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CHEAPER CLEANER AND SAFER ENERGY FROM COAL SYNGAS – a substantial, long-term, locally sourced, competitively priced alternative energy produced from In-Situ Gasification (ISG*) of deep un- mineable coal requiring NO FRACKING and posing NO THREAT to rural properties or aquifers. Readily Available Environmentally Appropriate Commercially Viable Syngas POWER sourced from large, deep, un-mineable coal resources, domestically and abroad Syngas is: produced with minimal environmental impact compared to mined coal or coal seam gas Competitively priced and operationally improved compared with mined coal Syngas Power Pty Limited can: Deliver a stable priced fuel for power stations, alumina smelters, cement and brick works over long periods Process raw syngas into pipeline quality synthetic natural gas (SNG) Provide a source of commercial CO 2 for proteins or liquid fuel production or enhanced oil recovery Deliver syngas to be used as a feed stock for DME, methanol, urea and gas-to-liquids plants and the coming hydrogen economy. SYNGAS Power Pty Limited is seeking funding to open substantial new energy provinces in Australia and offshore. * In-situ coal gasification (ISG) is also commonly known as underground coal gasification (UCG). ISG is used exclusively in this document JAPAN COOPER BASIN COLLIE HUNTER VALLEY THE NORTH, UK S U B ST A N TIAL NEW ENERGY PR OVIN CES W ORLD-WIDE (10s of 1,000s of PJs) 1 2 3 4

Transcript of Syngassyngaspower.com.au/wp-content/uploads/2014/09/SYN… ·  · 2014-09-12Factors now favouring...

CHEAPER CLEANER AND SAFER ENERGY FROM COAL

SYNGAS – a substantial, long-term, locally sourced, competitively priced alternative energy produced from In-Situ Gasification (ISG*) of deep un-mineable coal requiring NO FRACKING and posing NO THREAT to rural properties or aquifers.

Readily Available

Environmentally Appropriate

Commercially Viable

SyngasPOWER

• sourced from large, deep, un-mineable coal resources, domestically and abroad

Syngas is:

• produced with minimal environmental impact compared to mined coal or coal seam gas

• Competitively priced and operationally improved compared with mined coal

Syngas Power Pty Limited can:

Deliver a stable priced fuel for power stations, alumina smelters, cement and brick works over long periods

Process raw syngas into pipeline quality synthetic natural gas (SNG)

Provide a source of commercial CO2 for proteins or liquid fuel production or enhanced oil recovery

Deliver syngas to be used as a feed stock for DME, methanol, urea and gas-to-liquids plants and the coming hydrogen economy.

SYNGAS Power Pty Limited is seeking funding to open substantial new energy provinces in Australia and offshore.* In-situ coal gasification (ISG) is also commonly known as underground coal gasification (UCG). ISG is used exclusively in this document

JAPAN

COOPER BASINCOLLIE HUNTER

VALLEY

THE NORTH, UK

SUBSTANTIAL NEW ENERGY PROVINCES WORLD-WIDE (10s of 1,000s of PJs)

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Vision: Commercial Delivery of ISG SyngasSyngas Power Pty Limited’s (SPPL) vision is to commercialise the safe and clean delivery of Syngas via in-situ gasification of deep un-mineable coal.

Energy Market OpportunityThe extensive resource, competitive price and environmental characteristics of ISG Syngas present amajor opportunity. Recent quantum shifts in Australia’s and international gas markets due to traded LNGprices make jurisdictions with deep coal resources ideal for Syngas production.

Target Market: Electricity GenerationBy 2045 the planets six-billion low-volume electricity users, which consume a quarter of the electricity ofthe one billion high-volume users, will transition to high-volume users. Expanding Business as Usual coalfuelled electricity generation is environmentally unacceptable. Syngas fuelled combined cycle gasturbine power stations using un-mineable local deep coal resources is a viable and robust solution.

Social Licence to OperateSyngas from ISG has the credentials necessary to obtain a Social Licence to Operate. Syngas is safe, has asmall environmental footprint and environmental advantages in comparison to coal mining and coal firepower stations and coal seam gas. It delivers local community and wider stakeholder benefits.

SSPL Assets SPPL has created valuable assets:• Expert team; twenty reputed, highly qualified technically and commercially experienced individuals• EPC 2907 coal exploration permit, Queensland; exploration target >600 MT of coal, equivalent to >6,000

PJ of Syngas to progress to a 25 PJ per annum natural gas project• Heads of Agreement with Griffin Coal, Western Australia; access to nearly half the deep Collie coal• Collaboration Agreement with Macquarie Generation, New South Wales; to conduct a scoping study to

deliver Syngas to Hunter Valley coal-fuelled power station boilers• Five potentially gasifiable deep coal exploration targets, The North, UK; close to three coal-fuelled• power stations • Syngas projects with favourable risk profiles for substantial new energy provinces world-wide

SSPL ActivitiesDirected at creating rapidly increasing valuable assets. Raising funds to explore EPC 2907 and progresssubstantial new Syngas energy provinces in the Hunter Valley of NSW, in the Collie region of WA, in TheNorth of the UK, in Hokkaido, Japan and commence the identification of a Syngas project in China.

Funding and Divestment OpportunitiesSPPL is seeking equity funding. Divestment opportunities may arise at future fund raisings with a smaller one proposed in Q1’ 2015 and or a larger one in Q4 ‘ 2015 by way of IPO, buy-out by another industry participant, or direct sale to shareholders seeking larger positions in SPPL.

SPPL PersonnelSPPL’s current activities are performed by experienced management, technical and commercialpersonnel remunerated by share options ONLY. They are highly motivated to ensure company success.

SyngasPOWER

EXECUTIVE SUMMARY

2SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

Index

VISION: COMMERCIALISE the DELIVERY of ISG SYNGAS....................................................................................

ENERGY MARKET OPPORTUNITY

Australian Eastern Seaboard (AES)............................................................................................................

Western Australia (WA)...............................................................................................................................

UK.................................................................................................................................................................

Japan............................................................................................................................................................

China............................................................................................................................................................

Others..........................................................................................................................................................

TARGET MARKET: ELECTRICITY GENERATION

The Challenge..............................................................................................................................................

The Problem.................................................................................................................................................

A Solution.....................................................................................................................................................

Combined Cycle Gas Turbine Power Stations............................................................................................

OBTAINING a SOCIAL LICENCE TO OPERATE

Safe..............................................................................................................................................................

Environmentally Attractive........................................................................................................................

Local Community and Wider StakeholderBenefits...................................................................................

SPPL ASSETS...........................................................................................................................................................

SYNGAS PROVINCES RISK PROFILES...................................................................................................................

SPPL ACTIVITIES

Progress SYNGAS Projects ......................................................................................................................

Example Projects - Business Model Comparison....................................................................................

SPPL KEY PERSONNEL.

Management.............................................................................................................................................

Commercial & Technical...........................................................................................................................

Confidential Information Memorandum...............................................................................................................

SPPL Contact.........................................................................................................................................................

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VISION: COMMERCIAL DELIVERY OF ISG SYNGAS

SYNGAS Power Pty Limited is focused on commercialising the safe, clean delivery of competitively priced SYNGAS.

SYNGAS has been produced quickly and efficiently from In-Situ Gasification pilot and demonstration plants around the world. Only one is a commercial operation – so far.

Commercial SYNGAS delivery starts with a small, safe, scalable, low-risk and minimal CAPEX project delivering SYNGAS to an existing commercial off-taker - most likely a coal-fuelled power station.

Wherever in the world energy is imported or exposed to export prices and there is deep in-situ coal resources then there is a favorable economic environment for ISG SYNGAS production.

Factors now favouring commercialization of ISG SYNGAS include:

• a forecast competitive price position• growing social resistance to the environmental footprint and risks of coal mining, coal seam and shale gas• modern directional drilling technology allowing deep (> 600 metres) and safe ISG operations• a gaseous fuel with the same low resource risk as coal mining• zero particulate matter (PM2.5) released into the atmosphere (the major cause of China’s air pollution)• delivering commercially viable reduction of SOx, NOx and CO2 emissions to coal-boiler flue gases• prohibitive commercial barriers to capturing CO2 from coal-fuelled boiler flue gases

The competitive price and superior environmental capability of SYNGAS parallel the quantum shifts in world energy markets and presents a major commercialisation opportunity.

ENERGY MARKET OPPORTUNITY

AUSTRALIAN EASTERN SEABORDAustralian eastern seaboard domestic natural gas markets are now exposed to export markets. Queensland export LNG is influencing the up until recently local gas price of A$3.50-4.50 per GJ with 2017 forecasts of A$8-12 per GJ.

Identified opportunities both domestically and internationally, puts SPPL in a position to meet the rapidlyincreasing global demand for cleaner energy from coal.

PAST 30 YEARS - PRESENT NEXT 5-7 YEARS

AES Wholesale Price

A$ 8-12 per GJ

Japan/US

A$ 12-18 per GJ

LNG

1450PJp/a

700PJp/a

TO ASIA

670PJp/a

AES Wholesale PriceA$ 3.50-4.50 per GJ

BASS STRAIT

GLADSTONE

BASS STRAIT

GLADSTONECSG FIELDS

MOOMBA MOOMBA

COOPER BASIN

Natural Gas Pipeline Network

SPPL’s Cooper Basin Syngas-to-SNG

4SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

PAST 30 YEARS - PRESENT NEXT 5-7 YEARS

ENERGY MARKET OPPORTUNITY (Cont.)

INTERNATIONAL ENERGY MARKETS

WESTERN AUSTRALIA (WA)

The capped contract volume of the long-term WA domestic gas supply agreements will be surpassed in 2015 exposing domestic WA natural gas consumers to Asian LNG prices of A$10+ per GJ.

UKUK has high energy prices. By 2020 the UK will rely on imported energy - raising cost and energy security issues. The UK has extensive deep coal near coal-fuelled power stations providing an ideal market for SYNGAS.

JAPANJapan imports 99% of its thermal coal needs and 100% of its natural gas. Nuclear power is problematic there. Japan has extensive un-mineable deep coal located adjacent to coal- fuelled power stations providing an ideal market for SYNGAS.

CHINAThe IEA’s medium-term gas market report released in mid-June 2014 sees China’s gas demand rising 90% between 2013 and 2019. China’s supply of gas can be sourced from its modest conventional and unconventional natural gas resources, from Russia by pipelines, by imported LNG and by in-situ gasification of its own huge coal resources – the largest coal resources in the world.

OTHERSThe cost of imported gas whether by pipeline or LNG, substantially increasing power needs, tightening environmental regulations coupled with domestic deep coal resources offers an ideal target for ISG SYNGAS especially in India and Thailand.

LNG

LNG

2200PJp/a

400PJp/a

Wholesale Price

A$ 6-10 per GJ

TO ASIA

1140PJp/a

Wholesale PriceA$ 3-4 per GJ

300PJp/a

TO ASIA

WA Gas Pipeline Network

SPPL’s Collie Syngas-to-SNG

5SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

The Challenge

Approximately seven billion people live on this planet. One billion are high-volume electricity users (Australia, North America, Japan and Europe) consuming substantial amounts of electrical power.

Six billion are low-volume electricity users consuming on average approximately 25% of the electricity that high-end electricity users consume. By 2040-45 the low-volume electricity users will approach the electricity consumption levels of high-volume electricity users.

The Problem

It is only fair that Developing World low-volume electricity users aspire to and become Developed World high volume users with access to cheap reliable coal-based electricity as we have done for 200 years. The ELECTRICITY CHALLENGE is to achieve this global equity while reducing the global environmental impact of electricity generated from the tradition use and production of coal.

The current ‘Business as Usual’ case predicts the proportion of world electricity generated by coal-fuelled boilers to drop substantially from around 60-70% to 30-40% and be primarily replaced by renewables. If this reduction occurs the absolute amount of global coal consumption will MORE THAN DOUBLE the amount consumed today with consequences for the environment resulting from increased emissions into the atmosphere of particulate matter (PM 2.5), SOx, NOx and CO2.

TARGET MARKET ELECTRICITY GENERATION

TH

E R

EALI

TY

2014 (NOW) 2035-45 (FORECAST)

High-Volume Power Uses(Developed World)

= 1 billion population

Low-Volume Power Uses(Developing World)

= 1 billion population

=

==

6SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

A Solution

A solution is to substantially reduce the dirtiness of electricity produced from coal. SYNGAS offers a viable, cleaner, cheaper and more environmentally friendly medium-term electricity delivery alternative to coal-fuelled boilers during the transition period until renewables replace fossil fuels 100%.

Worldwide 20%+of coal-fired boilers (50% in the US) will come off-line in the next ten years due to end-of-operating-life. Due to todays stricter statutory regulations operative in most western jurisdictions for particulate matter (PM 2.5) and NOx, SOx and CO2 emission these boilers cannot be replaced with a coal boiler.

SYNGAS fuelled Combined Cycle Gas Turbine (CCGT) Power Station can replace these coal fuelled power stations at lower capital and operating costs.

CCGT power stations fuelled by SYNGAS have a much lower capital cost, much higher efficiency, much lower physical size, much lower fuel inventory, and much lower emissions than coal-fuelled power stations.

CCGT power stations fuelled by SYNGAS have a much lower fuel cost than natural gas fuelled CCGT powerstations and therefore have the potential to be both base-load and peaking power plants.

TARGET MARKET: ELECTRICITY GENERATION (Cont.)

Combined Cycle Gas Turbine Power Station

7SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

OBTAINING a SOCIAL LICENCE to OPERATE

Today a Social License to Operate any project including a syngas project is obtained when a project hasongoing approval within the local community and other stakeholders and broad social acceptance.

“You don’t get your social license by going to a government ministry and making an application or simply paying a fee”. - Pierre Lassonde, President of Newmont Mining Corporation.

SYNGAS from ISG has good credentials for a social licence to operate because it is Safe and EnvironmentallyAttractive as well as delivering Local Community and Wider Stakeholder Benefits.

1. Syngas is produced from the gasification of DEEP in-situ coal, 100s of metres BELOW existing coal mines2. No CONNECTION to shallow (~200 metres) aquifers used for human or agricultural use3. Subsidence is UNLIKELY4. The syngas gasifier chamber pressure is set BELOW the natural hydrostatic pressure5. Groundwater movement is INTO the gasifier chamber6. Oil and gas industry norms are APPLIED to the design and operation

1. SMALLEST surface footprint of all energy sources – including renewables 2. Sited over brownfields mined out coal mines3. CO2 is economically captured from the pressurised raw syngas stream4. CO2 for algae to produce proteins for food or liquid fuels, or enhanced oil recovery or sequestration

1. NO FRACKING2. NO THREAT to or entry onto agricultural lands3. Minimal saline or chemically contaminated ground water pumped to the surface4. NO necessity for 1,000s of kms of gas or water pipelines crisscrossing the countryside

1. NO scarring of landscapes from open-cut coal mines2. NO movement of coal for stockpiling, transport, unloading and reclaiming3. NO coal dust so no pneumoconiosis (black lung disease) yearly killing 1,000s of coal miners around the world4. NO coal-fired boiler ash to be filtered, captured, transported and stockpile in ash dumps5. NO particulate matter (PM 2.5) emitted into the atmosphere (VIP for China)

1. New short-term (approx. 2 years) local employment opportunities in the construction phase2. New life-of-project (15-25 years) local employment opportunities in the operating phase3. New local business opportunities for services, material and equipment supply4. Federal Government income taxes paid from company profits5. State Government licence fees and royalties paid6. Company dividends paid to shareholders

SPPL considers the social licence to operate has equal status to the resource, technical and commercial requirements of a syngas project. Consequentially, SPPL has commenced the process to obtain a social licence to operate in each of its syngas projects.

Environmentally Attractive - Compared with Coal Seam Gas (CSG)

Environmentally Attractive - Compared with Coal Mining and Coal-Fuelled Boilers

Local Community and Wider Stakeholder Benefits

Environmentally Attractive - Overall Considerations

Safe

SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

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EPC 2907

SYNGAS Power Pty Limited was established in November 2011.

SPPL has built-up the following assets:

1. An expert team of 20 reputed and highly qualified individuals with extensive commercial, technical and project management ISG experience. Please refer to pages 12 & 13 for details.

2. Coal Exploration Permit EPC 2907 in the Cooper Basin of south-western Queensland which has an in-situ deep coal exploration target of 600 million to 1.02 billion tonnes (6,000 – 20,000 PJs) of potentially gasifiable coal.

SPPL ASSETS

3. A Heads of Agreement with Lanco Resources Australia/Griffin Coal to access to approximately half the Western Australia deep Collie Basin coal with an exploration target of 100 - 300 million tonnes (1,000 - 5,000 PJs)

4. A collaborative agreement with New South Wales Macquarie Generation, Australia’s largest black-coal power generator, for a scoping study to deliver SYNGAS to co-fuel a coal-fuelled power station

5. Three immediately deliverable market-focused PRE-REQUISITE SYNGAS commercialisation projects in the Hunter Valley of NSW, at Collie in WA and in The North, UK

6. Two medium-term FULL-SCALE commercial projects - Cooper Basin SYNGAS-To-SNG and Hokkaido, Japan co-fuelling project

7. Identified five potentially gasifiable deep coal UK exploration targets close to 3 coal-fuelled power stations

Syngas produced from EPC 2907’s deep coal and processed to natural gas has the potential to supplysubstantial quantities of pipeline quality natural gas to Queensland’s existing natural gas pipeline network.EPC 2907 is less than 65 kms from one of the network’s major hubs.

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SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

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SPPL ASSETS (Cont.)

SYNGAS PROVINCES RISK PROFILES

A Risk Profile for each of the five SPPL Projects is set out diagramatically on the next page. The Risk Profiles include:

Co-fuelling one coal fuelled power station in either Collie, WA, Hunter, NSW or The North, UK is seen as acommercial PRE-REQUISITE for a full scale commercial SYNGAS project e.g. in Hokkaido, Japan or in theCooper Basin south-west, QLD.

SPPL’s extensive physical and commercial assets have been built up through the efforts and contribution of SPPL’s expert personnel. All past and current SPPL personnel including SPPL management have been and continue to be incentivised and remunerated by SPPL share options only. SPPL has acquired its assets quickly at an extremely low cash-burn rate due to only expending its shareholders’ funds on out-of-pocket expenses.

Continue Heads of Agreement discussions with an ASX-listed producer of algae products. SPPL and the algae company have agreed to a joint presentation and offer to UK power stations. SPPL will sell CO2

A deliverable market-focused business plan to commercialise the delivery of SYNGAS

Excellent local SPPL representatives in Australia, The UK and Japan

World-wide contacts in the ISG industry and detailed knowledge of its recent history

Working with potential SYNGAS project funders – private equity, JVs & IPOs - in Australia, Singapore, Hong Kong, the UK, Canada and recently in China

Established and progressing communication channels with Australian Federal and State Governments

Ongoing development of a SYNGAS commercialisation co-operation agreement with the world’s leading designer and manufacturer of SYNGAS gas turbines

Recent discussions for immediate small working capital funding and longer-term larger funder amounts in Beijing and Taiyuan, Shanxi Province in China for scoping studies and projects.

Project Critical Success Factors - Suitability &/or Readiness

Project Elements

1. Fundamentals2. Strategic Partner Agreements

A., B. & C. InventoryD. TimeE. Cost

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SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

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ID  

PRO

JECT

 CRI

TICA

L  SU

CCES

S  FA

CTO

RS  

RISK

 PRO

FILE

 PR

E-­‐RE

QUISITE  

Com

mer

cial

 Pro

ject

 Cho

ice  

Full  

Scal

e  Co

mm

erci

al  P

roje

ct  

Full  

Scal

e  Co

mm

erci

al  P

roje

ct    

Colli

e    

WA  

Hun

ter  

NSW

 Th

e  N

orth

 U

K  H

okka

ido  

 Ja

pan  

Sout

h  W

est  C

oope

r  Bas

in    

QLD

 1  

Fund

amen

tals

   1.

aGas  Price  –  A$

 per  GJ  

$6-­‐1

0  $6

-­‐9  

$8-­‐1

0  $1

5-­‐18

 $6

-­‐9  

1.b

Coal  Price  –  A$

 per  GJ  

$2  

$3  

$5  

$5  

N/A

 1.

cEnergy  Security  Exposure  

1.d

Regulatory  Profile  

1.e

Social  Licence  to

 Operate  Profile  

1.f

Identification    

1.g

Deep  Coal  

1.g.

1Brow

n  field  

N/A

 1.

g.2

Green  field  

N/A

 N

/A  

N/A

 N

/A  

1.h

Market  &

 Customer  Access  

1.h.

1Po

wer  Statio

n  N

/A  

1.h.

2Indu

stria

l  Users  

1.h.

3Natural  Gas  Pipeline  

2  St

rate

gic  

Part

ner  A

gree

men

ts  

2.a

Deep  Coal  Access  

2.b

Power  Statio

n(s)  Collabo

ratio

n    

N/A

 2.

cIndu

stria

l  Users  –  Gas  sa

le  

2.d

Natural  Gas  Pipeline  –  Gas  sa

le  

Risk

 Pro

file  

Colo

ur  K

eys  –

 Sui

tabi

lity  

&/o

r  Rea

dine

ss  

Goo

d                                                                  &

/or            M

ileston

e  achieved    

Satisfactory                                            &/or            In  progress  

Less  th

an  sa

tisfactory        &/or            Not  started  

PRO

JECT

 ELE

MEN

TS  

INVE

NTO

RY,  T

IME  

and  

COST

 A.

Pr

ovin

ce  S

cale

 Pot

entia

l  in  

PJ  p

er  a

nnum

 200  

200  

250  

1,000  

500  

B.

Firs

t  Yea

r  Fac

ility

 Cap

acity

 in  P

J  per

 ann

um  

0.3  

0.3  

0.3  

5.0  

25.0  

C.

Pote

ntia

l  Res

ourc

e  Li

fe  S

pan  

in  Y

ears

 >  80  yrs  

?  yrs  

>  80  yrs  

?  yrs  

>  40  yrs  

D.

Lead

 Tim

es  –

 Mon

ths  f

rom

 01  

Janu

ary  

2015

 -­‐

Scop

ing  Stud

y  12

 mon

ths  :

 Jan’

15-­‐S

ep’1

5  9  

mon

ths  :

 Oct

’16-­‐

Jul’1

7  6  

mon

ths  :

Aug’

14-­‐J

an’1

5  -­‐

Proo

f  of  R

esou

rce      

12  mon

ths  :  Oct’15-­‐Sep’16  

12  mon

ths  :  Oct’16-­‐Sep’17  

36  mon

ths  :  Aug’14-­‐Jul’17  

-­‐ Pre-­‐Feasibility  Study  &  Regulatory  Ap

proval  

12  mon

ths  :  Oct’15-­‐Sep’16  

12  mon

ths  :  Aug’17-­‐Jul’18  

24  mon

ths  :  Aug’16-­‐Jul’18  

-­‐ Engineering,  Procurement,  Co

nstructio

n  &  M

gt  

15  mon

ths  :  Oct’16-­‐De

c’17  

15  mon

ths  :  Aug’18-­‐Oct’19  

15  mon

ths  :  Aug’18-­‐Oct’19  

-­‐ Operatio

nal  G

o  Live  

Jan’

18  

Nov

’19  

Nov

’19  

E.

 CAP

EX  fo

r  Ben

efits

 Rea

lisat

ion  

Out

com

es  ($

mill

ions

)  -­‐

Scop

ing  Stud

y  1.75  

1.75  

2.00  

2.50  

0.15  

-­‐ Proo

f  of  R

esou

rce  

1  to  3    

2  to  8    

1  to  3    

5  to  10  

5  -­‐15  

SYN

GA

S P

RO

VIN

CES

- R

ISK

PR

OFI

LES

11SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

ACTIVITIES

PROGRESS SYNGAS PROJECTSSPPL’s personnel activities are focused on rapidly increasing asset value by progressing SPPL’s SYNGAS projects. The activities are:1. Raising equity funds by the end of September 2014.

2. Commence the first year statutory exploration commitment for SPPL’s Cooper Basin Coal Exploration Permit EPC 2907 to enhance the resource definition of the current exploration target of 600- 1,020 mt of deep in-situ gasifiable coal equivalent to 20-60,000 PJ of Syngas and progress project funding plans to submit to currently identifed potentially interested investors and JV partners

3. Raising A$2.0 million per SYNGAS delivery project to fund collaborative scoping studies, the first scoping study to be funded by the end of December 2014

4. Progress the Collie SYNGAS Project in WA to sign a scoping study collaborative agreement with a coal-coal-fuelled power station owner by end of December 2014. Presentations are planned for October 2014 in Perth to Synergy’s management, WA Government planners and regulators, potential WA alumina smelter SYNGAS off-takers (Alcoa & BHP Billiton), and potential JV partners

5. Progress the Hunter Valley, NSW SYNGAS Project to gain access to deep in-situ coal in the vicinity of the Macquarie Generation power stations by December 2014

6. Progress The North, UK SYNGAS Project with a revised presentation to UK power stations in late October 2014 including a revised scoping study collaborative agreement offer which an algae- consuming CO2 proposal. The goal is a signed scoping study collaborative agreement by December 2014

7. Progress Hokkaido SYNGAS Project by identifying potential deep coal measures close to existing coal-fired power stations and obtain a suitable Japanese JV partner to facilitate SPPL working with the Japanese Government and private power and energy sector

8. Jointly develop presentations with identified JV partners to investigate SPPL’s first suitable Chinese Syngas project

EXAMPLE PROJECTS - Business Model ComparisonsCommercial SYNGAS delivery starts with a small, safe, scalable, low-risk and minimal CAPEX project delivering SYNGAS to an existing commercial off-taker - most likely a coal-fuelled power station boiler - as a pre-requisite “market driven” business model. It is compared to an example full-scale commercial “resource driven” project. Please refer to the table below:

EXAMPLE  PROJECTS  -­‐  Business  Model  Comparisons

DESCRIPTION COLLIE  SYNGAS  PROJECT COOPER  BASIN  SYNGAS-­‐TO-­‐SNGBusiness  Model  Driver Market ResourceCommercialisation  Status Pre-­‐Requiste Full-­‐Scale  CommercialSite  Infrastucture Brown-­‐fields Green-­‐fieldsClients  or  Off-­‐Takers Power  Stations Natural  Gas  ConsumersLocation Collie,  WA Cooper  Basin  southwest,  QLDProduct  Sold SYNGAS  (co-­‐fuelling  in  coal  boiler) SNG  (synthetic  natural  gas  to  pipeline  spec)Resource  Access  Security Commercial  Agreement Lease  -­‐  Title  OwnershipSocial  Licence  to  Operate  Credentials Excellent DeliverableScalable  up  to  Large  Scale Yes  (resource  dependant) Yes  (resource  dependant)

PARAMETERS  (Estimates)Capacity  PJs  per  annum 12.7 25.0CAPEX  A$  million $110 $960CAPEX  A$  million  per  PJ  per  annum $8.70 $38.40Payback  in  years 8.5 7.5Resource  Life  years >80 >40Sales  Price  A$  per  GJ $3.60 $8.00OPEX  as  %  of  Revenue 42% 20%

OTHER  EXAMPLE  PROJECTS MARKET RESOURCESPPL  Identified 3 0Identifiable  Existing  Targets  Worldwide 2,300 ?New  Targets  in  Next  10  Years  (China  Only) 500 ?

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SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

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KEY PERSONNEL - Management

Aldous Hicks – Executive Chairman & CEO

Aldous has over 30 years business experience as a technology and software developer, project manager and mechanical engineer. In recent years he has developed water and material recycling technology. He developed SOHO custom PC database software and prior to that worked with Mannesmann Demag AG a multi-national German mechanical heavy engineering company. He was also a founding director of Anaconda Nickel Ltd. Aldous is the holder of a number of international patents. He has lived and worked in Europe and South America and speaks fluent German. Aldous holds degrees of Bachelor of Science (Physics major) and Bachelor of Mechanical Engineering from the University of Sydney

Neil Scott - Chief Commercial & Legal OfficerNeil Scott started practising law in New Zealand and moved to Sydney in 1981. He has worked with and been a partner in leading Sydney law firms, a principal in a trans-Tasman corporate advisory and investment banking firm, and is now principal of his own legal practice. Neil has practised in the natural resources sector throughout his career, with experience ranging from hard rock mining through coal mining to oil and gas. He has been director of a number of public-listed and private companies in the resources sector. Neil is a current member of the Australian Mining and Petroleum Law Association, the Petroleum Exploration Society of Australia, and the Underground Coal Gasification Association, and a past President of the Australia-New Zealand Business Council. He has presented and published numerous papers and articles on issues relating to regulation of in situ gasification and other aspects of the resource industry.

Rodney Silberstein – Chief Technology OfficerRodney Silberstein is an Australian engineer who has designed, built and managed facilities for the oil, gas, and mining sectors for over 30 years. He is the co-founder and Director or Engineering & Projects for ARV, which builds facilities for onshore and offshore oil & gas and mining projects, in Australia and SEAsia. The projects have included gas processing & compression, pipelines, structures and the majority of which are for the energy sector.

Mr Silberstein holds a Bachelor of Engineering (Civil) from UWA and a Graduate Management Qualification from AGSM (NSW), and has sat on various conference Boards such as Offshore Asia and SPE Applied Technical Workshop committees.

James Bell – DirectorJames Bell is an Australian barrister and solicitor who has practised as a commercial lawyer for 30 years, including 10 years as a partner in the national firm of Blake Dawson and 3 years as head of the Banking and Finance division of that firm in Sydney.

Mr Bell holds the degrees of Bachelor of Arts and Bachelor of Laws from the University of Sydney, where he is a Fellow of St Paul’s College. He is a director of several public companies and was a director of ASX listed Intec Limited, the owner of internationally patented Intec Process, which operates in the chloride medium to recover base and precious metals from ores, concentrates and residues in a cost effective and environmentally safe manner.

13SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

KEY PERSONNEL - Commercial and Technical

CONFIDENTIAL INFORMATION MEMORANDUM

SPPL Team

SPPL has twenty highly qualified and experienced commercial and technical personnel who are each delivering services to SPPL under a Service Agreement. Up until the first scoping study is funded all SPPL personnel are remunerated by way of the issue of share options only.

Project Development – five (5) personnel- two (2) in Australia- two (2) in UK- one (1) in Japan

Resource and Exploration – five (5) personnel- one (1) in NSW- one (1) in WA- one (1) in QLD - one (1) in UK - one (1) in US

Technology – six (6) personnel - Gasification (2), - Drilling (1), - Raw SYNGAS Processing (1), - Pipeline Delivery (1), - CO2 Capture, Sequestration & Utilisation (1)

Commercial Project Implementation – three (3) personnel in Australia (2) and UK (1)

Regulations and Legal – one (1) person in Australia

A Confidential Information Memorandum containing a Share Application Form is available. To obtain a copy please contact Aldous Hicks SPPL’s CEO & Executive Chairman at +61 407 412 382 [email protected]

14SYNGAS - Cheaper, Cleaner & Safer Energy from Coal

ContactSYNGAS Power Pty LtdACN: 154 245 575

Aldous HicksPh. +61 (0)2 48 722 744Mob. +61 (0)407 412 382

85-87 Main St, Mittagong NSW 2575AUSTRALIA

E. [email protected] W. www.syngaspower.com.au

DISCLAIMERThis presentation has been prepared to provide general and background information on the Company. It should not be relied upon as a representation of any matter that an advisor or potential investor should consider in evaluating the Company. It does not constitute an offer for securities in the Company. The Company (including related parties) makes no representations or warranties, express or implied, as to or endorsement of the accuracy or completeness of any information, statements or representations contained in this presentation, nor does it accept any liability whatsoever (including in negligence) for any information, representation or statement made in or omitted from this presentation.

JAPAN

COOPER BASINCOLLIE HUNTER

VALLEY

THE NORTH, UK

CHEAPER CLEANER AND SAFER ENERGY FROM COAL

SyngasPOWER

SUBSTANTIAL NEW ENERGY PROVINCES WORLD-WIDE (10s of 1,000s of PJs)