Origin Energy Limited · ASX:ORG
Origin Energy — Citigroup Alternative Energy Conference 2006
26 slides from Origin Energy's conference presentation, October 2006
Slide 1: Presentation to Citigroup Alternative Energy Conference October 2006
Presentation to Citigroup Alternative Energy Conference October 2006 1
Slide 2: Disclaimer
Disclaimer Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a recommendation to buy or sel
Slide 3: Origin has grown into one of the leading energy companies in Australasia
Since listing in 2000 Origin has grown into one of the leading energy companies in Australasia… Exploration and Production One of the largest •Over 2,436 PJe 2P reserves and annual production of 78 PJe suppliers of gas to •Diverse acreage position across Australia and New Zealand eastern Australian
Slide 4: Origin positioned in competitive segments of the Australian energy industry
Origin has positioned itself in the competitive (rather than regulated) segments of the Australian energy industry… Find Develop Produce Buy Sell … and by implementing this strategy effectively can better manage risk and enhance the range of growth opportunities Page 4 4
Slide 5: Provision of energy will continue to evolve with alternative energy
The provision of energy will continue to evolve with “alternative energy” driven by supply & demand pressures or social and economic imperatives Alternative Energy Energy sources or energy technologies which are not yet economic, but which can be made so through continued research and development or
Slide 6: History of investing in new or alternative energy applications
Origin and its predecessor companies have a history of investing in new or alternative energy applications… • Automotive LPG as an alternative fuel in the 60’s • Compressed natural gas vehicles • Geothermal “water furnace” technologies • LPG flame weeding technology (alternative to herbicides) • Hyd
Slide 7: Consistent approach to alternative energy technologies
Our approach to alternative energy technologies has been consistent across this time… • In the long term, is the new technology or source of energy capable of operating in a competitive market without subsidies? • Can Origin bring a competitive advantage to the development of this technology? • If s
Slide 8: Primary aim is to invest in technologies economic in their own right
Origin’s primary aim therefore is to invest in technologies which we believe will be economic in their own right… • Subsidies may be appropriate in the short to medium term to help industries “get off the ground” but are unreliable as they can be removed as quickly as they are introduced • Such subs
Slide 9: Internalising external costs and valuing carbon emissions
This approach to internalising external costs is evident in the debate on a mechanism for valuing carbon emissions… Solar PV Cost v Emission Intensity of Emerging Generation Technologies $250+ $120 $110 CCGT w Capture Geothermal (HDR) IGCC w Capture (Black Coal) IGCC (Black Coal) $100 New Entrant Le
Slide 10: Attempts to address emissions lack an over-arching federal framework
Various attempts have been made to address this issue but lack an over-arching federal framework... Non-selective emission reduction schemes • NSW Greenhouse Gas Abatement Scheme (NGACs) • ACT Greenhouse Gas Abatement Scheme (NGACs) • National Green Power Accreditation Program • Greenhouse Friendly
Slide 11: Origin has selected its investments carefully
With the lack of a consistent federal policy framework Origin has selected its investments carefully… Find Develop Produce Buy Sell LPG, CNG Coal Seam Gas SLIVER® Conventional solar panels Geodynamics Option to buy output Contracts to underpin Options not exercised development Wind Trading of regula
Slide 12: Early involvement in LPG and natural gas vehicles
An early area of Origin involvement was LPG… …and through subsequent developments natural gas vehicles Page 12 12
Slide 13: Coal seam gas as an alternative energy source
Coal seam gas provides another example where Origin moved into an alternative energy source several years ahead of other major energy companies… “In addition to natural gas, there are prospects for the commercial utilisation of Australia’s deposits of coal seam methane … However, there is significan
Slide 14: Coal seam gas reserves and production
Coal seam gas initially required subsidies as the industry developed in the US… US Coal Seam Gas Production Coal Seam Gas Reserves in Queensland by Company 1800 4000 1600 3500 Sales Gas Reserves (PJ) 1400 Other 3000 1200 QGC Bcf per year 2500 Arrow 1000 CH4 2000 Santos 800 Anglo 600 1500 Tipperary O
Slide 15: Proposed Spring Gully power station in Queensland
The proposed Spring Gully power station in Queensland will use Origin CSG in a fully integrated development… • 1000 MW gas fired CCGT in 2 x 500MW Proposed Power stages – low emissions, proven technology station site • 18 month full EIS on power station complete • Power station adjacent to existing
Slide 16: Investing in low carbon technologies; solar growing rapidly
Origin is investing in low carbon emission technologies to meet future energy needs – and solar is growing rapidly By Application 1,200 Grid Off Grid $8.0 • Record 53% worldwide growth 5-Year 1,000 Consumer $ Billion $7.0 CAGR 42%, fueled by Germany’s feed- in-tariff $6.0 $B 800 MW $5.0 600 $4.0 • E
Slide 17: SLIVER solar photovoltaic technology
Through initial research at the ANU Origin has developed its unique solar photovoltaic SLIVER technology… SLIVER cell Innovative Varied % Coloured Semi- packaging coverage background transparent Concentrator Windows Heritage Curved & Windows Portable Lightweight Mini Modules Advertising Roofing BIPV
Slide 18: SLIVER cell manufacturing plant at Regency Park
During 2004 a high technology plant for manufacturing SLIVER cells was built at Regency Park in South Australia We have a line of sight to 90W/wafer – effectively replacing the 72 cells in the panels shown by just 2 wafers’ worth of SLIVER cells Page 18 18
Slide 19: SLIVER technology is being developed rapidly
SLIVER technology is being developed rapidly 2007 70-150W panels on sale 15W 40W 70W 140W Dec 04 Mar 05 May 05 Jul 05 2nd Generation 2nd Generation Page 19 19
Slide 20: Seeking partnership to accelerate large-scale SLIVER production
Origin is seeking partnership to accelerate the large-scale production of SLIVER technology A partner must be a Invention Lab Pilot Scale great fit: • Culturally • Committed to SLIVER technology Origin Partnership • Global growth aspirations • Can act quickly Key Partner Capabilities • Financial str
Slide 21: Investment in Geodynamics geothermal technology
Origin has also chosen to invest in geothermal technology promoted by Geodynamics due to its unique characteristics… … and its fit with our upstream, generation and retail competencies Page 21 21
Slide 22: GreenEarth range makes Origin the leading green energy provider
In the Retail area our GreenEarth range of products has cemented us as the leading green energy provider… • Over 100,000 green energy customers on a range of products • First greenhouse-gas neutral natural gas offering • First solar-electricity retail product • First to launch a light globe giveaway
Slide 23: Advocacy role in climate change and carbon regime debate
Origin Energy has also taken an advocacy role in the debate surrounding climate change and a carbon regime… … as we believe that carbon is an inherent but unrecognised cost in the current global use of energy Page 23 23
Slide 24: Origin plays a significant role in alternative energy
While Origin is a mainstream energy provider in Australia we play a significant role in alternative energy… • Origin and its predecessor companies have a long history of involvement in alternative energy • We have clear criteria for investment in these areas • Some of those investments such as LPG,
Slide 25: Origin energy
Origin energy
Slide 26: For more information.
For more information. For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: [email protected] Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com.au and follow the prompts to the Investo
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