Date post: | 13-Jan-2016 |
Category: |
Documents |
Upload: | basil-wilcox |
View: | 216 times |
Download: | 1 times |
Evergreen Energy Inc.
Corporate Presentation
February 2009
Converting the world’s abundant coal reserves into clean, efficient,
affordable energy.
2
Presentation Topics and OutlinePresentation Topics and Outline
Evergreen Energy Overview K-Fuel® Technology K-Fuel® Benefits Enhanced Design Plant Options
Terminal Mine Mouth K-Direct®
K-Fuel® Economics Business Structure Options
3
Evergreen Energy Inc. Overview
4
Company OverviewCompany Overview
Evergreen Energy Inc. was founded in 1984 (formerly known as KFx)
Evergreen is publicly traded on the NYSE Acra: EEE
Evergreen consists of three separate businesses:
1. Evergreen Energy provides coal upgrading through its patented K-Fuel® process
2. C-Lock Technologies Inc., a subsidiary of Evergreen, provides carbon information management through GreenCert™, a web-based management tool for agriculture and energy that allows precise and accurate green house gas emissions measurement
3. Buckeye Industrial Mining Company, a wholly owned subsidiary of Evergreen, mines high quality bituminous coal in Central and North Appalachia
5
Evergreen – A Compelling StoryEvergreen – A Compelling Story
Favorable price spread between low and high-rank coals High-rank coals are in short supply Increasing environmental regulations increasing the cost burden
for burning low-rank coals Potential tax credits (Section 45) improve economics
Attractive economics
Large untapped markets
End user (utilities) benefits
Better fuel sourcing flexibility: ability to source coal anywhere and refine on site reducing utility’s dependency on rail system
Reduces need for retrofits/installation of post-combustion control equipment
Increases boiler efficiency; reduces operating expenses Meets tightening environmental standards (SO2, NOx, Hg)
Approximately 300 coal fired units in US providing 54 GW of electricity will not be installing any advanced controls by 2020
Compelling international market – Asia, Eastern Europe Large low-rank coal reserves Energy security Environmental regulations
6
Evergreen – A Compelling Growth Story (Cont’d)Evergreen – A Compelling Growth Story (Cont’d)
Proven technology and process
High barriers to entry
High caliber, proven
management team
Only commercially proven process for coal refining Proven Sasol-Lurgi commercial equipment Repeatable process provides consistent product
Patented process design Evergreen owns 30+ case patents in approximately 40
countries Tremendous coal technical/industry expertise
Refining, gasification, liquefaction
Proven ability to formulate innovative strategies and successfully execute
Track record of developing and implementing new technology Financial discipline and management of capital intensive
projects for maximum returns Experience building and growing companies
7
K-Fuel® Technology
8
Evergreen’s patented technology uses an integrated, computer-controlled process that precisely applies TIME, HEAT, and PRESSURE to upgrade and enrich low rank coals
Screen “Cook” Cool Condition
WWT Steam
P+ P-
K-FuelK-Fuel®® Technology Technology
9
K-Fuel® Technology - Simplicity of Design
Non-Condensable Gas
Process Water To Treatment
K-Fuel® Product
Steam Condensate
Steam From Boiler
Coal Feed
Cooling Water In
Cooling Water Out
10
K-Fuel® – The Technology Evolution
Developed partnership with Bechtel Power Corporation to provide long-term engineering, design, and construction support
Primary goal of Bechtel is to build K-Fuel® refineries that are commercially robust
Bechtel Power design efforts are focusedon process improvements and technology upgrades
Process/Technology Verification
(60+) low rank (i.e. sub-bituminous and lignite) coal feed stocks have been successfully tested and upgraded resulting in substantial increases in HV
International coal feed stocks tested and upgraded have included coals from Inner Mongolia, Indonesia, and Russia
Test burns at multiple power generation facilities in the U.S. have been successfully completed using K-Fuel® resulting in increased combustion efficiencies
11
K-Fuel® - First Large-Scale Coal Refinery
First large-scale K-Fuel® refinery commissioned at Ft. Union, Wyoming, US in December, 2005
Plant ACHIEVED all four of its goals:1. produce K-Fuel® under commercial
conditions
2. correlate bench scale data with commercial scale performance
3. produce K-Fuel® to meet customer specifications
4. provide testing ground for process flow and equipment/technology improvements
Plant shutdown March 2008 to focus on development of commercial facilities domestically and internationally
12
K-Fuel® Benefits
13
K-FuelK-Fuel®® Value-Added Product Benefits Value-Added Product Benefits
K-Fuel® Upgrading Technology increases the efficiency and heating value of sub-bituminous and lignite coals 30% on average by decreasing moisture content by 20% - 25%
K-Fuel® Upgrading Technology makes low rank coal reserves marketable.
K-Fuel® reduces combustion energy requirement
K-Fuel® improves efficiencies of post-combustion environmental controls
Desirable price spread exists between lower mining cost of low rank coal and higher Kcal prices
Economic
Environmental
Reduced Hg
Reduced chlorides
Improved efficiency may result in:
Reduced SO2
Reduced CO2
Reduced NOx
14
K-Fuel® Properties
K-Fuel® is generally characterized by the following analytical properties compared to the raw feed coal:
Lower Total Moisture Lower Equilibrium Moisture Higher Heating Value (kcal/kg) Lower Volatiles Higher HGI (easier to grind)
15
K-Fuel® Changes the Characteristics of the Coal
16
K-FuelK-Fuel®® Upgrade – Powder River Basin Coal Upgrade – Powder River Basin Coal
Origin
As Received K-Fuel®
Moisture
(%)
Heating Value
(btu/lb)
Mercury
(lb/Tbtu)
Equilibrium Moisture
(%)
Heating Value at EQM
(Btu/lb)
Mercury
(lb/Tbtu)
Black Thunder 26.44 8,804 15.78 15.40 10,846 3.75
Coal Creek 27.46 8,547 0.92 14.73 10,256 0.27
Buckskin Cajun Blend
28.41 8,325 12.90 13.90 10,430 3.11
Ft. Union Canyon 26.81 8,222 6.81 16.63 10,188 2.00
17
K-Fuel® Upgrading – Indonesian Coal
Physical Property of Coal Feed Coal Value K-Fuel®ValueEQM (wt %) 39.4 14.6
Equilibrium HV
(kcal/kg)3,665 5,665
Hardgrove Grindability 62 61
Friability Index (%) 9 19
Hg (ppm) 0.023 0.009
18
Process ConsistencyProcess Consistency
Heating value of PRB feed coal and K-Fuel® product
10500975090008250750067506000
0.0025
0.0020
0.0015
0.0010
0.0005
0.0000
BTU/ lb
Norm
aliz
ed F
requency
8108 305.6 302
8063 305.3 264
8140 227.9 40710195 379.3 226
10077 356.3 390
Mean StDev N
Raw Feedstock
Raw -1/4"Raw Screened Coal
Rehydrated K-Fuel®
Rehydrated & Dust Treated K-Fuel®
Sample Point
Histogram of BTU/ lb
*post-processed data is as produced*raw data is as received
20
Enhanced Design ObjectivesEnhanced Design Objectives
Minimize Capital Cost
Minimize Operating and Maintenance (O&M) Cost
Enhance:
Plant Reliability
Plant Throughput
Product Quality
Redundancy in Design
Modularity & Scalability
Repeatable Standard Design
21
Enhanced Design Improvements
When compared to the Ft. Union large-scale plant, the enhanced design has greater throughput and lower costs:
60 tons per hour capacity 37% less concrete 60% less pipe 80% less conduit 90% fewer right angle pipe
turns
22
K-Fuel® Refinery Options
23
Terminal Concept
Benefits of locating a K-Fuel® facility at an existing coal terminal include:
Multi-Mode Transport Systems Upgrade Multiple Low Rank Sources Access to Multiple End-Users Enlarges Economic Shipping Radius
24
Mine Mouth
Benefits of locating a K-Fuel® facility at the mine include:
Negligible feedstock transport cost
Capitalize on mine infrastructure Elimination of fines disposal
issues Favorable rail contracts Transport only finished product
25
K-DirectK-DirectTMTM: A Power Plant Solution: A Power Plant Solution
Benefits include: Utilize multiple feedstock
sources Sharing of infrastructure Feed K-Fuel® directly to boiler
Utilize power plant’s excess steam if available
Grow refinery capacity to meet power plant demand via modularity
K-Direct Facility
26
K-Fuel® Economics
27
K-FuelK-Fuel®® - Favorable Economics - Favorable Economics
High rank coals are in short supply globally causing an increase in pricing in comparison to lower-rank coals. This results in favorable economics for K-Fuel®.
Source: With permission, selected from listed prices in Platts Coal Outlook, "Weekly Price Survey." Note: The historical data file of spot prices is proprietary and cannot be released by EIA; see http://www.platts.com/Coal/.> Analytic Solutions > COALdat, or > Newsletters > Coal Outlook.
In the US, CAP and NAP coal prices have increased substantially, while PRB coals have remained relatively flat
In Asia and NW Europe the coal prices have generally been increasing since 2000
28
Project Economics
Economics are site specific Develop detailed models for each potential site Models provide cash flow, NPV and IRR Key inputs into the model will include:
Business Structure Capital Expenditures Operating Expenditures Feedstock Costs K-Fuel® Price Handling and Transportation Fees Estimated Taxes Plant Capacity Energy Requirements Undersized Coal Utilization Post Processing Systems
29
Capital Expenditures
CAPEX is site and project specific and is dependent on:
Power and Steam Source/Supply Synergies with Existing Infrastructure Site-Specific Environmental Requirements Site Conditions Feedstock and K-Fuel® Handling and Storage Requirements Regional Construction, Fabrication, and Labor Capabilities
30
Operational Expenses
OPEX is site and project specific and is dependent on:
Raw materials Cost of Steam Cost of Electricity Waste Water Treatment Personnel and Contract Services Maintenance and Operating Supplies Transportation Lease and Tolling Fee
31
Business Structures Options
32
Business Structures
Joint Venture (Equity Partners) BOO (Tolling Arrangement) BOT (Build Own Transfer) Technology License