Ener-Core Company Presentation - May 2015

OTCQB: ENCInc. Company Presentation - May 2015

February 2015

2 | © 2015 Ener-Core, Inc. OTCQB: ENCR

! Designs, manufactures and has commercially deployed in the US and Europe its proprietary technology that serves the needs of a variety of industries by enabling the conversion of waste gases directly into efficient, clean power (17 patents granted; additional 66 filed).

! Technology enables customers to: o Convert their own industrial waste gases into revenue-generating sellable energy, or… o Save money by using the converted energy to significantly reduce their energy purchases.

! First commercial license partnership in place with Dresser-Rand (first Dresser-Rand client: Pacific

Ethanol). Plans for additional license partnerships with multinational corporations capable of upselling to their existing customer bases.

! Shift to higher margin business by late 2017 when Company becomes a pure licensor of its technology.

! Management team and board of directors weighted with recognized leaders from the energy, power equipment and pollution control industries.

Company Highlights

Over 150 billion cubic meters of gas are flared annually

Monetary value = $ 65 billion Power for 100 million homes.

806.8 BCM

671.0 BCM

224.2 BCM

190.2 BCM

188.9 BCM

146.9 BCM

[Data Source: US Energy Information Association (EIA)]

If this were produced by a country, it would be the 6th largest global gas producer

150.0 BCM

The Divided Republic of Wasted Gas & Money


Why do Industries not use their waste gases?

Combustion does not work with low energy gases! And combustion equipment does not work well with contaminated gases.

Industry uses combustion to obtain energy

from gases

Combustion needs fuel with high energy

content

| © 2015 Ener-Core, Inc. OTCQB: ENCR 6

•  Clean base-load power

•  Prevents and reduces emissions

•  New value from waste gases – energy and revenues.

Ener-Core’s Solution The Power Oxidizer


Power Oxidation Replaces Combustion

Heat (Useable Energy)

O2

High energy fuel

Oxygen (Air)

Combustion / Flame

Milliseconds

O2

Low energy fuel

Oxygen (Air)

Power Oxidization

Heat (Useable Energy)

2-3 Seconds


Oxidation: A Natural Process

Oxidation occurs when a substance comes into contact with oxygen molecules. Almost everything, over time, reacts with oxygen…

Methane (in atmosphere) 10-20 years

Sterling Silver 2 weeks

Banana 5-7 days

Ener-Core 2-3 seconds!

Oxidation is usually a very slow process. Ener-Core accelerates this process.


Power Oxidation - How It Works

Air + waste gases are introduced to vessel

Heat Generated ! sent to a Turbine to generate electricity,

or ! sent to a Boiler to generate steam

CH4 + 2O2 CO2 + 2 H2O

Oxidation Reaction:

The oxidizer vessel creates the environment necessary to facilitate an exothermic oxidation reaction

This reaction releases heat energy which can be used to drive a turbine

1) The gases are compressed, heated and mixed

2) At controlled high temperatures the molecules have enough energy to react when they meet without the chain reaction needed in a flame (combustion)

3) During a “long” residence time (>2 seconds) all compounds “collide” with an oxygen molecule and the oxidation reaction occurs

4) Energy is released from the oxidation reaction, heating the chamber and the gas in the chamber

5) Excess heat is carried out of the oxidization chamber with the gas that is then used to generate power.


Ener-Core Technology – Turbine Configuration

Generator Turbine Combustion

Chamber

Heat Energy

Power (MW)

Compressed Air

Premium Quality Gas

Traditional Gas Turbine

Generator Turbine Power Oxidizer

Heat Energy

Power (MW)

Compressed Air

Low Quality Gas

Power Oxidizer Configuration


Ener-Core Technology – Boiler Configuration

Steam Boiler

Heat (Steam)

Combustion Chamber

Heat Energy

Air

Fuel (gas, coal, Wood, biomass)

Steam Boiler

Heat (Steam)

Heat Energy

Air

Power Oxidizer

Low Quality Gas

Traditional Steam Boiler

Power Oxidizer Configuration


Food Processing Plants Coal Mines

Petrochemicals Waste Water Treatment Plants Ethanol Plants / Distilleries

Oil & Gas

Ener-Core’s project economics are simple and consistent across a wide range of industries


MACRO description of the Opportunity for Multiple Industrial Sectors

Sources: www.global-greenhouse-warming.com www.eia.gov

3,000,000 industrial facilities worldwide generate 36% of global greenhouse gas emissions

Annual energy costs are over $800 billion

Waste Gas Near zero pollution

Energy savings of 35% to 50% per year at Industrial facilities

Increased Energy Efficiency

Power & Steam


Specific Example of the Opportunity for one Industrial Facility

Average Industrial Ethanol Facility, Oil Refinery, Petrochemical Plant, etc. Produces waste gases that get treated through some form of Emissions Destruction equipment.

Energy is Purchased. Annual energy costs are $5 - $10 Million (typically, energy represents ~5% of Operating Expenses of Industrial Plant)

Waste Gas Near zero pollution

Energy savings of $3-10 Million per year

Increased Energy Efficiency

Power & Steam


Unique Value Proposition

Waste Gas Destruction Systems

•  Installation costs •  Operation costs •  Goal: Clean or destroy the waste gas

Ener-Core technology generates clean power from emissions

•  Goal: Monetize the Gas by converting to energy; Sound Capital Investment

•  Flares •  Scrubbers •  SNCR Systems


The Size of the Opportunity

Ability to use waste gas to produce clean energy represents… •  65 – 100 million homes powered / year •  $65 billion annual electricity revenue •  $100 billion equipment market


Introducing New Technology Successfully

1. Minimize Technology Risks

2. Build to Industrial Scale

3. Protect the Intellectual Property

4. Leverage Established Brands

5. Reduce Manufacturing Capital Costs

6. Exploit Existing Sales Channels

7. Attract Top Caliber Talent











Minimize Technology Risks

! Simply replacing one component (the combustor) of existing power generation systems

! No moving parts ! No catalyst – no complex chemistry ! Simple temperature and pressure ! Over 2 years of real operation

!  The remainder of the power systems are the complex part – but they have already been perfected over decades.











Build To Industrial Scale

2014 2015 2016

Commercial scale power

2018 2017

Steam application

Industrial power and steam

Larger Industrial power and steam

Industrial Boilers Large Industrial Boilers

Larger Industrial power and steam

1.75 MW 250 kW 5 MW 10 MW

Steam Generation Integration

Gas Turbine Integration

2019











Ener-Core’s exclusive rights protect the design and utilization of Power Oxidation

•  Total applications filed: 66

•  17 patents granted •  13 Patents granted in 2014

•  Total independent claims: Over 150

•  Total dependent claims: Over 1000

Power Oxidization Technology

Protect The Intellectual Property











Provide the Bridge between Turbine Manufacturers and the market of low quality gases. Leverage their existing brands and sales networks.

Leverage Existing Brands

Potential $100 Billion power

equipment market related to low-

quality fuels


Licensing/Partnership Strategy

<0.3 MW 1 to 4 MW 5 to 10 MW 10 + MW

Gas Turbine Market: ! Partner with one distinct market leader per turbine size segment











Reduce Manufacturing Capital Costs

$0 M

$5 M

$10 M

$15 M

$20 M

$25 M

$30 M

$35 M

$40 M

$45 M

2014 2015 2016 2017 2018 2019

Purchase Orders Revenue to lag P.O.’s by 8-12 Months

Working Capital For manufacturing

Shift from manufacturing to licensor

Year 2015 2016 2017 2018 2019 EBITDA ($5MM) ($2MM) $6MM $30MM(1) $60MM(1)

Gross Profit Margins 20% 30% 40% 80%+(1) 80%+(1)

(1) Assumes full conversion to license only model











Exploit Existing Sales Channels

“Technology Licensor”











Highly reputable, respected professionals don't join small companies they don't believe in. Their options are much too vast.

Ex. Partner Oil & Gas Practice

Ex. Manager R&D Environmental Technologies

Ex. Global Head of Fossil and Renewable Energy Infrastructure

Ex. Global Managing Director of Power Generation

11th Administrator of the United States Environmental Protection Agency

Engineering Business Finance


Utilizing Waste: The Rockefeller Effect

For example, Rockefeller used noxious by-products that other refiners dumped into the river for heat to distill oil.

This toxic by-product was gasoline and soon after, the automobile industry was born; the automobile promised to consume that “vile, useless by-product,” and Standard Oil

cornered the new market.

John D. Rockefeller attributed a large part of his success to his aversion of wastefulness.

| © 2015 Ener-Core, Inc. OTCQB: ENCR 34

Thank you for your attention

Alain Castro, CEO

Watch our Whiteboard video explaining the power oxidation process and its applications

https://www.youtube.com/watch?v=YIwJNOF-SQU

Date post:	18-Aug-2015
Category:	Engineering
Upload:	ener-core
View:	55 times
Download:	0 times