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Headwaters Coal-to-Liquids Technologies. Theo L.K. Lee Headwaters Technology Innovation Group 1501 New York Avenue Lawrenceville, NJ Nov 11/04 Washington D.C. Corporate Vision. At Headwaters Incorporated, our singular focus is to create value through innovative advancements
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Headwaters Coal-to-LiquidsTechnologies Theo L.K. Lee Headwaters Technology Innovation Group 1501 New York Avenue Lawrenceville, NJ Nov 11/04 Washington D.C.
Corporate Vision At Headwaters Incorporated, our singular focus is to create value through innovative advancements in stewardship of natural resources throughout the world.
Headwaters at a Glance Diversification Across the Coal Value Chain
Corporate Fact Sheet • Pro forma TTM revenues 30JUN04: $834 million • Market capitalization >$1 billion • 4,000 employees • Headquartered near Salt Lake City, Utah • Publicly traded company (NASDAQ symbol: HDWR) • Website: www.hdwtrs.com
Headwaters Technology Innovation 6 nm Heavy Oil Upgrading Efficiently upgrades heavy oils such as oil sand bitumen into light syncrude using a nanocatalyst Direct Coal Liquefaction End result of $3.6 billion US government funded R&D programs to convert coal directly into oil Indirect Coal Liquefaction Fischer-Tropsch catalyst and process for converting coal into ultra-clean transportation fuel and chemical feedstocks Nanotechnology Nanocatalysts with extraordinary performance charact- eristics used in manufacturing chemicals, fuel cells and emissions control
Direct Coal Liquefaction • Convert low cost coals to clean transportation fuels and petrochemical feedstocks • 1st license to Shenhua Group’s Inner Mongolia pioneer plant (50,000 BPSP from12,800 TPSD of coal) • $26 to 30/bbl equiv. crude oil price • $2.2 billion capex • 2nd project – feasibility study for Oil India Ltd. • Enquiries include – • South Africa, Mongolia, Philippines, United States
Indirect Coal Liquefaction • Gasification followed by Fischer Tropsch Synthesis to form ultra clean straight hydrocarbons • Lower efficiency as a standalone plant • Improved efficiency with poly-generation configuration • License through FT Solutions LLC. (JV with Rentech, Inc.) • Completed two feasibility studies for China • Started FEED of an ammonia revamp project in Illinois • Two other FS in progress in U.S.
FT Diesel – an ultra clean fuel Cetane No. >70 Zero Sulfur No aromatics
Emissions Relative to a Typical Diesel Fuel (Percentage) FT Diesel Exhaust Emissionsare Lower than Typical #2 Diesel
Cost Estimates for FTD Coal & Coke Current CARB Diesel Natural Gas 63 FOB Diesel Cost ($ Barrel) 42 21 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Feedstock Cost ($/mmbtu)
Under the current high oil price and unstable supply scenario, coal-to-liquids is a viable option for providing clean transportation fuels and petrochemical feedstocks in the United States