“pristine” promise clean coal technologies, inc. aaa pristine tm by clean coal technologies,...
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“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
Strong Economic Growth Dynamics in China and India 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. 2
Macro Picture: A Strong Tailwind
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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 3
Clean Coal Technologies, Inc. (CCTI) in Brief
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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 fuelHowever: CTTI’s process is an ideal front-end technology; synergistic with gasification stage of Fischer-Tropsch
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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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
Differentiators of Commercial ProcessesData 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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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
Powerful Benefits for Coal and Power ProducersPristine™ :
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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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
Results – Pittsburgh Research Facility
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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.AAA
Results – Pittsburgh Research Facility
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CCTI Product Test Results
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CLEAN COAL TECHNOLOGIES, INC.AAA
Liquid Chemical AnalysisThe 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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“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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Economics of CCTI Process - Pristine™
Plant Parameters Coal Characteristics
Throughput Capacity, Tons/yr. 2,112,253 Feed Coal Pristine™
Number of Modules 13 Moisture 27.0% 3.02%
Estimated Plant Cost, $mm $260.00 Volatiles 30.1% 15.21%
Nominal Plant Capacity, Tons/yr 1,000,000 Kcal./Kg. 4261 5761
Running Capacity 961,644 Btu/lb. 7668 10368
Pristine Output 961,644 Price Benchmarks, FOB $62.00 $113.00
Commercial Tonnage, incl CDLs 1,509,656
CDLs Production, tons 3,868,965 CDL Price per Barrel $35.00
Capital Structure (Millions) Financial Benefits Year 1
Senior Debt $52.00 Gross Upgrade Benefit per Ton $51.00
Equity $208.00 CDL Revenues per Ton Pristine $143.37
Total $260.00 Net Benefit per Ton Pristine $76.61
Returns Analysis
Year 10
Revenues $279.95
- Pristine $108.42
- CDLs $171.53
EBITDA $170.93
ROI, after int. expense 38.8%
Investment Payback, years 2.84
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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Economics of Pristine-M™ (Dry Coal)Moisture Substitution Process
Plant Parameters Coal Characteristics
Throughput Capacity, Tons/yr. 1,484,865 Feed Coal Pristine-M™
Number of Modules 5 Moisture 27.0% 3.00%
Estimated Plant Cost, $mm $50.00 Volatiles 30.0% 40.46%
Nominal Plant Capacity, Tons/yr 1,000,000 Kcal./Kg. 4261 6914
Running Capacity 961,644 Btu/lb. 7668 12441
Pristine Output 961,644 Price Benchmarks, FOB $62.00 $130.00
Commercial Tonnage, incl CDLs Not Applicable
CDLs Production, tons 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 $40.00 CDL Revenues per Ton Pristine $0.00
Total $50.00 Net Benefit per Ton Pristine $20.36
Returns Analysis
Year 10
Revenues $129.12
- Pristine $129.12
- CDLs $0.00
EBITDA $50.47
ROI, after int. expense 49.7%
Investment Payback, years 2.20
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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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Summary
“Pristine” Promise
CLEAN COAL TECHNOLOGIES, INC.AAA
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INVESTOR RELATIONS:
Richard Cooper, [email protected]
Jennifer K. Zimmons, Ph.D., Managing [email protected]
410 Park Avenue- 4th FloorNew York, NY 10022
Phone: 212-317-1400/ Fax: 212-317-1184
CORPORATE:
Robin T. Eves, Chief Executive [email protected]
Ignacio Ponce de Leon, Chief Operating [email protected]
NYC HQ: 295 Madison Avenue (12th Floor)New York, NY 10017
Tel: 646-710-3549FL OFFICE: 12518 West Atlantic Boulevard
Coral Springs, FL 33071Phone: 954-344-2727/ Fax: 954-757-1765
Contact Information