revolutionising the production of bio-based products · revolutionising the production of bio-based...
Post on 16-Apr-2018
215 Views
Preview:
TRANSCRIPT
Leaf Energy Ltd Investor Briefing
March 2014
Revolutionising the production of bio-based products
For
per
sona
l use
onl
y
Forward Looking Statements
This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any
securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the
securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should
consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor.
Certain statements made in this presentation are forward-looking statements. These forward looking statements are not
historical facts but rather are based on Leaf Energy’s current expectations, estimates and projections about the industry in
which Leaf Energy operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans,"
"believes," "seeks,” "estimates,“ “guidance” and similar expressions are intended to identify forward-looking statements. and
should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those
risks or uncertainties inherent in the process of developing technology and in the endeavour of building a business around
such products and services. These statements are not guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors, some of which are beyond the control of Leaf Energy, are difficult to predict
and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Leaf
Energy cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements,
which reflect the view of Leaf Energy only as of the date of this presentation. The forward-looking statements made in this
presentation relate only to events as of the date on which the statements are made. Leaf Energy will not undertake any
obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or
unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory
authority.
For
per
sona
l use
onl
y
Leaf Energy’s GlycellTM Process Overview
The GlycellTM process breaks down waste plant material and produces
cellulose at any scale
Cellulose is a building block for
bio-based products
The bio-based market is growing
rapidly
Leaf Energy’s GlycellTM process’s
compelling advantages can
revolutionise bio-based markets For
per
sona
l use
onl
y
Cellulose The Future of Materials
* Lüder Gerking, CEO, Nonoval GmbH & Co.KG
Coal was the industrial material of the 19th century
Oil was the industrial material of the 20th century
Cellulose will be the industrial material of the 21st century* F
or p
erso
nal u
se o
nly
Leaf Energy’s Glycell™ Process Proprietary technology for cellulose production
Simple, innovative, low cost and effective
Uses a waste reagent
Low temperature and low pressure
Operates continuously
Renewable readily available resource
The Glycell ™ process has compelling advantages
Cellulose + Hemicellulose
Lignin
Economic benefits
Significantly lower capital costs
Significantly lower operating costs
Off the shelf equipment
Operates at any scale
Cellulose Hemi-cellulose
Lignin
Biomass before treatment After the Glycell™ Process
Outcome: Cellulose, hemicellulose and lignin are available to be converted to valuable bio-materials
For
per
sona
l use
onl
y
Environmental credentials Utilises waste biomass at low energy
Cellulose Strong,
lightweight, viscose and
versatile
Waste Biomass: a renewable source of
Cellulose
Avoids the food for fuel debate
Waste biodegradable
reagent
Low temperature means lower energy
use
Other process have environmental issues
(Pulp plant in Tasmania)
Environmental benefits
Carbon savings
The Glycell™ process can produce cellulose at any scale
For
per
sona
l use
onl
y
Cellulose The building block for bio-based products
Cellulose derivatives
• Industrial – drilling mud, paint, adhesives and ceramics
• Food
• Cosmetic
• Pharmaceutical
Bioplastics
• Fibre reinforce composites
• Polyurethanes
• Packaging
• Engineered Plastics
• Resins
• Nano-cellulose
• 3D printing
Green chemicals
• Pharmaceutical
• Agricultural
• Manufacturing
• Nutraceuticals
• Detergent
• Source of carbon molecules
Cellulose: has many new uses as well as traditional uses such as paper and fibre for fabrics
Drilling mud market predicted to grow to $15b by
2018 at CAGR of 7.5%1
Manufacture of bio-plastics is expected to rise by 140% to
9.2M tons by 20162
Green chemicals market expected to grow at 20% pa to exceed $500BN by 20173
Sources 1 Markets and Markets September 2013 2 Lux Research 2012 3 European Forum for Industrial Biotechnology
For
per
sona
l use
onl
y
Consumer sentiments feeding bio-based maket growth
41% of all respondents listed customer preferences for sustainable products and services as a sustainability-related reason for changing their business models”
MIT Sloan Management Review Research report, Winter 2012 3
“In virtually every industry consumer demand for greener, more natural products are fueling a surge of research into biological alternatives to replace oil-derived products”
Richard Herbert
Biofuels Digest, July 2013
“Its time for the world to shift! All companies face a direct impact from decreasing natural resources, rising populations and disruptions from climate change”
Mark Parker
CEO Nike
The high cost and environmental impact of burning finite resources has seen industry moving from the ‘black economy’ to the ‘green economy’
There is no need to debate “Peak Oil” or “Global Warming” as the consumers are voting with their wallets
For
per
sona
l use
onl
y
Technology Validation
IP developed with Syngenta and Queensland University of Technology
Articles in Biomass Magazine July 2013, February 2014
Expert Assessment by Dr. Graeme Bullock of Bio-industry Partners
“a compelling situation”
Leaf Energy’s Glycell™ process has been validated internally and by third parties
For
per
sona
l use
onl
y
Milestones & Development Where are we at?
Continuous processing at up to
5.4 tons per day (dry) using
industrial available equipment
Potential for the production of
cellulose
78% Alpha cellulose
Process now effective on
Bagasse, Eucalyptus, Spruce and Palm oil waste
(lab)
Potential for Cellulose
derivatives
Bio- based products via enzymatic
hydrolysisi confirmed
Recent trials at Andritz (USA) confirmed:
For
per
sona
l use
onl
y
Strategic Direction Capitalising on the development to date
Key proposition and competitive
advantage
“Produce low cost cellulose at any scale”
First product: CMC (Carboxymethyl
Cellulose)
Production from cellulose well known and understood
Applications for CMC
Initially for drilling mud applications, then look at food applications
Partnerships Will use partnerships for down stream
relationships and channel to market as well as for supply of biomass
Value add for Glycerol
Targeting a market for the used glycerol that economically adds to
and technically supports the process
For
per
sona
l use
onl
y
Drilling Market growing to $15b by 2018 at 7.5% CAGR
Driven by need for more energy – increased
population and usage
New drilling: fracking, horizontal drilling, deep sea
Drilling companies switching to bio-based products
A growth market and a good market to enter
Used as a Bulking and/or Firming agent
A Gelling and/ or Glazing agent
A Humectant or Stabiliser
An Emulsifier or Thickener
Requires higher purity to be effective
Cosmetics
Pharmaceutical
Detergents
Adhesives and Paints
Ceramics
Carboxylmethyl Cellulose (CMC) A versatile, high value output
CMC Drilling grade viscosifiers -
Drilling Mud Food Market Other Applications
For
per
sona
l use
onl
y
Value Creation Steps leading to production of Cellulose
Secure plant location and
biomass
Underway
Final engineering specifications for chosen location
Complete
Feasibility
Study
Underway
Engage downstream
partners:
Underway
Secure Funding
“Profitable” demonstration plant
Leaf Energy has a tangible and realisable pathway to production to rapidly exploit its opportunity
For
per
sona
l use
onl
y
International Scope Intellectual property coverage
The company’s IP was developed in association with Syngenta Currently at country stage in PCT countries
India Thailand
Indonesia
Malaysia
Australia & NZ Rights
Obtaining Rights
Seeking Rights
Northern Europe
Mauritius
For
per
sona
l use
onl
y
Experienced Executive Team Domain expertise and influence
Dr. Jay Hetzel Chairman
Background in biotechnology R&D and commercialisation Co-founder of Catapult Genetics (sold to Pfizer) Numerous board & executive positions; Biotechnology advisory
roles to government and industry
Ken Richards Managing Director
Track record in managing, growing and transitioning high growth ASX and private companies
As CEO of Norgard Clohessy Equity Ltd took from a start up with capitalisation of $60,000 to $50M
Charles Wilson Non-executive Director
Project Management Engineer Extensive project and construction management experience Former Chairman Aquacarotene Ltd
Alex Baker Chief Operating Officer
20 years industry experience, science and technology commercialisation professional
As CEO lead Maverick Biosciences into the bio-medical product field via transformational business strategy
For
per
sona
l use
onl
y
Leaf Energy Ltd (LER) Capital structure and shareholdings
Ord Shares on Issue 59.17M
Options (10c exercise) 4.8M
Current Price $0.042
Market Cap $2.48M
Top 20 Shareholders 72%
Board & Management 39.25%
Cash* $600K
Enterprise Value $1.88M
Leaf Energy’s cash in bank position together with its IP portfolio indicates there is considerable room for growth in its Enterprise Value
Source: ASX Trading Platform, 4th March 2014
* (as per last 4c)
For
per
sona
l use
onl
y
Investment Highlights Technology and market advantage
Strong Technology:
Glycell™ Process
Many Markets:
Cellulose has many uses in many markets
Rapid Path to Market:
Commercial path established; funding to
get ready for production and sales
Environmental Credentials:
Capitalising on the switch to the green
economy
Strong Value Proposition:
Unique process in rapidly growing
markets
Scalable Business Model:
Growth potential is large
For
per
sona
l use
onl
y
Expressions of Interest Participate in the future of biomaterials
Low price point entry into a company that can revolutionise the fast growing bio-based products market
Contact: Ken Richards: Managing Director
k.richards@leafenergy.com.au +61 403 385 051
For
per
sona
l use
onl
y
Cellulose Sources
Appendix 1: Cellulose Growth prospects for Cellulose products very strong
Grown: Cotton, Linen,
Flax etc
From pulping woodchip
From fractionating
biomass
Cellulose properties:
Strong, lightweight, absorbent, viscose & versatile
Traditional uses: Paper and Fabric (Cotton, Linen, Rayon,
Viscose)
Fibre reinforced composites
Cellulose derivatives: Industrial, food, cosmetic, pharmaceutical
Building block for other carbon molecules
Convert to sugars and bio-based products – green chemicals,
biofuels, bioplastics
New uses: 3D printing, bio-plastics, Nano-cellulose
The most abundant organic material on planet
For
per
sona
l use
onl
y
Appendix 2:The “Cellulose Gap” Demand rapidly outstripping supply
• Population and prosperity increasing demand for fibre
• Properties, absorbent and breathable, give cellulosic fibre bigger market share
• Consumer desire to move away from oil based synthetics
• New uses/applications
Demand for cellulose
increasing 84% by
2030
• Cotton plantings down from 35.7 m ha to 28m ha in 2030- pesticide use, water use and competing land uses
• New pulp mills difficult (Gunn’s Tasmania)
• Difficult to access cellulose from biomass needs high temperature, high pressure
Supply side issues
3.2 3.6 3.4 3.3 3.1
0.5
0.6 1.3
1.8 2.3
0
1
2
3
4
5
6
2010 2015E 2020E 2025E 2030E
Kg
per
hea
d, p
er y
ear
Estimated per capita consumption of cellulosic fibres 2010-2030
Cotton Cellulose
Source: Lenzing, 2011
For
per
sona
l use
onl
y
top related