Presentation to 2009 Annual General Meeting 20 November 2009 Greg Solomon Chairman November 09 1
Disclaimer Forward-looking Statements and Projections Whilst reasonable care has been taken in compiling the forward projections in this presentation, they necessarily are based on many assumptions and factors that are beyond the control of the company and accordingly there is no representation or warranty given that these projections will be achieved. There are many uncertain risk factors, particularly related to the Indian market, which are beyond the control of the company and which could significantly impact on both the prices that are achieved, the sales turnover and the production and operating costs. These risks include delays in the rollout of the Natural Gas pipeline system and the accessibility of Natural Gas in India, limitations in the available quantities of Natural Gas, increases in the price of Natural Gas, reduction in the price of alternate fuels such as diesel, changes in Indian Government or Indian Supreme Court policies and rulings, market competition, shortages in raw materials and labour, increases in cost of labour and materials, national or international political or economic instability, problems with reliability of equipment produced and sold, warranty claims, currency fluctuations, restrictions on foreign investment, disputes with potential joint venturers, market resistance to the products or services offered, lack of available capital or finance, restrictions on international travel and similar factors beyond the control of the company. For these reasons, all potential investors and others must satisfy themselves on the reliability of these forward looking projections before acting upon any information provided to them in relation to forward looking projections, and neither the company nor any of its officers make any representations, warranties or commitments that these or any other forward projections will necessarily be achieved. November 09 2
Corporate Objectives Overview - to develop and market globally clean energy technologies with a focus on promotion of hydrogen - to promote the company s various energy production assets as separate entities/ vehicles in which Eden will remain as a significant shareholder Existing Clean Energy Products and Technologies -Hythane -apremiumblendofnaturalgaswith7%(byenergy)hydrogen - OptiBlend-dual fuel kit for engines using diesel and natural gas or Hythane - Hydrogen fueled internal combustion engine -ProductionofhydrogenandcarbonfibresfrommethanewithoutCO 2 November 09 3
Corporate Structure CORPORATE Eden Energy Ltd (AUSTRALIA) HOLDING Eden Innovations Ltd (Ireland) Energy Assets OPERATIONAL Hythane Company LLC (USA) Eden Energy India Pvt Ltd (India) Coal Bed/Seam Methane (Wales, UK) (to be sold or joint ventured) Natural Gas South Australia (AUS) (to be sold or joint ventured) Terratherma (Geothermal) South Australia (AUS) (to be sold or joint ventured) November 09 4
Existing Clean Energy Products Hythane -a high efficiency, ultra-low emission, premium blend of natural gas containing 7% hydrogen (by energy) -products include blenders for mixing the gas, designing and building the refueling stations, engine calibrations OptiBlend Dual Fuel -a proprietary dual fuel system to operate diesel engines on a mixture of up to 70% natural gas/ propane and 30% of the diesel Hydrogen IC Engine -a US patented, ultra-high efficiency, ultra-low emission internal combustion engine November 09 5
Emerging Clean Energy Products Hydrogen and Solid Carbon /Nantotubes Production without CO 2 - a Joint Venture with University of Queensland (Eden-50%) -a new agreement with a major third party to fund the up-scaling to prototype is being negotiated OptiBlend Dual Fuel Kit Improvements -improved design to economise dual fuel kit is being developed November 09 6
Markets for Existing Product Range Hythane and OptiBlend Dual Fuel Current Markets India,USA Possible Mid-Term Future Markets China, Malaysia, Bangladesh, Australia, Singapore, Middle East, South America Hydrogen Internal Combustion Engine Possible Mid-Term Future Markets India, China, USA November 09 7
Major Drivers for Hydrogen Markets Environmental Economic -Local air pollution - Concern for global climate change -Comparative fuel prices - Comparative efficiency of application - Public health costs - Carbon trading Energy independence - Push to end dependence on oil and develop green alternatives Renewable energy -Need to develop renewable energy with H2 as energy carrier Political -Progressive leadership or younger voter pressure November 09 8
Fundamental Dilemma Hydrogen Infrastructure - How to fund hydrogen infrastructure before hydrogen fleets exist? - How does a hydrogen fleet develop without available infrastructure? The Solution - Hythane - existing natural gas fleet uses the new hydrogen infrastructure November 09 9
H 2 + CH 4 Hythane Hythane -the transitional fuel Significantly lower pollution / Higher efficiency Low-cost, premium blend of Hydrogen and Natural Gas: 5-7% H 2 (by energy); 20% H 2 (by volume) Ultra-low emissions 50% No x /CO -meets 2010 Indian emission standards High efficiency - 10-15% increase in efficiency with suitable engines Low cost-only software changes to suitable engines Anticipated cost 10% more than natural gas Complies with existing natural gas safety standards November 09 10
The Hythane Process Natural Gas Pipeline CH 4 Reformer H 2 Compressor Hythane Blender Storage Tanks Low pressure Blending Option Shown November 09 11
Storage Volume Comparison CNG, 300 km H 2,<70 km in same tank H 2, 300 km 4.5 times more volume Hythane, 300 km 1.2 times more volume November 09 12
Hythane - the leveraged use of Hydrogen Case 1: Convert 7 CNG Vehicles to Hydrogen Hydrogen Vehicle CNG Vehicle Hythane Vehicle Result: 7% NOx reduction, 7% hydrogen energy Case 2: Convert 100 CNG Vehicles to Hythane Result: 50% NOx reduction, 7% hydrogen energy November 09 13
Denver Hythane Emissions Results HOT 505 EMISSIONS, GRAMS/MI. 3 2.5 2 1.5 1 0.5 0 NG HY NG HY NG HY THC CO NO x Output of pollutants (grams per mile) of Natural Gas versus Hythane. Source: Colorado Department of Health November 09 14
Hythane Bus Projects Montreal 1993-19951995 California 2002-20042004 November 09 15
Existing Natural Gas Markets Support Hythane Hythane complies with existing natural gas safety regulations CNG no longer experimental - over 3 million vehicles globally Existing CNG/LCNG vehicles can easily be converted to operate on Hythane Hythanecan be deployed at existing CNG and LCNG stations Natural gas reformers and Hythaneblending equipment is available Customer base already accustomed to using a gaseous fuel November 09 16
Eden in India WHY INDIA WILL ADOPT HYTHANE Extreme urban air pollution -Indian Supreme Court identified 20 cities for natural gas Government support - funded First Public Hythane station Delhi 2009 The 2006 Indian hydrogen roadmap proposes Hythane as transitional fuel Natural Gas is far cheaper (per GGE) than diesel (up to 60% cheaper) Increasing supply of natural gas 5Mtpa to 25Mtpa over 5 years, starting April 2009 National rollout of natural gas pipelines City Gas distribution networks in 8 cities increasing to 28 medium term and 300 longer term 5 new City Gas licences issued in April 2009 2008 India adopts Hythane as Natural Gas- regulations planned for August 2009 Natural gas already a major vehicle fuel GAIL plans 2000 further gas stations November 09 17
First Public Indian Hythane Station Delhi January 2009 November 09 18
INDIAN GAS SUPPLY Domestic Gas Eastern Cost Upcoming LNG Terminals Dhabol (5 MMTPA) Kochi (2.5 MMTPA) Existing LNG Terminals Dahej (5 to 10 MMTPA) Hazira (2.5 MMTPA) Cross Border Pipelines Iran-Pakistan-India Turkmenistan- Afghanistan-Pakistan- India DAHEJ I & II 10 MMTPA IRAN HAZIRA 2.5MMTPA TURKMENISTAN DABHOL 5 MMTPA DABHOL KOCHI 5 MMTPA DAHEJ HAZIRA KOCHI Courtesy of Gas Authority of India NEW GAS DISCOVERIES LNG TERM s- Upcoming LG TERM s- Existing TRANS NATIONAL P/L November 09 19
INDIAN GAS INFRASTRUCTURE CURRENT & FUTURE NANGAL BHATINDA DAHEJ I & II 10 mmtpa* HAZIRA 2.5 mmtpa DABHOL 5 mmtpa MANGALORE 2.5 mmtpa BARMER RAJKOT BHARUCH MUMBAI KOLHAPUR GOA DELHI BAREILLY GURGAUN AURAIYA MATHANIA AGRA LUCKNOW JAGDISHPUR KANPUR GWALIOR PHOOLPUR AHMEDABAD KOTA JHANSI UJJAIN VIJAYPUR BARODA SURAT PUNE HASAN MANGLORE KANJIKKOD KOCHI 5 mmtpa SOLAPUR COIMBTORE BHOPAL HYDERABAD BANGLORE RAJAMUNDRY GAYA VARANASI NELLORE TUTICORIN CHENNAI BOKARO CUTTACK TIRUCHCHIRAPALLI PATNA KOLKATA AGARTALA BHUBANESHWAR KRISHNAPATNAM KAKINADA VIJAYAWADA DAMRA ENNORE 2.5 mmtpa DISPUR LNG Courtesy of Gas Authority of India Existing Upcoming Transmission Pipelines City Gas/ CNG Existing Planned LNG Terminal Existing GAIL s Planned Pipeline RIL s East West Pipeline RIL s Planned Pipeline GSPC s Planned Pipeline November 09 20 INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
GAIL CITY GAS / CNG Growth From Existing Cities to 28 Cities More Cities as Pipelines Reach New Areas Target - 230 Cities (Longer Term) CHANDIGARH PANIPAT LUDHIANA AMRITSAR DELHI GURGAON FARIDABAD NOIDA BAREILLY GHAZIABAD JAIPUR MATHURA JODHPUR LUCKNOW AGRA VARANASI UDAIPUR NEEMRANA- KANPUR BHIWADI ALLAHABAD KOTA GWALIOR PHOOLPUR JHANSI UJJAIN RAJKOT AHMEDABAD INDORE SURENDRANAGAR VADODRA SILCHAR PATNA JHARIA AGARTALA KOLKOTA Courtesy of Gas Authority of India MUMBAI NAVI MUMBAI THANE PUNE SHOLAPUR BANGALORE HYDERABAD CHENNAI VIJAYWADA RAJMUNDARY City Gas/ CNG Existing (8 cities) Planned (28 Cities) November 09 KOCHI 21
OptiBlend System Description Applicable to a wide range of diesel engine applications Displaces over 70% of diesel fuel with natural gas in diesel generators Numerous sensors feedback to PLC Allow maximum diesel displacement Maintain superior engine protection Payback period of less than 1 year for larger generators First three Indian sales installed up to 70% diesel displacement achieved November 09 22
Huge cost savings OptiBlend Market Drivers Dramatic cost savings in full and part time applications Payback period less than 12 months for larger gensets Emission reduction Over 60% NOx reduction Up to 10% reduction in CO 2 Over 60% increase in backup power capacity Reduction of dependence on diesel deliveries Reduction of diesel tank maintenance for standby applications November 09 23
OptiBlend-Typical Power Production Costs Assumptions: Diesel = $1.25/liter, Natural Gas = $10 mmbtu, Cummins K19 Genset November 09 24
OptiBlend-Typical NOx Production Assumptions: Diesel = $1.25/liter, Natural Gas = $10 mmbtu, Cummins K19 Genset November 09 25
Major System Components Gas Train Knock Detector Mixer PLC Vibration Sensor November 09 26
Advantages of OptiBlend No internal engine modifications No OEM control system modifications Maintains OEM power output Optimizes displacement at all loads -<70% natural gas achieved Capable of multiple alternative fuels Methane, Propane Methane and Hydrogen Reverts to 100% diesel if alternative fuel supply fails Payback period of less than 1 year for larger gensets November 09 27
Timeline Eden in India Target Hythane and Dual Fuel Timetable Anticipated Action 2009-2010 First Public Hythane Station opens- built by Hythane Co First L&T manufactured hydrogen reformer completed Finalise Government regulations for vehicles and stations. Demonstration Hythanebus projects Gujarat and Mumbai Demonstration dual fuel kit projects Assam, Mumbai, Gujarat Start commercial rollout of OptiBlend Dual Fuel kits. 2011 2013 Start commercial rollout of Hythane buses. Ramp-up to commercial rollout of OptiBlend Dual Fuel gensets Demonstrations on Hythane/ Dual Fuel locomotives 2013 & Beyond Full commercial rollout of Hythanefor all vehicles, gensetsand locomotives November 09 28
Production of H2 and Carbon Nanotubes from CH4 New process developed in JV with UQ Patent applications lodged No CO2 H 2 becomes a very high value byproduct Produces hydrogen and single and multi-walled carbon nanotubes and carbon fibres - tensile strength up to 200-300 times steel -approx 17% the weight of steel - great electrical / structural qualities - potential replacement for steel/aluminium in vehicles, aircraft and many other applications Joint venture with Indian major under negotiation November 09 29
Energy Assets COAL SEAM METHANE/ CONVENTIONAL GAS (WALES, UK) Eden Energy Limited -50% Joint venture ( with Coastal Oil and Gas) -11 Licences -5% Joint venture ( with Coastal Oil and Gas / Centrica)-4 CSM licences -50% Joint venture/farm-in ( with Coastal Oil and Gas )-4 NG Licences 18 Petroleum Exploration and Development Blocks in Wales, SW England and Kent Targets -Coal Seam Methane - Abandoned Mine Methane - Conventional Natural Gas -Shale Gas Total area 1800km 2 Digitised Welsh coal mine data High UK Gas Prices New listed company planned November 09 30
JV with Centrica / Coastal Oil and Gas Eden- 5% interest( in CSM) Energy Assets S WALES COAL SEAM METHANE (CSM) JV -4 PEDLS First CSM well good gas content and permeability, average gas compositions, gas content increasing steadily with depth from 1m 3 /tonne to >9m 3 /t Second CSM well completed, permeability testing May-08, up to 18 seams, each up to 4m thick, well completion at 810m, initial in situ gas contents up to 11.4m 3 /t(dry and ash-free), average of 8.4m 3 /t Third CSM well incomplete result following unexpected upthrust basement Farm-In obligations complete on PEDL 100, 148 and 149 for CSM PEDL 100 - Preliminary resource- 380-670Ptj ( approx 380-670 Bcf) November 09 31
Energy Assets NATURAL GAS (SOUTH AUSTRALIA) Location: Proximal to Olympic Dam mining Seismic Drill target identified Intention to combine with CSM in new gas company- discussions commenced Drilling planned within 18 months Higher risk ( Proterozoic age), but very close to huge industrial gas market (Olympic Dam) November 09 32
GEOTHERMAL- SOUTH AUSTRALIA 4 project areas, 15 licences/ applications GEL 185-adjacent to Geodynamics Energy Assets GEL 185-JV with Origin Energy-$1m + $500k expenditure for 70%. Planned float of Terrathermaon the ASX November 09 33
Greg Solomon Executive Chairman Level 40, Exchange Plaza, 2 The Esplanade, Perth, Western Australia, Australia. 6000 Telephone +618 9282 5889 Mobile +614 0206 0000 Fax +618 9282 5866 Email gsolomon@edenenergy.com.au Website: www.edenenergy.com.au November 09 34