Novo Energies Corporation[1]


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Novo Energies Corporate Presentation July 20,2009

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Novo Energies Corporation[1]

  1. 1. Protecting The Environment Today To Fuel Tomorrow ™ OTC BB: NVNC
  2. 2. Forward Looking Statement Forward-Looking Statement: Except for statements of historical fact, this presentation contains certain "forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on Novo Energies Corporation’s predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors that Novo Energies Corporation has little or no control. Such forward-looking statements are made only as of the date of this presentation and Novo Energies Corporation assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Recipients of this presentation should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in the filings of the company with the Securities and Exchange Commission from time to time.
  3. 3. 1. Novo Energies Corporation 4 2. Energy Outlook 7 3. Waste to Liquid 12 4. Financial Projections 22 5. Strategy and Plan of Action 29 6. Management and Technical Team 34 7. Corporate Information 39 8. Contact Information 40
  4. 4. 1.Novo Energies Corporation i. Novo Energies Corporation 4
  5. 5. Mission Statement To develop green energy solutions while maintaining a commitment to conserve energy, natural resources, and help reduce pollutants and unwanted materials. 5
  6. 6. Overview Novo Energies’ subsidiary, WTL Renewable Energy Corporation, has developed and designed a novel, effective, and environmental process to transform plastics and tires to low carbon liquid fuels such as diesel, gasoline and fuel additives. Novo Energies will build small local plants to transform plastics and tires to liquid fuels such as diesel, gasoline and fuel additives in an environmental and cost effective manner. 6
  7. 7. 2. Energy Outlook ii. Energy Outlook 7
  8. 8. The Energy Outlook World Marketed Energy Consumption World Marketed Energy Consumption “In the IEO2009 projections, total world consumption of marketed energy is projected to increase by 44 percent from 2006 to 2030. The largest projected increase in energy demand is for the non-OECD economies.” Energy Information Administration 8
  9. 9. Liquid Fuel Dominates Landscape World Marketed Energy Consumption World Liquid Consumption by Region & Country Group “For all the current talk about the imminent end to the petroleum age, hydrocarbons will continue to play the leading role in meeting the world’s growing hunger for energy for at least the next quarter of a century and probably well beyond.” (International Energy Agency 2009) 9
  10. 10. The End of Cheap Oil World Proven & Unproven Oil Reserves World Oil Prices in Three Cases According to the International Energy Agency, based on current demand/supply estimates, price per barrel of oil could fluctuate between $120 and $145 by the year 2030. 10
  11. 11. Need for Alternative Fuel Market • Persistent high oil prices • Global demand trends • Instability in the Middle East and Africa • Supply limitations • Enhanced environmental awareness • Growing political consensus • Tightening global and local regulatory restrictions • Energy self-sufficiency for economies • Increase national security • Create new jobs • Reduce trade and budget deficit • Generate economic interest and growth • Foster new technology development 11
  12. 12. iii.i 3. Waste To Liquid WTL: The Opportunity 12
  13. 13. Alternative Liquid Fuel Sources • Non-Renewable • CO2 emissions Coal to Liquid (CTL) • Non-Renewable • CO2 emissions Gas to Liquid (GTL) • High production cost • Need for Energy Crops (e.g. wood, food stock) Biomass to Liquid (BTL) • Elimination of waste Waste to Liquid (WTL) • Renewable source of energy • Extensive supply of materials NOVO Energies’ Solution - Waste to Liquid. The Green, Renewable Source of Energy 13
  14. 14. Waste to Liquid: Cost Advantage Gas to Liquid (GTL) 200 $80-$180/barrel 175 Production Cost (USD/barrel) 150 125 Waste to Liquid (WTL) $55-$75/barrel 100 Coal to Liquid (CTL) $35-$70/barrel 75 50 Biomass to Liquid (BTL) $60-$180/barrel 25 0 Comparative Liquid Energy Sources Technology Production cost between $55-$75 per barrel, makes Novo Energies’ technology and process superior to other methods and produces fuel products at lower cost than GTL and BTL. 14
  15. 15. Waste to Liquid: Cost Advantage 80,000 70,000 Biomass to Liquid (BTL) Capital Investment per barrel/day (USD) 60,000 $45,000-$50,000 Coal to Liquid (CTL) 50,000 $60,000-$70,000 40,000 30,000 Waste to Liquid (WTL) Gas to Liquid (GTL) $30,000-$45,000 $30,000-$50,000 20,000 10,000 0 Comparative Liquid Energy Sources Technology Low production cost and capital investment places Novo Energies as one of the leading and the highly cost effective solutions in the renewable energy market. 15
  16. 16. Waste to Liquid: US Mandated Requirements barrels (million) Source: 16
  17. 17. Waste to Liquid: Renewable Energy Novo Energies’ Two-Fold Advantage Production Removal of of low plastic and carbon fuel tire waste and fuel from landfills additives Remove Transform Produce Waste Waste to Liquid Fuel and Fuel Additives Novo Energies is committed to reduce waste, minimize the impact on the environment and generate renewable fuel for energy needs. 17
  18. 18. Novo Energies’ Solution Waste type Input for plant Output Plastic 15 tons/day 50-65 barrels/day of fuel or fuel additives Tires 30 tons/day Novo Energies’ process can be installed anywhere there is a minimum of 15 tons/day residual plastic waste and/or 30 tons/day tire waste. 18
  19. 19. Novo Energies’ Technology Plastics Novo Energies’ novel process and technology Gasification Thermolysis Fuel Tires 19
  20. 20. Supply of Feedstock • Plastic and tire waste continues to grow globally. • Landfills and other disposal methods are unable to handle the pace of waste generation. • Plastics and tires waste available at very low cost. • Novo Energies offers a solution to recycle plastic and tires and produce fuel. Extensive supply of waste plastic and tires at a very low cost allows Novo Energies to effectively recycle and generate energy. 20
  21. 21. Environmental Impact Plastic Process Tire Process Input • 98% reduction of waste during process • 98% reduction of waste during process By-Products • Non-hazardous and non-toxic • Carbon Black (30%) • Easy disposal of waste • Easy disposal of waste Treatment • No environmental damage • Carbon Black converted to fuel additives The two processes reduce waste from the environment making the energy generation process renewable and green. 21
  22. 22. iv. Plant Economics 4. Financial Projections 22
  23. 23. Economics: Plastic Plant EBITDA $ 790,450 Capital $2,900,000 Annual Income $2,216,250 USD Initial Investment Annual Expenses $1,425,800 Return on Investment: 27% 23
  24. 24. Projections: Plastic Plant Total installed Process (15 ton/day Plastics) Key Facts (per plant) Revenue: $2.2 million Yield: 4 barrels/ton EBITDA: $0.8 million Plastic removed from landfills: 15 tons/day 24
  25. 25. Economics: Tire Plant Annual Income EBITDA $ 1,621,550 $3,512,250 Capital $3,200,000 USD Initial Investment Annual Expenses $1,890,700 Return on Investment: 51% 25
  26. 26. Projections: Tire Plant Total installed Process (30 ton/day Tires) Key Facts (per plant) Revenue: $3.5 million Yield: 2.3 barrels/ton EBITDA: $1.6 million Plastic removed from landfills: 30 tons/day 26
  27. 27. Financial Snapshot Tire Process Plastic Process 30 tons per day of tires 15 tons per day of plastic (approx. 2600 tires per day) (approx. a 20’ truck load of waste plastic) produces daily produces daily 11,250 liters of fuel 9,850 liters of fuel 10.5 m.t of carbon black 3 m.t of steel Daily estimated income: $11,700 Daily estimated income: $7,380 * Based upon fuel and commodity prices as of May 2009, USD 27
  28. 28. Potential Carbon Credits Basis: 2.6 kg of carbon credits/liter 28
  29. 29. 5. Strategy and Plan Action v. Strategy & Plan of of Action 29
  30. 30. Strategic Plan of Action Install plants with a capacity of: Strategy • 15 tons/day (plastic) • 30 tons/day (tire) Outcome Produce 50-65 barrels of fuel or fuel additives per day. • Secure contracts with suppliers and establish plants close to Key success material supply (plastic, tires). factors • Plants will be located close to end product market. • Removal of waste from landfills with minimal environmental Novo’s impact. promise • Local job creation as a part of the local environmental solution. 30
  31. 31. Target Market Governments Private Sector Others • Municipalities • Trash haulers All government and private • Local governments • Material Recovery sector that needs supply • Military bases Facilities (MRF) of: • Small economies • Existing landfills • Large corporations • Synthetic diesel • Fuel additives 31
  32. 32. Timeline 15 Month Timeline • Continue evaluation of additional technologies and strategic opportunities. • Establish and implement strategic partnerships globally. Install first operating tire plant with a Install two Install two nominal input additional plants: additional plants: capacity of 30 Plastic (1) Plastic (1) tons/day. Tire (1) Tire (1) Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Install first Continue to install operating plastic and operate plastic plant with a and/or tire plants in nominal input strategic locations. capacity of 15 tons/day. 32
  33. 33. Growth Drivers The Energy Policy The U.S. and Act of 2005 Increasing Obama demand for administration and Canadian (“EPACT 2005”) governments established energy and higher the U.S. congress environmental are moving have committed minimum billions of dollars nationwide standards in towards a OECD countries renewable fuel for renewable requirements for energy projects production of have forced portfolio standard corporations to and a carbon cap which includes renewable fuels in grants and tax the U.S. – 7.5 find effective trade system. solutions for credits. billion gallons by 2012. waste disposal. 33
  34. 34. vii. Management & Technical Team 6. Management and Technical Team 34
  35. 35. Management Team André L’Heureux, President and Chief Operating Officer • Over 25 years of research and development experience in biotechnological and chemical related products. • Served as President of Chemco Inc., a chemical company specializing in industrial water treatment. • Graduated from Limoilou College, Quebec, Canada with a degree in mechanical technology. Antonio Treminio, Chief Executive Officer and Chairman • Over 15 years of experience as consultant to public companies advising on structuring, mergers and acquisitions, re-capitalization and financing with a focus on mining and the energy sector. • Served as President of Lusierna Asset Management Ltd., a private venture capital firm from 2003 until 2008. • Attended Loyalist College, Ontario, Canada. 35
  36. 36. Management Team Daniel Ringuet, Vice President - Strategic Planning • Over 17 years of consulting experience with public and private companies and successfully responsible for raising raised over 90 million dollars. • Served as President of Darin Capital, a private holding company based in Montreal, Canada. • Started career in 1982 as a stock broker with Geoffrion Leclerc, a Montreal based investment firm. Philippe Germain, Investor Relations Coordinator • Worked as consultant since 2006 with companies in North America and Europe with an emphasis on capital raising, accounting and communications. • Joined Darin Capital, a private holding company based in Montreal, Canada as a consultant in 2008. • Graduated from University of Laval, Quebec, Canada with a degree in economics and political science. 36
  37. 37. Technical Team Normand Thouin, Mechanical Engineer • Over 30 years of experience working in chemical and petrochemical operations. • Held directorial positions with Shell, Petro-Canada and Ultramar in Canada. President of GCM Consulting, a Montreal based engineering firm. • Graduated from Ecole Polytechnique de Montreal with a bachelors in mechanical engineering. Claude Bilodeau, Chemical Engineer • Over 32 years of experience with chemical and petrochemical operations. • Director of PTT PolyCanada, a division of Shell Canada. • Graduated from Ecole Polytechnique de Montreal with a bachelors in chemical engineering. . 37
  38. 38. Technical Team René Lamonde, Chemical Engineer. • Over 40 years of experience working in petrochemical operations. • Held directorial positions with Shell Canada. • Graduated from University of Laval, Quebec, Canada with a degree in chemical engineering and a business management diploma from HEC, Montreal, Canada. Guy Brouillard, Chemical Engineer. • Over 20 years of experience in chemical and petrochemical operations. • Held senior engineering positions with Dexter Chemical and DuPont Canada. • Graduated from University of Ottawa, Canada with a degree in chemical engineering. 38
  39. 39. Corporate Information Novo Energies Corporation Common Stock Listing: NVNC (US OTC Bulletin Board) Total Shares Outstanding: 24.9 million Transfer Agent: Auditor: Florida Atlantick Stock Transfer Inc. Myler & Company LLC T : +1 (954) 726-4954 T : +1 (732) 671-2244 F : +1 (954) 726-6305 F : +1 (732) 671-2266 Legal: United Sates Canada Sanders|Ortoli|Vaughn-Flam|Rosenstadt llp Boivin Desbiens Senécal, s.e.n.c. 501 Madison Avenue - 14th Floor 2000-2000, Avenue McGill College New York, NY 10022 Montréal QC H3A 3H3 Canada T : +1 (212) 588-0022 T : +1 (514) 844-5468 (ext. 242) F : +1 (212) 826-9307 F : +1 (514) 844-5836 39
  40. 40. Contact Information Novo Energies Corporation 750 Côte de Place d’Armes, Suite 64 Montréal, Québec Canada H2Y 2X8 Tel: + 1 (514) 840-3697 Antonio Treminio, Chief Executive Officer and Chairman Email: Daniel Ringuet, Vice President-Strategic Planning Email: Philippe Germain, Investor Relations Coordinator Email: 40