NOVUM ENERGY AUSTRALIA PTY LTD 3 September 2019
Transcript of NOVUM ENERGY AUSTRALIA PTY LTD 3 September 2019
NOVUM ENERGY AUSTRALIA PTY LTD 3 September 2019
DISCLAIMER
2019/09/10 Novum Energy Australia Pty Ltd
• This Presentation (“Presentation”) has been prepared by Novum Energy Australia Pty Ltd (ACN 627 051 307) (“NOVUM” or “the Company”) to provide selected parties with a preliminaryunderstanding of NOVUM. This Presentation is provided on a confidential basis, and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any other personwithout NOVUM’ prior written consent.
• This Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investmentin NOVUM or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). This Presentation is nota prospectus, product disclosure statement or other offer document under Australian law or any other law. This Presentation is for information purposes only and is not an invitation or offer ofsecurities for subscription, purchase or sale in any jurisdiction. This Presentation should not be relied upon when evaluating a possible investment in NOVUM. This Presentation does notconstitute investment, legal, tax, accounting, financial product or other advice. You should make your own enquiries and investigations regarding all information in this Presentation. ThisPresentation has been prepared without taking account of any person’s individual investment objectives, financial situation or particular needs. Before making an investment decision,prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting andtaxation advice. This Presentation has been prepared on the basis of publicly available information and certain confidential information. NOVUM has relied upon and assumed, withoutindependent verification, the accuracy and completeness of all such information, including forecasts. It contains selected information and does not purport to be all inclusive or to contain all ofthe information that may be relevant to this Presentation. You acknowledge that circumstances may change and that this Presentation may become outdated as a result.
• This Presentation contains forward-looking statements which may be identified by words such as “believes”, “estimates”, “expects”, “targets”, “intends”, “may”, “will”, “would”, “could”, or“should” and other similar words that involves risks, uncertainties and other factors concerning, among other things, NOVUM’ expected financial performance and strategic operationalplans. The forward looking statements contained in this Presentation are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and otherfactors, many of which are beyond the control of 'NOVUM". ‘NOVUM' actual results may differ materially from the results expressed or implied by such forward-looking statements. It is notpossible to accurately predict the future revenues or profitability of 'NOVUM" or whether any revenues or profitability will eventuate. 'NOVUM" does not give any assurances that the results,performance or achievements expressed or implied in this Presentation will actually occur. Any decision to rely on the information contained in this Presentation is your sole responsibility. Anyinvestment in ‘NOVUM should be considered highly speculative. NOVUM will not be liable for any loss incurred by you as a result of any actions taken by them. NOVUM does not intend toprovide any additional or updated information whether as a result of new information, future events or otherwise, except as required by law.
• NOVUM, its related bodies corporate and other affiliates, and their respective directors, officers, directors, employees and agents make no representation or warranty as to the accuracy,completeness, timeliness or reliability of the contents of this Presentation and do not accept responsibility for its contents. NOVUM, its related bodies corporate and other affiliates, and theirrespective directors, officers, directors, employees and agents exclude and disclaim all liability, including without limitation for negligence or for any expenses, losses, damages or costs incurredby any person as a result of participating in or failing to participate in NOVUM' capital raising referred to in this Presentation (“Capital Raising” or the “Offer”) or the information in thisPresentation being inaccurate or incomplete in any way for any reason whether by negligence or otherwise. NOVUM, its related bodies corporate and other affiliates, and their respectivedirectors, officers, directors, employees and agents make no recommendation as to whether you or your related parties should participate in the Capital Raising nor do they make anyrepresentations or warranties to you concerning the Capital Raising. You represent, warrant and agree that you have not relied on any statements made by NOVUM, its related bodies corporateand other affiliates, and their respective directors, officers, directors, employees and agents in relation to the Capital Raising.
• Any requests for information in connection with this Presentation should be addressed directly to NOVUM and to no other party. The information in this Presentation remains subject to changewithout notice.
NOVUM ENERGY AUSTRALIA Pty Ltd (NOVUM) has the aim of providing:
a pro-energy technology to First World and Emerging markets
opportunity to create exponential value in rubber and carbon-based waste in the miningindustry;
“dynamo” of environmental conservation and sustainable socio-economic upliftment oflocal communities.
convert carbon-based feedstocks (i.e. rubber, plastic, waste oil) to usable carbon-basedby-products and renewable energy;
by-products are of high quality and fully recyclable and not discarded;
management and associates with experience in successfully developing viable projects.
EXECUTIVE SUMMARY
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Capital Structure
Company Privately Held
Shares 100
Est. Market Value $178M
DirectorsDr. Louis SchurmannDirector (Chairman)
30 years in exploration geology with several discoveries and operations, creating, enabling environments for investment. An avid supporter of enhancing socio-economic conditions by leveraging sustainable solutions and a co-founder of Novum Energy Australia.
Gustav Van RooyenDirector (CEO)
25 years plus in development of various industries / projects in South Africa. A co-founder of Novum Energy Australia, with an entrepreneurial background in Mineral Resources Ventures.
Henry Van EckDirector (COO & CEO Thermocon)
Over 10 years specialising in rubber recycling, as former CEO of Total Rubber Recycle and shareholder Global Asset Management. Instrumental in securing the rights to GCI’s Thermo Vacuum Recovery technology.
Fred TaylorDirector (Chairman & President OTR Wheel Engineering, Green Carbon Inc.)
30 years in the tyre industry, founder of Green Carbon Industries and associated Thermo Vacuum Recovery (TVR) technology. OTR Wheel Engineering was founded in 1987 as a small wheel shop in Rome, Georgia. There he began to manufacture and distribute wheels and wheel components to customers in the Southeast US, then sought to develop a process of recycling rubber – developing TVR technology.
Rowan KendallDirector (MD)
25 years plus experience in Australian energy and telecommunications industry, in leadership, operations and infrastructure development. Demonstrated experience in development of strategic alliances and JVs delivering innovative and effective outcomes.
George MaasDirector (CFO)
Financial Manager for several SME’s. Independent consultant in the fields of accounting, taxation, business acquisitions and corporate restructuring. Assoc. member of RSA Institute of Chartered Accountants.
CORPORATE OVERVIEW
Shareholder Registry
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http://www.novumenergy.com.auhttp://www.otrwheel.com
90%
10%
Board andManagement
Shareholders
Novum Energy Australia Pty Ltd (ACN : 627 051 307)Registered Address:43 Brindabella Circuit, Thornlands, Queensland, 4164
GREEN CARBON INCORPORATED (“GCI”) Research and Development Engineering
TECHNOLOGY PARTNERS
THERMOCON (PTY) LTD Maintenance Service Training
NOVUM ENERGY AUSTRALIA PTY LTD Capital Investment Project Delivery Operations Management
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OUR HISTORY
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2019May
Partner NDA signedOpportunities to co-locate plant and
partner with product offtakeSite visit to Weipa location
1st Partner NDA
2019June
Draft commercial terms developed Rubber Collection business
purchase
2nd and 3rd Majors NDA signed
2018June
Business RegistrationAustralia
Novum Energy Australia
2019October
Place orders for first plant equipment…
Order…
2018December
Board / Shareholding revised
Novum Energy Australia
2019September
QLD Exploration Council Presentation
Finalise Rubber Collection Business Purchase
2019March
1st Major NDA and LOI received
2019August
5th Major NDA signedLocal Government NDA
Client site visit US and LATAM AIMEX (Sydney)
2019April
Site visit to US (Rome GA) with Client
representative
1st Client Site Visit USA
2019July
4th major NDA signed / LOI received
Site visit to Bowen Basin to identify facility locations
4th Major NDA signed
The TVR process uses heat and reduced pressure to convert tyres into products.
Tyres are placed inside the unit at room temperature and pressure. The door is sealed and the system isplaced under vacuum and oxygen purged out of the system.
Heaters under the chamber fire using natural gas to heat the reactor to temperature, vapour fromdissociating rubber feed is condensed into two grades of fuel feedstock.
As the process gas reaches sufficient energy content, it replaces the natural gas in the burners, processtaking between 15.5 and 18.5 hours.
The reactor is cooled, leaving carbon black and steel in the chamber.
Carbon Black is then recovered via a vacuum system before opening the door to remove the steel.
INTRODUCTION – TVR (THERMO VACUUM RECOVERY)
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VARIABLE PLANT FOOTPRINT – FIXED PLANT
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GCI_103 fixed plant (front end)
VARIABLE PLANT FOOTPRINT – FIXED PLANT
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GCI_103 fixed plant (back end)
VARIABLE PLANT FOOTPRINT – MOBILE PLANT
GCI_102 mobile
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VIDEO
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TECHNOLOGY PATENTS AND INDUSTRIAL CERTIFICATION
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TVR PROCESS Vs TRADITIONAL PRODUCTION (GHG)
Equivalent product CO2 emissionsTVR production
CARBON CREDIT : TVR PROCESS Vs SHREDDING OR CHIPPING
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Carbon Credits are available for not transporting,shredding and grinding waste rubber
The Carbon Credit summary (See Table) covers the TVR process only
The Carbon Credit potential can increase three-fold when by-products substitute for “virgin” fuel, Carbon Black, syngas and steel
PRODUCT QUALITY: TVR PROCESS Vs SHREDDING OR CHIPPING
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Generates 8 times the energy (as gas and oil) needed in the recovery process – much less than
shredding and grinding waste rubber
Due to the TVR’s unique technology and feed preparation all products are of high quality:
→ Gas is much cleaner than syngas produced by pyrolysis process - better generation performance –less maintenance
→ Oils are of higher quality than pyrolysis oils - Vacuum Gas Oils require less refining to produce required product specification
→ Carbon Black has less ash content and is of higher quality than product produced in pyrolysis process
Why TVR ???
The latest advances and capacities in Thermo-chemical Vacuum Recovery Technology
CAPACITY RANGES – MOBILE to FIXED PLANTS
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GCR 103Number 1 Mths / Yr 11 Cycles / mth 25 rCB (Kg) Oils (L) Steel (Kg) Gas (m3)Kg Rubber/cycle 13,500 3,375 6,750 1,620 411 Kg Rubber/mth 337,500 84,375 168,750 40,500 10,284 Kg Rubber/year 3,712,500 928,125 1,856,250 445,500 113,120
Produced
GCR 104Number Units 1 Mths / Yr 12 Cycles / mth 24 rCB (Kg) Oils (L) Steel (Kg) Gas (m3)Kg Rubber/cycle 18,141 4,535 9,071 2,721 553 Kg Rubber/mth 435,384 108,846 217,692 65,308 13,266 Kg Rubber/year 5,224,608 1,306,152 2,612,304 783,691 159,194
Produced
Number 1 Mths / Yr 12
25 rCB (Kg) Oils (L) Steel (Kg) Gas (m3)Kg Rubber/cycle 6,600 1,650 3,300 792 201 Kg Rubber/mth 165,000 41,250 82,500 19,800 5,028 Kg Rubber/year 1,980,000 495,000 990,000 237,600 60,331
GCR Mobile
ProducedCycles / mth
PRODUCT APPLICATION – OILS / FUELS Blasting – Ammonium Nitrate Fuel mix (ANFO) ❑ Coal washing process- flotation cells❑ Furnace Oil❑ Specific refined products; D-Limonene, Solvents, Essential oils, Sealants, Waxes,
Greases, Lubricants
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ELECTRICITY GENERATION: GAS / FUEL FROM TVR-PRODUCTS
On-site distillation of renewable fuel feedstock to produce products like gas, light and heavy gas oil with derivatives. Power generation (known as Bio-cogeneration system designed by CAT™). General ElectricTM have matched generators which can be supplied by gas or oil. The electricity can be supplied to local grid or local networks.
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Combustible Organic Gases (wt %) 83.5Nitrogen (wt %) 10.24Carbon Dioxide ( wt %) 6.23
GAS BASIC COMPOSITION
PRODUCT APPLICATION – Recovered CARBON BLACK
(1) Metal Smelting; Process – Reductant, Cathodes; (2) Plastics extrusion blend, product filler; (3) Paint tinting, inks, toner; (4) PVC and rubber manufacturing; (5) Clay pigeon /skeet manufacturing; (6) Energy generation.
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CARBON BLACK QUALITY: BIO-BASED CONTENT
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GCI_103 Plant layout (10,000sqm)
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GCI_104 x 3 Plant layout (10,000sqm)
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GAT
E 3
STOCK PILE 3
STOCK PILE 1
5 m 40 m
STOCK PILE 2
116
m5
m
OFFICE PARKING
25 m
GATE
2G
ATE
1
WORKING AREA
Plant Type Total
GCR 104 10
GCR 103 17
27
Rubber Processed Total (Kt/p.a.)
GCR 104 50
GCR 103 94
Annual Total 144 Kt
POTENTIAL PROJECT OPPORTUNITIES
TVR - CURRENT AND POTENTIAL WORLDWIDE
NOVUM / the TVR process will be able to provide carbon black, steel, syngas, and fuel oil on a commercial scale.
Source: TSA Potential sitesExisting sites
SUMMARY
❑ TVR technology by NOVUM is the only size-variable commercial recovery process for end-of-use rubber and carbon-based mining
waste
❑ IP patented, tested, proven and operational plants in the USA and Canada
❑ Flexible in plant-size, feed-type, location (self-sustainable), and mobile solutions
❑ Generates 8 times the energy (as gas and oil) needed in the recovery process
❑ Due to the TVR’s unique technology and feed preparation all products are of high quality
❑ Products: fuel oil, syngas, rCB and steel for direct re-usable applications
❑ Several options in down-stream, value-added markets (i.e. hydrocarbon types and application or electricity generation)
❑ Current rCB demand: reducing agents in base metal smelters; filler in plastic extrusion processes; rCB combustion electrical
generation
❑ Highly favourable environmental impact footprint compared to other known processes
❑ Socio-economical and job generation in regional markets
❑ Promoting Environmental Sustainability with reduction in emissions and landfill diversion capability.
❑ Positive Carbon Credit status
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COMMERCIAL OPTIONS
Novum Energy Australia and Commercial Engagement:
❑ Review potential engagement opportunities (1 or more);
1. Engage in waste-management of OTR – remove and dispose of OTRs
• Agreement to supply feedstock
2. Agreement to take produced materials – 1 or more (e.g. Oils, Diesel, Gas, Electricity, Carbon Black)
3. Agreement to partner in ongoing development opportunities
4. Investment levels in Processing Business or Holding Business – option for equity stake
COMMERCIAL STRUCTURE OPTION 1
TVR PlantOperated by
Novum
Entity
Productto market
Novum Energy Australia Novum Process
Tyres
Agreement to provide waste
rubber / OTR tyres
Novum sells product to
market100% capital5yr payback
Novum produces Carbon Credits
COMMERCIAL STRUCTURE OPTION 2
TVR PlantOperated by
Novum
Entity
Novum Energy Australia Novum Process
Tyres
Agreement to provide waste
rubber / OTR tyres
100% capital5yr payback
Novum sells remaining product to
market
Oils / Diesel Carbon black Electricity Scrap Steel
Novum sells 1 or more product to Entity1. 5yrs @ rate2. Post 5yrs @
discount rate
Novum produces Carbon Credits
COMMERCIAL STRUCTURE OPTION 3
TVR PlantOperated by
Novum
Entity
Novum Energy Australia Novum Process
Tyres
1. Agreement to provide waste rubber / OTR tyres2. Leverage Freight Options3. Support aggregation of rubber from other suppliers4. Support new projects internationally
100% capital5yr payback
Novum sells remaining product to
market
Oils / Diesel Carbon black Electricity Scrap Steel
Novum sells 1 or more product to Entity1. 5yrs @ rate2. Post 5yrs @
discount rate3. Brands
product for internal use
Novum produces Carbon Credits
COMMERCIAL STRUCTURE OPTION 4 – HOLDING COMPANY
TVR Plantco
Entity
TVR Process Company
Novum Energy Australia 10 year rental
agreement
51% equity
Convertible Preference shares up to 49% general
equity
Novum Holdings
100% equity
COMMERCIAL STRUCTURE OPTION 4 – PROCESS COMPANY
Novum Holdings Fund/Entity
Oils / Diesel Carbon black Electricity Scrap Steel
TVR ProcessCompany
Take off agreements @ agreed discounts
75% general equity
Convertible Preference shares up
to 25% general equity
43 Brindabella Circuit, Thornlands, Queensland, 4164
+61 419 022 179Reclaiming our future
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