
 Complete conversion of coal to a synthetic gas (syngas)
 Consists of hydrogen and carbon monoxide –converted to chemicals and fuel
However: CTTI’s process is an ideal front-end technology; synergistic with gasification stage of FischerTropsch
2. Technologies, such as CCTI’s, “mild gasification”, come in two varieties:
 Remove moisture only – Pristine-M™
 Remove moisture and volatile matters – Pristine™
3. Technologies that remove both moisture and volatile matters, also come in two varieties:
 Technologies that capture volatiles as byproducts to supplement revenues
 Technologies that do not capture and commercialize the volatile matters
 CCTI can remove up to 100% of water, mercury, light gases, anthracenes, napthalenes, organic sulfur, and
up to 93% of heavy tars and bitumens, and some amount of the pyritic sulfur.
CCTI’s technologies are “mild gasification” processes that remove moisture only, or moisture and
volatile matters while monetizing the latter.
Note: For large-scale deployments, the addition of captive refinery and/or gas turbine power generation equipment may be warranted.
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Differentiators of Commercial Processes
Data to compare relative costs is proprietary. However, the cost drivers are readily identifiable
and include the following:
1.
External vs. re-circulated process heat
2.
Ambient vs. high pressure systems
3.
Batch vs. continuous process
4.
Coal pulverization vs. retaining integrity of feed coal. CCTI retains integrity of feed coal; in third-stage chamber,
the coal is coated by cooling gases leaving it with a slightly sticky surface which prevents moisture re-absorption.
CCTI plants can be safely located at mine head; no transport/handling issues.
5.
Byproducts captured and commercialized. The revenue stream from coal derived liquids can be very significant.
The coal derived liquids (CDLs) can be very similar to crude oil and, potentially, more valuable than the coal itself.
6.
Plant design: efficiency and reliability The concern is that some plants are designed around complex, unproven
components whose performance over time is not known.
7.
Plant economics: competitor data is proprietary
The staged heating process developed by SAIC is similar to well-established plant processes that
are in wide use in other industries. There is patent protection for key parts of the process;
software protection a major factor.
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Powerful Benefits for Coal and Power Producers
Pristine™ :
 Burning of CCTI PristineTM coal may obviate need for expensive sulfur and mercury
removal scrubbers
 Upgrades uneconomical mine head coal to make it economically viable
 Recovers marketable liquid hydrocarbons from coal that are otherwise burned and
released into the atmosphere
 Bespoke process to create optimal chemical benefits in a coking plant
 Modular plant design imparts flexibility and helps control costs
 Best of breed process produces high financial returns
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CLEAN COAL TECHNOLOGIES, INC.
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Results – Pittsburgh Research Facility
CCTI/SAIC have tested over 40 different coal types using CCTI technology
Reduces moisture by up to 100%
Reduces volatile matters by up to 90%, depending on source coal
Removes over 90% of inherent mercury and organic sulfur
Facilitates removal of ash
Re
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CLEAN COAL TECHNOLOGIES, INC.
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Results – Pittsburgh Research Facility
CCTI Product Test Results
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CLEAN COAL TECHNOLOGIES, INC.
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Liquid Chemical Analysis
The pyrolysis process generates a broad spectrum of more than a thousand individual condensable
materials, including aromatic and aliphatic compounds in the boiling point range 60 – 700°C, carbon
number range C4 – C45, and with molecular weights from 58 to 600+, depending on the feedstock coal
and processing conditions. The table below shows a typical representation.
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CLEAN COAL TECHNOLOGIES, INC.
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Economics of CCTI Process - Pristine™
Plant Parameters
Throughput Capacity, Tons/yr.
Coal Characteristics
2,112,253
Pristine™
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Moisture
27.0%
3.02%
$260.00
Volatiles
30.1%
15.21%
Number of Modules
Estimated Plant Cost, $mm
Feed Coal
Kcal./Kg.
4261
5761
Running Capacity
961,644
Btu/lb.
7668
10368
Pristine Output
961,644
Price Benchmarks, FOB
$62.00
$113.00
CDL Price per Barrel
$35.00
Nominal Plant Capacity, Tons/yr
Commercial Tonnage, incl CDLs
CDLs Production, tons
1,000,000
1,509,656
3,868,965
Capital Structure
(Millions)
Financial Benefits
Year 1
Senior Debt
$52.00
Gross Upgrade Benefit per Ton
$51.00
Equity
Total
$208.00
$260.00
CDL Revenues per Ton Pristine
Net Benefit per Ton Pristine
$143.37
$76.61
Returns Analysis
Revenues
- Pristine
- CDLs
EBITDA
ROI, after int. expense
Investment Payback, years
Year 10
$279.95
$108.42
$171.53
$170.93
38.8%
2.84
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CLEAN COAL TECHNOLOGIES, INC.
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Economics of Pristine-M™ (Dry Coal)
Moisture Substitution Process
Plant Parameters
Throughput Capacity, Tons/yr.
Coal Characteristics
1,484,865
Nominal Plant Capacity, Tons/yr
Running Capacity
Pristine Output
Commercial Tonnage, incl CDLs
CDLs Production, tons
Pristine-M™
5
Moisture
27.0%
3.00%
$50.00
Volatiles
30.0%
40.46%
Number of Modules
Estimated Plant Cost, $mm
Feed Coal
Kcal./Kg.
4261
6914
961,644
Btu/lb.
7668
12441
961,644
Price Benchmarks, FOB
$62.00
$130.00
1,000,000
Not Applicable
Not Applicable
CDL Price per Barrel
Not Applicable
Capital Structure
(Millions)
Financial Benefits
Year 1
Senior Debt
$10.00
Gross Upgrade Benefit per Ton
$68.00
Equity
Total
$40.00
$50.00
CDL Revenues per Ton Pristine
Net Benefit per Ton Pristine
$0.00
$20.36
Returns Analysis
Revenues
- Pristine
- CDLs
EBITDA
ROI, after int. expense
Investment Payback, years
Year 10
$129.12
$129.12
$0.00
$50.47
49.7%
2.20
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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.
AAA
Summary
CCTI is well-positioned to commercialize its technology:
 Best of breed technology in today’s competitive landscape
 World-class technology partnership- high quality project execution
 Competitive plant design: module-based clean coal process
 Manageable entry price: the cost of a single commercial module is only
$20-$25 million
 One million-ton dry coal plant cost estimated at US$40- $50 million.
 Dry coal facility is lowest-cost solution in the market
 Low operating expenses
CCTI is ideally positioned to address need for an affordable, cleaner and
dry coal solution.
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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.
AAA
Contact Information
CORPORATE:
INVESTOR RELATIONS:
Robin T. Eves, Chief Executive Officer
[email protected]
Richard Cooper, President
[email protected]
Ignacio Ponce de Leon, Chief Operating Officer
[email protected]
NYC HQ: 295 Madison Avenue (12th Floor)
New York, NY 10017
Tel: 646-710-3549
FL OFFICE: 12518 West Atlantic Boulevard
Coral Springs, FL 33071
Phone: 954-344-2727/ Fax: 954-757-1765
Jennifer K. Zimmons, Ph.D., Managing Director
[email protected]
410 Park Avenue- 4th Floor
New York, NY 10022
Phone: 212-317-1400/ Fax: 212-317-1184
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