A NEW APPROACH TO COAL ENERGY EXTRACTION

Transcription

1 A NEW APPROACH TO COAL ENERGY EXTRACTION Presented by Antony Loane, CEO 6 th UCGA Conference on Underground Coal Gasification London, 24 th March 2011

2 Company Strategy Focus: Clean Energy Production Hungarian gas project Asset Selection Criteria : Coal stranded (political, geographic, etc) Gas price high Close to large, stable Market Staged Development Prioritise economic gas production Gas production funds GTL Technology: Improve Yield / Reduce Costs Views of Budapest & Company Headquarters

3 Company Overview Great Assets 1 Bt coal resource target Close to large market Diverse mineralogy Coal politically stranded High gas price Highly Experienced Management Team Established & grown numerous energy & resource companies Well established in Hungary (> 6 yrs) Technology Up-side 2 clean energy technologies Patented, assessed Synclean Team, Site Visit, Southern Hungary

4 Project Strategy Primary Business Model Apply standard technology Alternative Business Model Apply E-UCG if performance meets expectations Key Value Triggers Verify asset Industrial partner Demonstrate technology Bankable Feasibility Study Phased development Coal Seams Running into One of Synclean s Permits, Southern Hungary

5 Technical Management Antony Loane, CEO (BEng Chem) Oil, Gas, Energy Technology / Inventor Micro-GTL Engineering, Construction, Proj Management, Economics Kieran Flockton, Drilling / Reservoir Engineering (BSc Mech Eng) Established White Coal Energy / Wildhorse Energy + 7 Others UCG, Coal, Oil, Gas, Mining / Inventor E-UCG Ian Porter, Business Development (BSc Mech Eng) Business development & commerce Oil, Gas, Energy Technology (incl Micro-GTL) Liam Flockton, Facilities & Operations (BSc Elec Eng) Former MD White Coal Energy UCG, Coal, Gold, Alternative Energy, Biofuels

6 Proportion of Total Energy Consumption (%) Hungary - Ideal for UCG Located on the energy supply freeway to Europe Large coal reserves / phase out conventional coal mining 0% Wleehead Royalty on UCG (Brown Coal) Attractive Government policies (energy, environmental) Net importer of energy (and increasing over time) Hungary s Natural Gas Production vs Consumption European Dependence on Natural Gas in the Fuel Demand Mix Sweden Finland Greece Portugal Denmark Ireland Slovenia Austria Poland Spain France Czech Republic Germany Romania Slovak Republic Belgium Italy United Kingdom Netherlands Hungary

7 Hungary Energy Infrastructure Hungary s Natural Gas Pipeline Network Hungary s Electrical Power Infrastructure

8 Hungary Transport Infrastructure Hungary s Roads, Railways, Airports, & Rivers

9 Project Overview - Hungary 5 coal permits with large exploration targets (approx. 1 Bt) Large body of existing data (1,600 wells on 1 permit alone) Exclusive exploration / development rights Coal mineralisation ideal for UCG + CBM Proximal to market (pipelines, power stations) Proximal to infrastructure (roads, rail, etc) 1st & 2nd Permits, Veszprem Bakony North 3rd & 4th & 5th Permits, Mecsek Mountains Permit Locators Not to Scale Synclean Energy

10 Project Stages to 1 st Gas Active development programme Optimum commercial gas production within five years Stable, recurring, long-lasting revenues CPR, PSA / JV Pilot Plant Test Burn Feasibility Study Prod n Plant 1 st Gas 6-12 mths 1 year 2 years 3 years 3 5 years

11 Standard UCG Underground Coal Gasification Injection of Oxygen & high pressure steam into the coal to sustain combustion to produce Syngas (H 2 & CO) and CO2. Power Station GTL Plant UCG Topsides (Oxygen Plant, Steam Plant, Gas Conditioning, Compression, Cooling, etc) Injection Well (Oxygen, High Pressure Steam) Reactor (Coal Panel) Production Well (Syngas, CO2)

12 COMPLEXITY / COST (Safety/ Cost /Time to 1 st Prod n /Env Impact) E-UCG - The Advantages COMPLEX Enhanced Underground Coal Gasification UCG Weighted by low prod value, Net energy yield/efficiency, facilities complexity Mining Weighted by environmental & safety SCG Weighted by low prod value, safety of mining CBM Lengthy time to 1st gas, lowest simplicity is a plus E-UCG Low carbon footprint, High energy recovery & product value, short time to 1st gas, simple facilities. SIMPLE LOW VALUE PRODUCT VALUE / ENERGY RECOVERY (Product Stream Value / Net Energy Recovery From Coal) HIGH VALUE

13 Micro-GTL vs Current Tech Micro Gas to Liquids Small scale conversion of syngas (H2 & CO) to high quality liquid petroleum products e.g. sulfur free diesel, jet fuel, naphtha, etc. Smaller, Cheaper, More Efficient Reactor Utilities Power Syngas Eliminated Gas Processing Specialty Gases (e.g. H 2, N 2, CO) Syngas from UCG Feed Prep / Shift F-T Synthesis Liquid Upgrading Diesel, Naphtha Water Processing Water

14 Micro-GTL The Advantages Reduced entry level into massive Transport Fuels Market Smaller, cheaper reactors Scalable Expert assessment a very interesting option which could highly improve the [classical] process [and is a] promising economic alternative to current GTL processes (Head of Chemical Engineering; High Profile European Research University) Provisional Australian Patent App Australian Government R&D Grant (CLR-05160)

15 Summary Synclean s New Approach to Coal Energy Extraction: Synclean s project selection criteria Synclean s business models Synclean s technologies

16 Contact Details Synclean Energy Plc Antony Loane (UK) +44 (0) (Hungary) (Aus) +61 (0) Old Park Lane Capital Plc Michael Parnes (UK) + 44 (0) mp@oldplc.com Kieran Flockton (UK) +44 (0) (Hungary) (Aus) +61 (0) kflockton@syncleanenergy.com Pursuit Capital Pty Ltd Olly Cairns (Aus) + 61 (0) ocairns@pursuitcapital.com.au Tavistock Communications Paul Youens (UK) + 44 (0) pyouens@tavistock.co.uk