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Protecting The Environment Today To Fuel Tomorrow ™
www.novoenergies.com
OTC BB: NVNC
Forward-Looking Statement: Except for statements of historical fact, this presentation contains certain "forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on Novo Energies Corporation’s predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors that Novo Energies Corporation has little or no control. Such forward-looking statements are made only as of the date of this presentation and Novo Energies Corporation assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Recipients of this presentation should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in the filings of the company with the Securities and Exchange Commission from time to time.
Forward Looking Statement
1. Novo Energies Corporation 4 2. Energy Outlook 7 3. Waste to Liquid 12 4. Financial Projections 22 5. Strategy and Plan of Action 29 6. Management and Technical Team 34 7. Corporate Information 39 8. Contact Information 40
i. Novo Energies Corporation
4
1. Novo Energies Corporation
To develop green energy solutions while maintaining a commitment to conserve energy, natural resources, and help reduce pollutants and unwanted materials.
Mission Statement
5
Overview
6
Novo Energies’ subsidiary, WTL Renewable Energy Corporation, has developed and designed a novel, effective, and environmental process to transform plastics and tires to low carbon liquid fuels such as diesel, gasoline and fuel additives.
Novo Energies will build small local plants to transform plastics and tires to liquid fuels such as diesel, gasoline and fuel additives in an environmental and cost effective manner.
ii. Energy Outlook
7
2. Energy Outlook
“In the IEO2009 projections, total world consumption of marketed energy is projected to increase by 44 percent from 2006 to 2030. The largest projected increase in energy demand is for the non-OECD economies.” Energy Information Administration
The Energy Outlook
World Marketed Energy Consumption World Marketed Energy Consumption
8
“For all the current talk about the imminent end to the petroleum age, hydrocarbons will continue to play the leading role in meeting the world’s growing hunger for energy for at least the next quarter of a century and probably well beyond.” (International
Energy Agency 2009)
Liquid Fuel Dominates Landscape
World Marketed Energy Consumption World Liquid Consumption by Region & Country Group
9
According to the International Energy Agency, based on current demand/supply estimates, price per barrel of oil could fluctuate between $120 and $145 by the year 2030.
10
The End of Cheap Oil
World Proven & Unproven Oil Reserves World Oil Prices in Three Cases
11
Need for Alternative Fuel Market
• Persistent high oil prices • Global demand trends • Instability in the Middle East and Africa • Supply limitations
• Enhanced environmental awareness • Growing political consensus • Tightening global and local regulatory restrictions
• Energy self-sufficiency for economies • Increase national security • Create new jobs • Reduce trade and budget deficit • Generate economic interest and growth • Foster new technology development
www.americanenergysecurity.com
iii.i WTL: The Opportunity
12
3. Waste To Liquid
NOVO Energies’ Solution - Waste to Liquid. The Green, Renewable Source of Energy
Alternative Liquid Fuel Sources
13
Coal to Liquid (CTL)
Gas to Liquid (GTL)
Biomass to Liquid (BTL)
Waste to Liquid (WTL)
• Non-Renewable • CO2 emissions
• Non-Renewable • CO2 emissions
• High production cost • Need for Energy Crops (e.g. wood, food stock)
• Elimination of waste • Renewable source of energy • Extensive supply of materials
Production cost between $55-$75 per barrel, makes Novo Energies’ technology and process superior to other methods and produces fuel products at lower cost than GTL and BTL.
Waste to Liquid: Cost Advantage
14
0
25
50
75
100
125
150
175
200
Comparative Liquid Energy Sources Technology
Pro
du
cti
on
Co
st
(US
D/b
arr
el)
Coal to Liquid (CTL) $35-$70/barrel
Gas to Liquid (GTL) $80-$180/barrel
Biomass to Liquid(BTL) $60-$180/barrel
Waste to Liquid(WTL) $55-$75/barrel
Low production cost and capital investment places Novo Energies as one of the leading and the highly cost effective solutions in the renewable energy market.
Waste to Liquid: Cost Advantage
15
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Cap
ital
Investm
en
t p
er
barr
el/d
ay (
US
D)
Coal to Liquid (CTL) $60,000-$70,000
Gas to Liquid (GTL) $30,000-$50,000
Biomass to Liquid (BTL) $45,000-$50,000
Waste to Liquid (WTL) $30,000-$45,000
Comparative Liquid Energy Sources Technology
Waste to Liquid: US Mandated Requirements
16
barr
els
(m
illio
n)
Source: www.americanenergysecurity.com
Novo Energies is committed to reduce waste, minimize the impact on the environment and generate renewable fuel for energy needs.
Waste to Liquid: Renewable Energy
17
Novo Energies’ Two-Fold Advantage
Removal of plastic and tire waste
from landfills
Production of low
carbon fuel and fuel additives
Remove Transform Produce
Waste Waste to Liquid Fuel and Fuel Additives
Novo Energies’ process can be installed anywhere there is a minimum of 15 tons/day residual plastic waste and/or 30 tons/day tire waste.
Novo Energies’ Solution
18
Plastic
Tires
Waste type Input for plant
15 tons/day
30 tons/day
50-65 barrels/day of fuel or fuel
additives
Output
Novo Energies’ Technology
19
Plastics
Tires
Novo Energies’ novel process and technology
Gasification Thermolysis
Fuel
Extensive supply of waste plastic and tires at a very low cost allows Novo Energies to effectively recycle and generate energy.
Supply of Feedstock
20
• Plastic and tire waste continues to grow globally.
• Landfills and other disposal methods are unable to handle the pace of waste generation.
• Plastics and tires waste available
at very low cost.
• Novo Energies offers a solution to recycle plastic and tires and produce fuel.
Environmental Impact
The two processes reduce waste from the environment making the energy generation process renewable and green.
21
Plastic Process Tire Process
• 98% reduction of waste during process • Non-hazardous and non-toxic
• 98% reduction of waste during process • Carbon Black (30%) By-Products
Treatment• Easy disposal of waste • No environmental damage
• Easy disposal of waste • Carbon Black converted to fuel additives
Input
iv. Plant Economics
22
4. Financial Projections
Economics: Plastic Plant In
itial
Inve
stm
ent
Capital $2,900,000 Annual Income $2,216,250
Annual Expenses $1,425,800
EBITDA $ 790,450
Return on Investment: 27%
US
D
23
24
Projections: Plastic Plant
Total installed Process (15 ton/day Plastics)
Key Facts (per plant)
Revenue: $2.2 million Yield: 4 barrels/ton EBITDA: $0.8 million Plastic removed from landfills: 15 tons/day
Economics: Tire Plant
Capital $3,200,000
Initi
al In
vest
men
t
Annual Expenses $1,890,700
EBITDA $ 1,621,550
US
D
Return on Investment: 51%
Annual Income $3,512,250
25
Projections: Tire Plant
26
Total installed Process (30 ton/day Tires)
Key Facts (per plant)
Revenue: $3.5 million Yield: 2.3 barrels/ton EBITDA: $1.6 million Plastic removed from landfills: 30 tons/day
Financial Snapshot
27
Tire Process Plastic Process
30 tons per day of tires (approx. 2600 tires per day)
15 tons per day of plastic (approx. a 20’ truck load of waste plastic)
produces daily produces daily
11,250 liters of fuel 10.5 m.t of carbon black 3 m.t of steel
9,850 liters of fuel
Daily estimated income: $11,700 Daily estimated income: $7,380
* Based upon fuel and commodity prices as of May 2009, USD
Potential Carbon Credits
28
Basis: 2.6 kg of carbon credits/liter
v. Strategy & Plan of Action
29
5. Strategy and Plan of Action
Strategic Plan of Action
30
Install plants with a capacity of: • 15 tons/day (plastic) • 30 tons/day (tire)
Produce 50-65 barrels of fuel or fuel additives per day.
• Secure contracts with suppliers and establish plants close to material supply (plastic, tires). • Plants will be located close to end product market.
• Removal of waste from landfills with minimal environmental impact. • Local job creation as a part of the local environmental solution.
Strategy
Outcome
Key success factors
Novo’s promise
Target Market
31
Governments Private Sector Others
• Municipalities• Local governments• Military bases• Small economies
• Trash haulers• Material Recovery Facilities (MRF)• Existing landfills• Large corporations
All government and private sector that needs supply of:
• Synthetic diesel• Fuel additives
32
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Install first operating plastic plant with a nominal input capacity of 15 tons/day.
Install first operating tire plant with a nominal input capacity of 30 tons/day.
• Continue evaluation of additional technologies and strategic opportunities.• Establish and implement strategic partnerships globally.
Continue to install and operate plastic and/or tire plants in strategic locations.
15 Month Timeline
Install two additional plants:Plastic (1)Tire (1)
Install two additional plants:Plastic (1)Tire (1)
Timeline
Growth Drivers
33
Obama administration and the U.S. congress are moving towards a renewable fuel portfolio standard and a carbon cap trade system.
The U.S. and Canadian governments have committed billions of dollars for renewable energy projects which includes grants and tax credits.
The Energy Policy Act of 2005 (“EPACT 2005”) established minimum nationwide requirements for production of renewable fuels in the U.S. – 7.5 billion gallons by 2012.
Increasing demand for energy and higher environmental standards in OECD countries have forced corporations to find effective solutions for waste disposal.
vii. Management & Technical Team
34
6. Management and Technical Team
Management Team
35
André L’Heureux, President and Chief Operating Officer
• Over 25 years of research and development experience in biotechnological and chemical related products.
• Served as President of Chemco Inc., a chemical company specializing in industrial water treatment.
• Graduated from Limoilou College, Quebec, Canada with a degree in mechanical technology.
Antonio Treminio, Chief Executive Officer and Chairman
• Over 15 years of experience as consultant to public companies advising on structuring, mergers and
acquisitions, re-capitalization and financing with a focus on mining and the energy sector.
• Served as President of Lusierna Asset Management Ltd., a private venture capital firm from 2003 until 2008.
• Attended Loyalist College, Ontario, Canada.
Management Team
36
Daniel Ringuet, Vice President - Strategic Planning
• Over 17 years of consulting experience with public and private companies and successfully responsible for
raising raised over 90 million dollars.
• Served as President of Darin Capital, a private holding company based in Montreal, Canada.
• Started career in 1982 as a stock broker with Geoffrion Leclerc, a Montreal based investment
firm.
Philippe Germain, Investor Relations Coordinator
• Worked as consultant since 2006 with companies in North America and Europe with an emphasis on capital
raising, accounting and communications.
• Joined Darin Capital, a private holding company based in Montreal, Canada as a consultant in 2008.
• Graduated from University of Laval, Quebec, Canada with a degree in economics and political
science.
Technical Team
37
Normand Thouin, Mechanical Engineer
• Over 30 years of experience working in chemical and petrochemical operations.
• Held directorial positions with Shell, Petro-Canada and Ultramar in Canada. President of GCM Consulting, a
Montreal based engineering firm.
• Graduated from Ecole Polytechnique de Montreal with a bachelors in mechanical engineering.
Claude Bilodeau, Chemical Engineer
• Over 32 years of experience with chemical and petrochemical operations.
• Director of PTT PolyCanada, a division of Shell Canada.
• Graduated from Ecole Polytechnique de Montreal with a bachelors in chemical engineering.
.
Technical Team
38
René Lamonde, Chemical Engineer.
• Over 40 years of experience working in petrochemical operations.
• Held directorial positions with Shell Canada.
• Graduated from University of Laval, Quebec, Canada with a degree in chemical engineering and a
business management diploma from HEC, Montreal, Canada.
Guy Brouillard, Chemical Engineer.
• Over 20 years of experience in chemical and petrochemical operations.
• Held senior engineering positions with Dexter Chemical and DuPont Canada.
• Graduated from University of Ottawa, Canada with a degree in chemical engineering.
Corporate Information
Novo Energies Corporation
Common Stock Listing: NVNC (US OTC Bulletin Board) Total Shares Outstanding: 24.9 million
Transfer Agent:
Florida Atlantick Stock Transfer Inc. T : +1 (954) 726-4954 F : +1 (954) 726-6305
Auditor:
Myler & Company LLC T : +1 (732) 671-2244 F : +1 (732) 671-2266
Legal:
Sanders|Ortoli|Vaughn-Flam|Rosenstadt llp 501 Madison Avenue - 14th Floor New York, NY 10022 T : +1 (212) 588-0022 F : +1 (212) 826-9307
39
Boivin Desbiens Senécal, s.e.n.c. 2000-2000, Avenue McGill College Montréal QC H3A 3H3 Canada T : +1 (514) 844-5468 (ext. 242) F : +1 (514) 844-5836
United Sates Canada
Contact Information
Novo Energies Corporation 750 Côte de Place d’Armes, Suite 64 Montréal, Québec Canada H2Y 2X8 Tel: + 1 (514) 840-3697
Antonio Treminio, Chief Executive Officer and Chairman Email: [email protected]
Daniel Ringuet, Vice President-Strategic Planning Email: [email protected]
Philippe Germain, Investor Relations Coordinator Email: [email protected]
40