For personal use only - ASX · "expects," "intends," "plans," "believes," "seeks,” "estimates,“...
Transcript of For personal use only - ASX · "expects," "intends," "plans," "believes," "seeks,” "estimates,“...
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.
2
For
per
sona
l use
onl
y
.
Leaf Energy is working with world class partners to produce bioenergy from waste products.
3
For
per
sona
l use
onl
y
Key Points
• Cellulosic bioenergy is moving forward rapidly, positioning
underway
• Quality Partnerships
• Syngenta: waste sugarcane (bagasse) to ethanol
• Texas A & M University: cheap/waste sugars to energy
• Queensland University of Technology: using our proprietary INPACT
technology to add valuable enzymes/proteins to energy processes
• Ground floor entry to the commercialisation of bioenergy in
Australasia
• Rights issue price values Leaf Energy at $1.4m
4
For
per
sona
l use
onl
y
Energy Outlook
• Cambridge Energy Research • Energy shortfall to reach 35 billion barrels per day by 2030
• Gap can’t be filled by fossil fuels
• Political uncertainty in supply exists
• Cellulosic bioenergy is a part of the solution: • Cellulose is most abundant organic material on Earth
• No feedstock “bubble” – waste biomass avoids the food/fuel debate, less volatile pricing
• Can produce a liquid transport fuel
• Renewable and carbon neutral
• Ethanol as a fuel releases 86% less carbon than petroleum
5
For
per
sona
l use
onl
y
Cellulosic Energy Outlook
• Cellulosic processes close to commercialisation • Demonstration plants are being built in USA, China, Canada and other
countries around the world
• Cost of enzymes dropping
• Positioning is underway
• Mitr Phol takeover of MSF Sugar (Maryborough) to invest in bio-energy
• Oil majors and big enzyme companies are involved
• US Venture capital funds are investors
• Energy pricing predicted to rise
• Government’s supportive and incentives available
6
For
per
sona
l use
onl
y
Cellulosic Energy in Australia
• Australians spend about $50 billion on energy each year
• 35% of all energy requirements are related to transportation
• Sugar cane has the potential to provide sufficient ethanol for 14% of Australia’s automotive gasoline requirement
• 10% ethanol mandate across Australia = 2,000 ml of ethanol or a $1,400 million market (@ 70 cpl to manufacturer)
• QLD and NSW alone = 1,000 ml or $700 million market
• Current ethanol mandates: NSW 6%, 40% of all petrol sold is E10
• Targets Biodiesel; WA 5% Vic 5%
• GM Australia have recently launched a flex-fuel passenger car which can run on 85% ethanol
7
For
per
sona
l use
onl
y
Break down
lignocellulose
Enzymatic conversion of
cellulose to glucose
Fermentation
of glucose to
ethanol
Sugarcane
sugarcane
juice
bagasse
stream Pretreatment
Sugar Fermentation Ethanol
Hydrolysis Fermentation Ethanol
Cellulosic ethanol from sugarcane bagasse
8
For
per
sona
l use
onl
y
• Collaboration between Syngenta, Australian Government, Queensland University of Technology and Leaf Energy
• Phase 1: 2008 to 2011; Phase 2: 2011 to 2014
• Combining Leaf Energy and Syngenta IP together with new joint IP
• Novel technologies covering the complete process; pre-treatment, hydrolysis and fermentation
• Leaf Energy has no outlays for research
• Leaf Energy rights to joint IP in Australasia
• Leaf Energy is also in the process of obtaining patents to joint IP in India, Thailand, the Philippines, Nicaragua and Guatemala
Syngenta Centre for Sugarcane Biofuels Development
9
For
per
sona
l use
onl
y
• Success on key fronts:
• “We have developed and demonstrated the pre-treatment process required
to modify biomass so it is more amenable to processing into fermentable
sugars and other higher value bio-commodities” (James Dale July 2011)
• “These results are the first demonstration of the expression and
accumulation of recombinant CBH1, CBH11 and EG in Sugar Cane and
represent a significant first step towards the optimisation of Cellulosic
enzyme expression in sugar cane for the economic production of
Lignocellulosic Ethanol” (Harrison et al, Plant Biotechnology Journal 2011)
• Commercialisation and scaling up activities continue at the Mackay
Renewable Bio-commodities Pilot Plant (a facility owned by and operated by
QUT and available for use by Leaf Energy) with Government support
Syngenta Centre for Sugarcane Biofuels Development
10
For
per
sona
l use
onl
y
Mackay Renewable Bio Commodities Pilot Plant
The Pilot Plant The Reactor The Fermenter
10,000 litres
Bagasse (sugar cane waste)
Fermentable sugars
Bioethanol, biodiesel
11
For
per
sona
l use
onl
y
• Debaryomyces hansenii (Dh) - a marine yeast that can produce
up to 70% oil by bodyweight
• Dh naturally produces and secretes oil
• Salt tolerant (up to 4M NaCl) – minimal sterilisation procedures
• Transformation has been achieved
• Grows on cheap sugars (sucrose, glucose and glycerol)
• Plan is to add a valuable enzyme/protein to oil production using INPACT and develop on a commercial scale
Texas A & M Collaboration
12
For
per
sona
l use
onl
y
• Preliminary proof of concept has been achieved • Rapid growth demonstrated • Glucose, sugar cane, bagasse extract to oil all shown • Oil accumulation quantified • Oil composition defined • Optimal culture conditions refined
• Further work required • Select enzyme/protein for inclusion in Dh • Efficiently transform Dh with chosen enzyme/protein • Enhance the commerciality of processes
Texas A & M Collaboration
13
For
per
sona
l use
onl
y
QUT Collaboration
• INPACT – patented protein expression system for plants and
potentially yeast on which Leaf Energy has world wide patents
• First protein Vitronectin has been produced a commercial
standard
• Adding enzymes/proteins to improve the economics of
bioenergy processes
• Other potential licensing opportunities
14
For
per
sona
l use
onl
y
Sugar cane waste (bagasse)
Fermentable sugar
Biodiesel or Ethanol
Marine Yeast
Bio Oil
Leaf Energy’s Technologies Working together
Waste Glycerol
Products:
Marine Yeast Modified by INPACT
High value proteins/enzymes
15
For
per
sona
l use
onl
y
Leaf Energy - Company Overview
• Formed by merger of Farmacule Bio-industries and AquaCarotene Ltd in mid-2010
• Name changed; New Board & management
• Legacy asset from AQL: 50% of gravel permits in Karratha
• Company has not yet been “re-launched” to capital markets
• Currently 28,205,687 shares on issue
• Current market cap of $2.0 m at current price of 7 cents (22/2/2012)
16
For
per
sona
l use
onl
y
Board and Management
Experience & Track Record
17
Mel Bridges Chairman
Over 30 years proven track record in technology & healthcare sector, commercialising a wide range of technologies and assisting the companies he is involved with to high end exits. Extensive Board experience. Director: Campbell Brothers, Alchemia, ImpediMed, Benitec, Tissue Therapies. Co-founder: Panbio, ImpediMed.
Ken Richards MD and CEO
Track record in managing, growing and transitioning high growth ASX and private companies. Has been involved in transactions totalling over $200m. As CEO of Norgard Clohessy Equity Ltd Ken produced a maiden before tax profit of $27m and took NCE from a start up capitalization of $60,000 to a capitalisation of $50m, when he retired as CEO. Previously CEO of AQL and was instrumental in the merger with Farmacule Pty Ltd to form Leaf Energy.
Dr Jay Hetzel Non-exec Director
Background in Biotechnology R&D. Co-founder of Catapult Genetics, a company sold to Pfizer. Dr Hetzel has held numerous board and executive positions, including Gene Technology and Biotechnology advisory roles to government and industry.
Charles Wilson Non-exec Director
Formally the Chairman of AQL. Engineer with extensive project and construction management experience.
Prof James Dale Chief Scientific Officer
Distinguished Professor, AO at QUT. World-renowned plant biotechnologist with more than 25 years in biotechnology R&D. Prior achievements include invention of FNC/Geneco technology which was sold to the world's leading gene chip company Affymetrix in 2000 in a multimillion dollar transaction.
Alex Baker ESP Bio (consultant)
Alex is a biotechnology professional and has over 18 years experience in industry including CEO roles. Alex recently lead Maverick Biosciences into the cell culture field increasing its understanding, capability and growth potential in the bioactives space.
For
per
sona
l use
onl
y
Rights Issue
• 1 for 1 to raise $1.4 m
• Non renounceable, not underwritten and no minimum
• Current shareholding: • Board and management: 25%;
• QUT: 15%;
• Mesoamerica Sugar Corp 5%
• Funds usage • Fund research into Dh as a production platform for bio-energy
• Fund further work on commercialisation of our technologies
• Progress a feasibility plan for the production of bio-energy
• Provide Leaf Energy with working capital
• Board and senior management taking fees and salary as shares (see notice of meeting to be held 26 March 2012)
18
For
per
sona
l use
onl
y
Investment Summary
• Quality partnerships: Syngenta, Texas A & M & QUT
• Technology: novel, protected and commercially focused
• Energy is an attractive and scalable business
• No feedstock “Bubble” – Waste biomass avoids the
food/fuel debate, less volatile pricing
• Strong Board and scientific management
• Rights issue price values company at $1.4m
• Ground floor entry to the commercialisation of bio-
energy in Australasia
19
For
per
sona
l use
onl
y
Thank you.
Contact:
Ken Richards
Managing Director
Email: [email protected]
Mobile: +61 403 385 051
Dr Mel Bridges
Chairman
Email: [email protected]
Mobile: +61 413 051 600
20
For
per
sona
l use
onl
y