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| 8-K - FORM 8-K DATED JUNE 20, 2011 - EVERGREEN ENERGY INC | f8k_062011i701.htm |
Exhibit 99.1
Investor Presentation
Investor Presentation
June 2011
June 2011
www.evgenergy.com
www.evgenergy.com
Safe Harbor Statement
2
Statements in this presentation that relate to future plans or projected results of Evergreen
Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the
"PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA,
and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual
results may vary materially from those described in any "forward-looking statement" due to,
among other possible reasons, the realization of any one or more of the risk factors described
in our annual or quarterly reports, or in any of our other filings with the Securities and
Exchange Commission. Readers of this presentation are encouraged to study all of our filings
with the Securities and Exchange Commission. Our ability to execute our business plan and
develop the K-Fuel® or GreenCert™ technologies, and the successful development and
operation of the SCH venture may be adversely impacted by unfavorable decisions in pending
litigation, the inability to raise sufficient additional capital in a timely manner to pursue the
development of the technology or the development and operation of the SCH venture,
unsuccessful exploratory activities with respect to the identified SCH coal deposits, the
inability to successfully apply the K-Fuel technology to SCH’s coal deposits, the inability of
SCH to obtain regulatory approval for its activities, and/or adverse conditions for the
marketing and sale of upgraded coal. Readers of this presentation are cautioned not to put
undue reliance on forward-looking statements.
Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the
"PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA,
and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual
results may vary materially from those described in any "forward-looking statement" due to,
among other possible reasons, the realization of any one or more of the risk factors described
in our annual or quarterly reports, or in any of our other filings with the Securities and
Exchange Commission. Readers of this presentation are encouraged to study all of our filings
with the Securities and Exchange Commission. Our ability to execute our business plan and
develop the K-Fuel® or GreenCert™ technologies, and the successful development and
operation of the SCH venture may be adversely impacted by unfavorable decisions in pending
litigation, the inability to raise sufficient additional capital in a timely manner to pursue the
development of the technology or the development and operation of the SCH venture,
unsuccessful exploratory activities with respect to the identified SCH coal deposits, the
inability to successfully apply the K-Fuel technology to SCH’s coal deposits, the inability of
SCH to obtain regulatory approval for its activities, and/or adverse conditions for the
marketing and sale of upgraded coal. Readers of this presentation are cautioned not to put
undue reliance on forward-looking statements.
Statements in this presentation that relate to future plans or projected results of Evergreen
Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the
"PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA,
and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual
results may vary materially from those described in any "forward-looking statement" due to,
among other possible reasons, the realization of any one or more of the risk factors described
in our annual or quarterly reports, or in any of our other filings with the Securities and
Exchange Commission. Readers of this presentation are encouraged to study all of our filings
with the Securities and Exchange Commission. Our ability to execute our business plan and
develop the K-Fuel® or GreenCert™ technologies, and the successful development and
operation of the SCH venture may be adversely impacted by unfavorable decisions in pending
litigation, the inability to raise sufficient additional capital in a timely manner to pursue the
development of the technology or the development and operation of the SCH venture,
unsuccessful exploratory activities with respect to the identified SCH coal deposits, the
inability to successfully apply the K-Fuel technology to SCH’s coal deposits, the inability of
SCH to obtain regulatory approval for its activities, and/or adverse conditions for the
marketing and sale of upgraded coal. Readers of this presentation are cautioned not to put
undue reliance on forward-looking statements.
Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the
"PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA,
and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual
results may vary materially from those described in any "forward-looking statement" due to,
among other possible reasons, the realization of any one or more of the risk factors described
in our annual or quarterly reports, or in any of our other filings with the Securities and
Exchange Commission. Readers of this presentation are encouraged to study all of our filings
with the Securities and Exchange Commission. Our ability to execute our business plan and
develop the K-Fuel® or GreenCert™ technologies, and the successful development and
operation of the SCH venture may be adversely impacted by unfavorable decisions in pending
litigation, the inability to raise sufficient additional capital in a timely manner to pursue the
development of the technology or the development and operation of the SCH venture,
unsuccessful exploratory activities with respect to the identified SCH coal deposits, the
inability to successfully apply the K-Fuel technology to SCH’s coal deposits, the inability of
SCH to obtain regulatory approval for its activities, and/or adverse conditions for the
marketing and sale of upgraded coal. Readers of this presentation are cautioned not to put
undue reliance on forward-looking statements.
Introduction
Introduction
Formed in 1984 and headquartered in Denver, CO, Evergreen Energy Inc.
is the leading innovator in coal upgrading technology.
is the leading innovator in coal upgrading technology.
Formed in 1984 and headquartered in Denver, CO, Evergreen Energy Inc.
is the leading innovator in coal upgrading technology.
is the leading innovator in coal upgrading technology.
Evergreen’s proprietary K-Fuel® process is engineered to upgrade the
world’s abundant reserves of lignite and sub-bituminous coals using heat
and pressure, thus transforming the low quality feedstocks into a solid fuel
with higher heating value (Btu/lb or Kcal/kg) while reducing emissions.
world’s abundant reserves of lignite and sub-bituminous coals using heat
and pressure, thus transforming the low quality feedstocks into a solid fuel
with higher heating value (Btu/lb or Kcal/kg) while reducing emissions.
Evergreen’s proprietary K-Fuel® process is engineered to upgrade the
world’s abundant reserves of lignite and sub-bituminous coals using heat
and pressure, thus transforming the low quality feedstocks into a solid fuel
with higher heating value (Btu/lb or Kcal/kg) while reducing emissions.
world’s abundant reserves of lignite and sub-bituminous coals using heat
and pressure, thus transforming the low quality feedstocks into a solid fuel
with higher heating value (Btu/lb or Kcal/kg) while reducing emissions.
3
Introduction Continued
Introduction Continued
Evergreen and Australia based WPG Resources recently formed a joint
venture with WPG Resources named Southern Coal Holdings (SCH), which
will be based in Australia and will provide Evergreen with the necessary
coal resources to support one or more 1 million ton per year (mtpy) K-
Fuel® plants with a maximum K-Fuel® production cap at 15 mtpy.
venture with WPG Resources named Southern Coal Holdings (SCH), which
will be based in Australia and will provide Evergreen with the necessary
coal resources to support one or more 1 million ton per year (mtpy) K-
Fuel® plants with a maximum K-Fuel® production cap at 15 mtpy.
Evergreen and Australia based WPG Resources recently formed a joint
venture with WPG Resources named Southern Coal Holdings (SCH), which
will be based in Australia and will provide Evergreen with the necessary
coal resources to support one or more 1 million ton per year (mtpy) K-
Fuel® plants with a maximum K-Fuel® production cap at 15 mtpy.
venture with WPG Resources named Southern Coal Holdings (SCH), which
will be based in Australia and will provide Evergreen with the necessary
coal resources to support one or more 1 million ton per year (mtpy) K-
Fuel® plants with a maximum K-Fuel® production cap at 15 mtpy.
As global coal consumption is expected to increase by 1.6% per year on
average for the next 25 years1, the Chairman & CEO of Peabody Energy,
Gregory Boyce, recently said: “We’re in a super cycle for coal in the globe
today. We think that’s going to [last] for two, three or four decades.”
average for the next 25 years1, the Chairman & CEO of Peabody Energy,
Gregory Boyce, recently said: “We’re in a super cycle for coal in the globe
today. We think that’s going to [last] for two, three or four decades.”
As global coal consumption is expected to increase by 1.6% per year on
average for the next 25 years1, the Chairman & CEO of Peabody Energy,
Gregory Boyce, recently said: “We’re in a super cycle for coal in the globe
today. We think that’s going to [last] for two, three or four decades.”
average for the next 25 years1, the Chairman & CEO of Peabody Energy,
Gregory Boyce, recently said: “We’re in a super cycle for coal in the globe
today. We think that’s going to [last] for two, three or four decades.”
Click Link Below to view CNBC Interview with Gregory Boyce
Click Link Below to view CNBC Interview with Gregory Boyce
http://www.executiveinterviews.net/players/mini/default.asp?order=U13895
http://www.executiveinterviews.net/players/mini/default.asp?order=U13895
For Evergreen and its partners, the timing and future has never been so
bright.
bright.
For Evergreen and its partners, the timing and future has never been so
bright.
bright.
1 EIA international Energy Outlook 2010
1 EIA international Energy Outlook 2010
4
International Operations
K-Fuel®
Engineering,
NA Marketing
(Denver, CO)
Technology
Center
(Gillette, WY)
London Office
Asia Pacific
Marketing
(Singapore)
Southern Coal
Holdings Pty Ltd
Australia
(50% interest)
Evergreen-China
Energy Technology,
Co. Ltd.
(30% interest)
USA Operations
5
K-Fuel® Process
K-Fuel® Process
6
K-Fuel® Business Summary
§ K-Fuel® is a patented coal technology that upgrades low value sub-bituminous, lignite and brown
coals to high ranking thermal coal quality. For example, PRB sub-bituminous coal from 8,000-
8,800 BTU/lb upgrading to 10,200-10,800 Btu/lb or Australian lignite from ~6,500 Btu/lb to 10,200
Btu/lb or ~3,600 kcal/kg to ~5,700 kcal/kg.
coals to high ranking thermal coal quality. For example, PRB sub-bituminous coal from 8,000-
8,800 BTU/lb upgrading to 10,200-10,800 Btu/lb or Australian lignite from ~6,500 Btu/lb to 10,200
Btu/lb or ~3,600 kcal/kg to ~5,700 kcal/kg.
§ The proven technology creates a large market for the massive low-rank, low heating value coal
resources that exist globally, some of which have not been economical to mine. Through the
K-Fuel® process, this coal becomes an economic and saleable product available to power
plants.
resources that exist globally, some of which have not been economical to mine. Through the
K-Fuel® process, this coal becomes an economic and saleable product available to power
plants.
§ Evergreen is acquiring the resources and has established the timeline for moving into full
commercial production to realize value from the deployment of the K-Fuel® process to upgrade
low-ranked quality coal reserves, including Powder River Basin sub-bituminous coals.
commercial production to realize value from the deployment of the K-Fuel® process to upgrade
low-ranked quality coal reserves, including Powder River Basin sub-bituminous coals.
§ Recent financial and corporate developments enable management to refocus on building the
company and further technological refinement.
company and further technological refinement.
§ New management has the experience, direction and resources available to commercialize K-
Fuel® around the globe.
Fuel® around the globe.
7
Evergreen Energy’s K-Fuel® is a proven coal upgrading process that is market-
ready and can be deployed in a large and addressable, growing global market
ready and can be deployed in a large and addressable, growing global market
§ Coal upgrading technologies are becoming increasingly
relevant as the supply of low moisture high rank thermal
coals are in decline in North America and Asia.
relevant as the supply of low moisture high rank thermal
coals are in decline in North America and Asia.
§ Approximately 465 billion tons of coal or 47% of world’s
reserves are sub-bituminous, lignite and brown coals,
which are of limited use without being upgraded. The K-
Fuel® process of upgrading low value coal allows EEE to
take advantage of the significant price arbitrage
opportunity.
reserves are sub-bituminous, lignite and brown coals,
which are of limited use without being upgraded. The K-
Fuel® process of upgrading low value coal allows EEE to
take advantage of the significant price arbitrage
opportunity.
§ Given the vast amount of sub-bituminous resources in
these key markets, EEE has only begun to capitalize on
commercialization of its technology. This translates to a
massive potential upside from a full commercial roll-out.
these key markets, EEE has only begun to capitalize on
commercialization of its technology. This translates to a
massive potential upside from a full commercial roll-out.
§ Global demand for thermal coal is driven by a major new
global build out of coal generation capacity. This
phenomenon is not restricted to Asia.
global build out of coal generation capacity. This
phenomenon is not restricted to Asia.
8
Value Proposition - The Global Opportunity
Source: Peabody
Value Proposition - The Economic Opportunity
§ K-Fuel® upgrades low rank coal reserves
and helps take advantage of the price
spread that exists between low rank and
high rank coal prices.
and helps take advantage of the price
spread that exists between low rank and
high rank coal prices.
§ An installed production capacity of just
5MMtpa could yield an approximate EBITDA
over $190 million - an extremely compelling
value proposition.
5MMtpa could yield an approximate EBITDA
over $190 million - an extremely compelling
value proposition.
|
Value Increase per metric ton (tonne) of upgraded coal
sensitivity table (i) |
|||
|
Selling value of
Upgraded Coal |
Value increase/tonne at cost of
|
||
|
$10.00
|
$12.00
|
$14.00
|
|
|
US$50
|
$22.00
|
$18.80
|
$15.70
|
|
US$60
|
$32.00
|
$28.80
|
$25.70
|
|
US$70
|
$42.00
|
$38.80
|
$35.70
|
|
US$80
|
$52.00
|
$48.80
|
$45.70
|
|
US$90
|
$62.00
|
$58.80
|
$55.70
|
9
(i). Based on the hypothetical K-Fuel® forecast for Indonesian Coal
Source: Bloomberg
K-Fuel® Process
§ The K-Fuel® process was developed at
Stanford Research Institute by Edward
Koppelman. Over the last 20+ years, extensive
research and development, together with pilot
and commercial scale facility design,
construction and operation have resulted in a
robust and validated technological process.
Stanford Research Institute by Edward
Koppelman. Over the last 20+ years, extensive
research and development, together with pilot
and commercial scale facility design,
construction and operation have resulted in a
robust and validated technological process.
§ The patented process involves the heating and
pressurization of low value coals, the
irreversible removal of the water content, and
converting the product into a higher energy
K-Fuel® product.
pressurization of low value coals, the
irreversible removal of the water content, and
converting the product into a higher energy
K-Fuel® product.
§ A 750,000 tpa K-Fuel® commercial plant and
testing labs in Gillette Wyoming processed and
tested over 60 low rank coal feed stocks and
demonstrated substantial heat value increases.
testing labs in Gillette Wyoming processed and
tested over 60 low rank coal feed stocks and
demonstrated substantial heat value increases.
§ Coal feed stocks were tested and upgraded
from dozens of sources, including coals from
Inner Mongolia, Indonesia, Russia and the US.
from dozens of sources, including coals from
Inner Mongolia, Indonesia, Russia and the US.
§ Test burns of K-Fuel® at multiple US power
generation facilities validate combustion
benefits.
generation facilities validate combustion
benefits.
10
Schematic Overview of the K-Fuel® Process
Southern Coal Holdings
Southern Coal Holdings
Evergreen Energy’s Strategic Joint Venture
with WPG Resources
with WPG Resources
Evergreen Energy’s Strategic Joint Venture
with WPG Resources
with WPG Resources
11
Southern Coal Holdings Structure
12
Southern Coal Holdings
Southern Coal Holdings
Incorporated in Australia
Incorporated in Australia
50%
50%
50%
50%
§ NYSE Arca under symbol: EEE
§ NYSE Arca under symbol: EEE
§ Shares outstanding: 25,701,845
§ Shares outstanding: 25,701,845
§ Share Price June 10 - $1.96
§ Share Price June 10 - $1.96
§ Market Cap: $50,375,616
§ Market Cap: $50,375,616
§ 52 Week Range: $0.52 - $4.98
§ 52 Week Range: $0.52 - $4.98
§ ASX Listed: WPG
§ ASX Listed: WPG
§ Shares outstanding: 268,500,000
§ Shares outstanding: 268,500,000
§ Share Price June 10 - $0.76
§ Share Price June 10 - $0.76
§ Market Cap: $204,060,000
§ Market Cap: $204,060,000
§ 52 Week Range: $0.50 - $1.06
§ 52 Week Range: $0.50 - $1.06
§ On June 9, 2011, Evergreen and WPG announced the completion of
the venture known as Southern Coal Holdings (SCH), which is
equally owned by WPG and Evergreen.
the venture known as Southern Coal Holdings (SCH), which is
equally owned by WPG and Evergreen.
§ SCH owns coal resources in South Australia, the most important of
which are Penrhyn (sub-bituminous), and Lochiel North (lignite). SCH
is the exclusive licensor of Evergreen’s coal upgrading technology in
Australia.
which are Penrhyn (sub-bituminous), and Lochiel North (lignite). SCH
is the exclusive licensor of Evergreen’s coal upgrading technology in
Australia.
§ SCH will use the K-Fuel® process to upgrade its low rank coal assets
for domestic and international markets.
for domestic and international markets.
§ SCH’s K-Fuel® license includes the right to identify and upgrade
other AU coal resources and is not limited to its current portfolio.
other AU coal resources and is not limited to its current portfolio.
13
Southern Coal Holdings:
A Strategic Joint Venture
A Strategic Joint Venture
Southern Coal Holdings:
A Strategic Joint Venture
A Strategic Joint Venture
Bob Duffin WPG Chairman - June 10, 2011
§ “WPG conducted extensive due diligence on the upgrading sector
prior to the selection of Evergreen’s K-fuel process.”
prior to the selection of Evergreen’s K-fuel process.”
§ “WPG has no doubt that the process works at both the laboratory
and production plant scale, and is capable of achieving a significant
increase in calorific value and reduction in greenhouse gasses when
applied to sub-bituminous and lignite coals such as those at SCH’s
Penrhyn and Lochiel North project areas”
and production plant scale, and is capable of achieving a significant
increase in calorific value and reduction in greenhouse gasses when
applied to sub-bituminous and lignite coals such as those at SCH’s
Penrhyn and Lochiel North project areas”
14
Ilyas Khan Chairman of EEE (left) and Bob Duffin Chairman of WPG
Ilyas Khan Chairman of EEE (left) and Bob Duffin Chairman of WPG
Sign Definitive Agreement in Denver, June 2011
Sign Definitive Agreement in Denver, June 2011
SCH Penrhyn and Lochiel North Coal Projects
15
Penrhyn Coal Project
Permian semi-bituminous coal in the Arckaringa Basin
Resource:
Sub-Bituminous Coal resource of 200 - 300 mt
Project Update:
• WPG is mid way through a drilling program aimed at
outlining 200 mt Inferred Coal Resource
outlining 200 mt Inferred Coal Resource
• Results to date are encouraging
Lochiel North Coal Project
Lignite coal Project in Northern St. Vincent Basin
Inferred Coal Resource
Lignite resource of approximately 270 mt
Project Update:
Penrhyn is viewed as domestic power station coal or export
coal after upgrading using clean coal technology provided
by Evergreen Energy
Lochiel North is viewed as domestic power station coal or
export coal after upgrading using clean coal technology
provided by Evergreen Energy
export coal after upgrading using clean coal technology
provided by Evergreen Energy
16
K-Fuel® is a value-added product
§ K-Fuel® upgrading technology processes low quality sub-bituminous coal resulting
in:
in:
§ Higher energy value - Demonstrated to increase the efficiency and heating value of
sub-bituminous, lignite and brown coals by 30% on average, accomplished by
decreasing equilibrium moisture content by 50%
sub-bituminous, lignite and brown coals by 30% on average, accomplished by
decreasing equilibrium moisture content by 50%
§ Higher economic value - Allows product to compete with bituminous coals and makes
low rank coal marketable
low rank coal marketable
§ Physically and chemically stable product - Handled/transported as the feed coal
§ Significantly reduced transport costs - Reduced moisture content can lead to lower
transportation costs
transportation costs
§ More environmentally friendly product - More efficient burning could lead to lower
carbon emissions, and in particular reduced Hg, SO2 and NOx
carbon emissions, and in particular reduced Hg, SO2 and NOx
§ The consequence is that a significantly large number of low quality, high moisture
coal deposits worldwide become economically viable and more environmentally
friendly
coal deposits worldwide become economically viable and more environmentally
friendly