Corporate Presentation

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Corporate Presentation
August 2014
Forward-Looking Statements
Statements in this presentation and of the management or representatives of Clean Coal Technologies Inc.
(the “Company”) in connection therewith that relate to beliefs, plans, objectives, goals, expectations,
anticipations, intentions and future financial condition, results of operations or business performance constitute
“forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s
current expectations about future events. These statements can be identified by the fact that they do not
relate strictly to historical or current facts, and by words such as “may,” “could,” “should,” “would,” “believe,”
“expect,” “project,” “anticipate,” “estimate,” “intend,” “plan” or other similar words or expressions.
Any or all of the forward-looking statements in this presentation or made by management during this
presentation may turn out to be in accurate or wrong. This can occur as a result of inaccurate assumptions or
as a consequence of significant known or unknown risks and uncertainties. The Company addresses these
risks in the “Risk Factors” section of its filings with the SEC. Because of these risks and uncertainties, the
Company’s actual results may differ materially from those that might be anticipated from its forward-looking
statements. Therefore, you are cautioned not to place undue reliance on such forward-looking statements.
The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required by applicable law.
Profile
Clean Coal Technologies, Inc.
Stock Symbol:
CCTC
Exchange:
OTCQB
Recent Price:
$0.24 (8.11.14)
52-Week Range:
$0.23 to $1.75
Avg. Volume (3M):
42,000
Shares Authorized:
44 million
Shares Outstanding:
26.2 million
Market Cap:
$6.3 million (8.11.14)
Industry:
Clean Energy
Headquarters:
New York, NY
Public Since:
September 2007
Clean Coal Technology
Patented and Pat. Pending processes to
remove moisture and volatile materials
from Coal.
Our technology has three distinct primary
applications:
 The cleaning of coal for direct use as
fuel.
 The extraction of chemical by-products
for commercial sale.
 The use of processed coal as a
feedstock for gasification and
liquefaction and coal-to-liquid (CTL)
projects.
 In addition, we are able to produce
several fuel and non-fuel products
beyond an improved steam coal.
The Company
• New management team since August 2010
–
Introduced 2 new processes (patent pending) to complement existing patented clean
coal process
–
Secured funding to complete Pristine-M prototype plant
–
Prototype to be hosted by AES Corporation at Shady Point (Oklahoma) power plant
–
Successful positioning of business for commercialization in 2014/15
–
•
Signed 25-year Technology License with Jindal Steel & Power
•
Building strong pipeline of new business with powerful players in global energy
Identified partnership opportunities with companies that can add significant value in
global roll out
• Solid Company Fundamentals
–
Best of breed technology
–
Pilot plant to be commissioned in Q2/Q3 2014
–
Highly favorable competitive landscape; ability to capture “first-mover” advantage
–
World class project execution: SAIC EPC partnership
Macro Picture: A Strong Tailwind
Rapid growth outside the OECD is driving unprecedented growth
in coal consumption
– Between 2000 and 2013, global coal consumption rose by 59% from 5.3 billion to 8.4
billion tons per annum.
– In 2013, coal represented about 29% global energy mix; expected to rise to 31%,
replacing oil, by 2020, according to the IEA (International Energy Agency).
– For power generation, coal accounts for > 40% of the fuel mix. In some regions,
notably Asia, coal’s share is a high as 60%.
– Non-hydro renewable energy is likely to remain a small fraction of total supply for at
least a generation
– Natural gas is cheap in the U.S., but likely to rise significantly. Outside the U.S. natural
gas is 2x to 4x the price of natural gas in the U.S.
– Nuclear power is unpopular given safety and waste disposal concerns
– Coal remains one of the most inexpensive and abundantly available fuel sources. On
a cost per Btu basis, oil costs 2x to 3x more than coal.
base
It is not possible to eliminate coal from the power grid in
any major economy owing to the need for secure/reliable
load power. Coal can be stockpiled.
Sustainability is Not Optional
Accelerated Consumption has brought to the fore the
industry’s key technology priorities: “clean” coal and dry
coal
– Pollution from unfiltered coal emissions has reached epidemic proportions in areas
of the world where environmental controls are lax or when emissions scrubbers
cannot be afforded by the power companies.
– Also, increased coal consumption has resulted in a growing presence of low-rank
coals (LRC), i.e., high-moisture coals, in the mix of commercial coal
– High moisture coals represent a dead loss from a transportation perspective and
are highly inefficient, i.e., they degrade industrial boilers and result in greater coal
consumption for a given power generation requirement.
– China has recently announced its intention to ban the import of low rank coals.
– The market for upgraded coal is, potentially, in the billions of tons.
– The future of coal as a sustainable fuel depends critically on upgrade technologies.
Coal and the Environment
Coal is burned without beneficiation
a)
Unlike crude oil that is intensively refined before it is consumed as fuel or
chemical feedstock, coal is burned raw, as it comes out of the ground.
b)
Industrial boilers do not require many of the compounds found in coal;
these are valuable chemicals for various industries.
Problems Associated with Post-Combustion Solutions
a)
Consumption of raw coal imposes the burden of clean emissions on
industries that use coal-fired boilers, most notably, the power industry.
b)
Scrubbing emissions to meet environmental standards is hugely expensive
c)
Furthermore, emissions scrubbers require significant on-going maintenance
and produce coal ash that contains unwanted compounds
d)
Disposal of coal ash into toxic waste dumps does not eliminate
environmental risk
Coal should be treated before it is burned (pre-combustion)
Pre-Combustion Solutions
Pre-Combustion Solutions
a)
Devolatizing of coal to remove unwanted compounds results in a fuel that
burns clean, free of most pollutants. Coal ash from boilers does not
contain unwanted chemical compounds.
b)
CCTI’s pre-combustion solution is preferable because the process
condenses volatile gases into liquid hydrocarbon byproducts that may add
significantly to revenue. Process is cash flow additive.
Dehydration Solutions
a)
Very few efforts to develop a viable dehydration technology have
succeeded. CCTI has a unique approach (Vapor Phase Deposition) that
is simple and cost-effective. SAIC has completed the engineering; pilot
test plant to launch in Q2 2014.
The Pristine™ Processes
1. Original Pristine™ “clean coal” process removes volatiles and
moisture; produces valuable liquid byproducts; highly
synergistic with CTG and CTL
2. New Pristine-M™ process removes moisture and produces a
stable end
product that does not re-absorb moisture
and minimizes risk of spontaneous
combustion
3. New Pristine-SA™ process removes 100% of the volatile
matter and comes with a solution for ensuring a stable burn in
conventional boilers.
Major Differentiators:
a)
Raw material shows little degradation through the process.
Pulverization and briquetting avoided.
b)
Processes are adaptable to several applications, both fuel and non-fuel,
and work on biomass (e.g., wood chips)
c)
Stable end product
Unique Industrial Design
• CCTI Processing Units are Modular
–
Scale up risk is minimized (CCTI scale-up factor only 1:15). Required
capacity is reached by addition od identical modules.
–
Mechanical failure or maintenance only decommissions a single
module, not the entire plant.
–
Plant expansions can be made in affordable increments, avoiding
significant excess capacity initially.
• Exceptional Plant Economics
–
Plant uses standard industrial components, many off-the-shelf.
Competitive plant cost.
–
Capturing volatiles and recycling coal fines for process heat results in
an “energy neutral” design
–
No need for pelletizing or briquetting results in opex about 50% below
competitors
–
Pristine-M™ plant investment is recovered in under 3 years with
unlevered ROE in excess of 25%
Strategic Partnerships
• Science Applications International
Corporation (SAIC)
–
15 year contract designates SAIC as preferred EPC
contractor
• Ventrillion Management Co. (Singapore)
–
Agreement for up to a $15 million investment in Clean Coal
Technologies, Inc. $4.4 million paid in.
–
Affiliated with powerful coal players in Indonesia
• Jindal Steel & Power Ltd
•
Signed a 25 year Pristine-M™ Technology License Agreement
• AES Shady Point, Le Flore County, Oklahoma
•
Prototype Pristine-M plant being hosted through test phase
Compelling Plant Economics
Valuation Scenarios - CCTI
Competitor Landscape
Investment Summary
CCTI is well-positioned to commercialize technology & create
shareholder value:
–
Risk/reward profile is exceptional
–
Best of breed technology in today’s competitive landscape
–
World class technology partnership- high quality project execution
–
Competitive plant design: module-based
–
Manageable entry price: the cost of a single commercial module less than $18 million
–
Compelling economics; opportunity to capture value at various points along the value
chain
–
Clearly identified business opportunities for global rollout
–
Enormous market opportunity globally
CCTI is ideally positioned to address today’s need for an affordable,
premium coal
Projected Technology Roll Out
Pre 2013
Q3 2014
• Science and technology of coal drying and upgrading
• Earlier processes, address challenges, test >100 coals on test rig
• Complete construction of larger (2MT/hr ) – 1:15 scale prototype facility
• Testing & optimization tests at an AES coal-fired power plant in Oklahoma
• Commission commercial 30 MT/hr. unit.
• Jindal Steel & Power first commercial client
Q4 2014
• Contract large-scale commercial unit processing 1 million MT/yr with multiple clients
2015
Management Team & Directors
Robin Eves - Director, President & CEO
– Expert in energy and energy trading, skilled at extracting value throughout the energy value chain.
– Held senior management positions in London, Paris, Geneva and New York, at major international
firms such as Cargill and UBS.
– 30 years global business experience in the U.S., Europe, Russia, the Middle East, Africa, South
America, India and Asia.
Ignacio Ponce de Leon – Director & Chief Operating Officer
•
25 years Wall Street experience in senior roles JP Morgan, CS First Boston, Bankers Trust
•
National Planning Department- Colombia, Division Chief, Assisted in early-stage development of
Cerrejon, one the largest coal mines in the world.
•
Formed industry-leading global research team at JP Morgan; won top rankings in Institutional Investor
“All-America” rankings and Euromoney’s Latin Finance “Research Olympics”
•
Six years M & A experience
•
Graduated from the London School of Economics (BSc. Econ.) and from the Fletcher School of Law &
Diplomacy, M.A.L.D. (Tufts-Harvard)
Management Team & Directors
Aiden Neary- Chief Financial Officer (CFO)
•
15 years senior management positions (ING, Shroeders Bank and UBS) with global business
experience in the U.S., Europe, and Asia
•
Former Managing Director at UBS (Stamford) and COO of their Global Commodity business
•
Aiden has a degree in Accounting and Law from Kingston University in London, and is a Chartered
Management Accountant.
Dr. Edward Jennings –Chairman of the Board and Independent Director
•
Former President of the University of Wyoming and Ohio State University
•
Extensive experience on various trade missions in the Far East, Europe, and Africa for companies and
governmental agencies
•
MBA and PhD in Finance from the University of Michigan
Management Team & Directors (cont.)
Dr. Scott Younger, OBE – Independent Director
•
Infrastructure development expert, adviser and academic with 35 years’ experience in South
and South East Asia. Involved with major infrastructure projects across 10 Asian countries.
•
Chairman of Strategic Intelligence from 1998-2001, and for the past decade co-Chair of the
Indonesian branch of D Group, an influential London-based business networking company
•
Current senior Vice Chairman of the International Business Chamber, which he joined in
2003. Former secretary of the ASEAN-EU Business Dialogue
•
Independent Commissioner of PT Nusantara Infrastructure Tbk, a publicly listed company
invested in Indonesian toll roads and ports; President Commissioner of Glendale Partners,
project development and advisory services.
•
Bsc., Universtity of Glasgow; MS, UC Berkeley, PhD, University of Hong Kong. Awarded
OBE (Order of British Empire) in 2003.
Al Knapp – Board Advisor
•
Senior executive in The Industrial Company (TIC) for 25 years (now Kiewit).
•
Worked with major US utilities and Fortune-100 corporations.
•
Served as Project Manager for the former Pittsburgh and Midway Coal Mining Company
(P&M)
Thank You
Corporate Contact:
Investor Relations:
Robin Eves, CEO
Clean Coal Technologies, Inc.
295 Madison Avenue, 12th Fl.
New York, NY
Telephone: 646.710.3549
Scott Arnold
Senior Managing Director
CorProminence LLC
377 Oak Street
Garden City, NY 11530
Telephone: 516 222 2560
scotta@corprominence.com
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