EmberClear BAML Global Energy Conference 2012


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Albert Lin, Chief Executive Officer of EmberClear, presented at the Bank of America Merrill Lynch 2012 Global Energy Conference on Tuesday November 13, 2012 at the Fontainebleau Hotel in Miami, FL.
The 2012 Global Energy Conference is an interactive and highly productive gathering of industry leaders and top institutional investors. Bank of America Merrill Lynch’s Energy Research team will host senior leaders from more than 80 companies from the US and abroad representing a cross-section of subsectors and investment opportunities.

For more information please visit www.emberclear.com

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EmberClear BAML Global Energy Conference 2012

  1. 1. November 2012 www.emberclear.comAlbert Lin, CEO www.emberclearenergy.com www.facebook.com/emberclear 1
  2. 2. READER ADVISORYIn the interest of providing EmberClear Corp.’s (“EmberClear” or “EMB”) shareholders and potential investors with information regardingEmberClear, including management’s view of EmberClear’s future plans certain statements contained in this document constitute forward-lookingstatements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-lookingstatements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan","intend", "should", "believe", "outlook", "potential", "target", "seek", "budget", "predict", "might" and similar words suggesting future events or futureperformance. All statements other than statements of historical fact may be forward-looking statements. In particular, this document containsforward-looking statements pertaining to, without limitation, the following: the development of the Good Spring NGCC Plant; the generation of 300MW of power; completing FEED of Good Spring NGCC; ability to sell electricity to be generated by Good Spring NGCC; the ability to securefavourable terms for the natural gas and purchase power agreement; the monetization of the Good Spring NGCC; the development of otheradvanced natural gas or coal energy projects; the satisfaction of conditions for the permits and approvals. With respect to forward-lookingstatements contained in this document, we have made assumptions regarding, among other things, the following: economic growth and electricitydemand; construction and development costs; project timing and economics; no material delays in the current timing for completion or ongoingprojects; financing will be available on terms favourable to the company; global financial conditions and governmental policy; no materialvariations in the current regulatory environment; and demand and political support for clean energy technologies. These risks and uncertaintiesinclude, among other things the following: delays in the monetization of Good Spring NGCC; completing the FEED of Good Spring NGCC;inability to sell electricity to be generated by Good Spring NGCC; failure to monetize Good Spring NGCC; inability to satisfy conditions of permitsand approvals; failure to identify other projects for project development business; risks relating to technology, suppliers, technological advances,competition, and counterparty risk; loss of key employees and consultants; regulation of industry; environmental, health and safety laws; changesin government policies; global financial conditions; the Company may be adversely affected by other economic, business and/or competitivefactors; the supply and demand for natural gas; the contract terms and pricing for natural gas; the terms of a purchase power agreement; theaccess to a natural gas pipeline; the price of alternative fuel sources; the Company’s need for additional funding to continue its developmentefforts; the competition for, among other things, capital, equipment and skilled personnel; the risks of developing a NGCC project; the Company’sability to continue to execute its growth strategies; and general economic conditions. Readers are cautioned that this list of risk factors should notbe construed as exhaustive. Although we believe that the expectations reflected in the forward-looking statements contained in this document,and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations willprove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can beno assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that thepredictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financialresults in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by suchforward-looking statements. The forward-looking statements contained in this document speak only as of the date of this document. Except asexpressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements,whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly 2qualified by this cautionary statement.
  3. 3. THE CHALLENGE High-Return Infrastructure Assets – Treacherous Journey? Variables “Below the Surface” are the ones to watchVisible Issues:Demand for New Energy Growing •  Rising Oil Prices •  Shrinking Coal & Hydro Industry •  Aging InfrastructureRisks mounting •  Unpredictable subsidies/programs •  Rising emissions, safety regsBelow the Surface:Financial Markets Looking for Security •  Yield pressures, Pension costs rising, T-Bill returns, Appetite for RiskIndustry Dynamics •  Permitting process is long & costly •  Natural Gas supplies stranded and prices de-coupled from oil
  4. 4. OUR SOLUTIONDeveloper Business Model: 1.  Develop – Site control, permits, contracts 2.  Sell – Development fund reimbursed at Equity Close, Balance of profits at Financial Close after construction 3.  Repeat – Returns on invested capital are very high with current market conditions Development with multi-year Rising Forward investment grade contracted returns Electricity Markets Abundant well-priced Natural Gas Record High Liquid Fuels Financial spread between start fuel and end product determines attractiveness to a buyer. Never been higher 4
  5. 5. STRATEGY Energy Project DeveloperEmberClear develops energy projects and sells them to Owners and Operators like PE Funds, Utilities, Governments, etc. "   Proven Leader: Permitting, feasibility engineering, Site Control "   Work with world-class organizations which meet most stringent lender criteria Anthracite Field "   Process, Relationships, Engineering designed to be replicated
  6. 6. COMPELLING ECONOMICS Electricity   Time  to   Cost  to   Developer   Buyer’s   Plant  in  USA   Permit   Permit   Profit   Return   (Years)   (%  Total   (%  Total   (Levered   Cost)   Cost)   IRR)   Industry   3.0+   7%-­‐12%   5%-­‐10%   8%-­‐12%   EmberClear   1.0   3%-­‐4%   Sale  Process   13%+   for  NGCC  1   underway   Anthracite FieldNOVEMBER 13, 2012:Announced GOOD SPRING NGCC 2 "   Same Technology/Configuration "   Same regional market "   Similar vendors relationships 6
  7. 7. GOOD SPRING NGCC11.  Proven : NGCC is a popular natural gas electricity generation technology2.  Low Cost : ~$350M for 300MW 1Q133.  Fast Construction : Simple configuration of known turbines Equity Close4.  Strong Political Support : Jobs, local gas, 3Q12- EMB Recoups low-emissions, need for capacity 4Q12 development costs EMB takes developer profit5.  Great Market: 10 year lows for natural gas (partial) with stable/rising wholesale electricity rates. Contracting Long Term owner acquires Bankers most/all equity Old retiring coal fleet Legal Hedging Term-Sheets Credit Analysis Gas Supply Electricity Off-Take Good Spring NGCC Advantages: EPC firm price, Permitting WRAP, Warranty •  Operating efficiency – Proximity to Hearings Safety pipelines and the grid PLUS Resource Usage utilizing the latest turbine Site-Control Discharges Emissions technology it is 20% more efficient Land Traffic than the average natural gas plant Rights of way Zoning Environmental (water, air, etc) and 38% more efficient than the Infrastructure logistics average coal fired plant •  SK E&C and other global leaders for off-take, gas supply, pipelines, legal, & banking 7
  8. 8. NATURAL GAS IN THE USA: MAJOR CHANGE IN FUNDAMENTALSUSA Natural Gas Production and Spot PriceLast 10 years to September 2012 8
  9. 9. SUPPLY OF NATURAL GAS IN OUR AREA CONTINUES TO GROWMarcellus Shale:Zero to #1 Shale EmberClear  Gas producing area Plants.  We  own   ~1,000  acres  in  of the USA in 4 3  locaDons  years Anthracite Field 9
  10. 10. SUPPLY GREATER THAN DEMAND Some areas have stranded supplies… Bakken •  Rapid supply growth with current and next generation technologies – Marcellus infrastructure and demand must catch upMancos - •  Competing ShaleLewis WoodfordSan Juan Basin Formations – Lower costs, closer to demand Barnett centers Eagle Ford …Leading to a willingness to contract output 10
  11. 11. POWER PRICES RISING1.  Coal-based power is decommissioning faster than expected due to regulations & age, that is 31% of our region (PJM Mid-Atlantic) is coal >40 years old and <400MW2.  Hydro-based power in a multi-year decline3.  Prices are rising when the economy is weak. What if the economy grows? = 27 GW total EmberClear Good Spring NGCC Source: DOE EIA 11
  12. 12. POWER PRICES RISINGCAUSEShrinking Supply, Slow New Builds, Tapped-Out excess Capacity.EFFECTDemand for new sources rising even with little economic growth PJM  West  Energy  Pricing    $/MWH  -­‐  Average   $58.00   $56.00   $54.00   NGCC  1     $52.00   Starts   $50.00   $48.00   $46.00   MulD-­‐Year   $44.00   Pricing  Favorable   $42.00   $40.00   $38.00   Year   2015  2016  2017  2018  2019  2020  2021  2022  2023  2024  2025  2026  2027  2028  2029  2030  2031  2032  2033  2034   Source: Ventyx and PJM 12
  13. 13. MANAGEMENT & BOARD Individual and Basic Background Governance & Operations Mining - Project Role DevelopmentAlbert Lin •  Over 20 years of Capital Market experience in •  Director of EmberClear Inc., Future Power, •  20 year LP of coal mining, CBMCEO & Chairman Toronto, New York, Boston and San Francisco as fund and former Director of JiWire, Inc., natural gas, & oil firms portfolio manager, analyst, founder, & management Nanoamp Solutions, and Centrinity Inc.David Anderson •  Over 20 years experience in the Capital Markets. •  CFO of MC2 Learning Systems (Centrinity) •  Bison Resources Ltd.CFO & Director •  Co-founder and Director of Bison Resources Ltd. and EmberClear Inc.Raj Suri •  Over 15 years of experience in the energy business •  Tax and Risk Director at Harvest Natural •  Multiple developer & energyPresident & Resources, Inc. firms including ExxonMobil,Director EnCana, & Harvest.Nick Cohen •  Land, mineral, technology and project development •  President of Career Development and •  Acquired multiple mineralChief Operating for gasification and advanced coal technologies Employment, Ltd. properties in NE USAOfficerKeith Calder •  Nearly 30 years of experience in the global mining •  Various operating management positions •  CEO of leading metallurgicalDirector industry at Rio Tinto coal mining company(Independent) •  Former CEO of Walter Energy (April – July 2011) and former President & CEO of Western Coal (December 2009 – April 2011)Harry Campbell •  Vice Chair of the law firm Burnet, Duckworth & Palmer •  Director of Delphi Energy Corp. and •  Extensive experience with oilDirector LLC Freehold Royalty Trust and gas transactions(Independent)Mike Anglin •  Former Interim CEO of Silver Standard Resources •  Director of Silver Standard Resources •  Former COO Base MetalsDirector Group, BHP Billiton(Independent) •  Interim CEO of Silver StandardPeter Kinash •  CFO of Replicon Inc. and former CFO of Wi-LAN Inc. •  Chartered Accountant with CanadianDirector distinctions & Director of Computer(Independent) Modeling Group Ltd. 13
  14. 14. CAPITAL STRUCTURE $CDN, unless otherwise notedShares Outstanding (millions) 72.52Price of Share October 31 2012 $0.49Implied Market Cap ($mm) $35.54Cash Balance Aug 2012 ($mm) $4.20Debt ($mm) 12% Convert Debenture $4.54Implied Enterprise Value ($mm) $35.88Convertible share potential @ $0.75 6,055,920Warrants from Convert @$0.75 2,703,300Options Out ($1.00 to $2.09; >50% @$2.09) 4,658,000Insiders/Management own (%) ~25%
  15. 15. SUMMARY Energy Project Developer with the Right Portfolio for the Market"   Simple Business Model with High Returns – Develop and sell plants using proven fast and low-cost permitting skills."   High Demand for Our Solutions – Low Interest Rate environment vehicles with high contracted multi-year returns for a low-risk proven asset has many interested buyers."   Repeatable Process – Good Spring NGCC 1 & 2 create unsubsidized value across the power plant life cycle. We own ~1,000 acres in PA region with similar infrastructure, relationships, and site characteristics"   Good Value – Recently financed. Stock still unknown in USA. Has shown history for high volumes of trading (see trading history)
  16. 16. Thank you!TSXV: EMB www.emberclear.com www.emberclearenergy.com www.facebook.com/emberclear ir@emberclear.com 16