Renegy — Catalytica Energy Systems — Merger or Acquisition (May 2007)
24 slides from Renegy's merger presentation, May 8, 2007
Slide 1: Special Note Regarding Forward-Looking Statements
Special Note Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified
Slide 2: Transaction Summary
Transaction Summary V I S I O N Combine Two Companies Focused on - Clean Energy Production - To become: 1) A leading IPP of renewable energy in the U.S. - Targeting multiple renewable energy projects within the next five years 2) A premier service provider for the coal-fired power generation industr
Slide 3: Transaction Highlights
Transaction Highlights Accelerates corporate growth Strategically broadens and diversifies CESI's product and service offerings and business risk Access to large and growing renewable energy market, estimated to exceed $225B by 2016 Stronger, more predictable commercial revenues and cash flow throug
Slide 4: Transaction Structure
Transaction Structure Combine CESI with NZ Legacy's renewable energy divisions Combined company to operate under a new holding company to be called Renegy Holdings, Inc. Renegy issues common shares to existing CESI stockholders and 26,418,334 common shares to Bob Worsley (NZ Legacy owner) in exchang
Slide 5: Post-Transaction Management Team
Robert ("Bob") Worsley Chairman & CEO (NZ Legacy) Rob Zack Chief Financial Officer (CESI) Bill McMahon President, SCR-Tech Scott Higginson SVP Operations (NZ Legacy) Mike Mattes VP Sales & Marketing, SCR-Tech Kevin Lane VP Finance & Controller (CESI) Rich Weinroth Secretary & Corporate Counsel (CESI
Slide 6: Lines of Business: Renewable Energy
L I N E S O F B U S I N E S S Renewable Energy IPP Clean Coal Technologies
Slide 7: Growth Strategy
Renewable Energy IPP Growth Strategy Create multiple renewable energy projects over a 5-year period to supply clean, renewable and economical power 24 MW SWMP plant under construction provides foothold in the market and foundation for growth Additional opportunities through acquisition, construction
Slide 8: National and World Drivers
Political Instability Iraq war Terrorism and 9/11 fallout Foreign oil dependence - U.S. now imports over 60% Depletion of U.S. fossil fuels and deadlock over new U.S. resource development Venezuela and Sudan political issues Price Instability Escalating and unstable prices for natural gas OPEC fuel
Slide 9: Significant Market Potential
Renewable Energy IPP Significant Market Potential Renewable energy seen powering half the nation Industry report says wind, solar could make big contribution to energy supply by 2025, but only if policies change. By Steve Hargreaves, CNNMoney.com staff writer May 2 2007: 4:05 PM EDT NEW YORK (CNNMon
Slide 10: Significant Market Potential
Renewable Energy IPP Significant Market Potential Up to 635 GW of new renewable power capacity could be available in the U.S. by 2025. Source: ACORE (American Council on Renewable Energy March 2007 - Outlook on Renewable Energy in America (www.acore.org) New Renewable Power Capacity (2006 - 2025) Ne
Slide 11: RPS Drives Opportunity
Market-driven policy In place in 23 states plus DC* Requires utilities to purchase up to 30% of their electricity from renewable sources within the next 10 years Goal: Increased energy sustainability Percentage of renewable power required for purchase increases over time Penalties enforced for non-c
Slide 12: Other Factors Driving the Opportunity
Generation, and transmission and distribution (T&D) constraints exist today and will continue to grow Traditional solutions will no longer be adequate CO2 emissions are expected to remain an issue and companies are beginning to act independent of government requirements System and Environmental Cons
Slide 13: 24 MW Biomass Plant
Renewable Energy IPP 24 MW Biomass Plant Located at site of Abitibi paper mill (Abitibi - Largest Newsprint Manufacturer in the World) PPAs secured with APS & SRP - entire power output pre-sold for 20 years! Transmission lines close to facility Fuel secured 3 years of fuel will be stored prior to st
Slide 14: Multiple Projects in the Pipeline
Renewable Energy IPP Multiple Projects in the Pipeline Additional biomass opportunities New facilities as well as acquisition opportunities In discussions regarding the following near-term prospects: Biomass plant acquisition opportunity in the Northeast New facility opportunities in Arizona, the No
Slide 15: Ideal Solar Resource
Source: Energy Atlas - Solar Energy for Arizona Site Renewable Energy IPP Ideal Solar Resource The solar resource is some of the best in the U.S. and results in 6.1 - 6.5 kWh/m2/day of annual average insolation
Slide 16: Summary
Renewable Energy IPP Summary Targeting a rapidly developing renewable energy market, estimated to grow from $55 billion in 2007 to more than $225 billion by 2016 Well positioned to capitalize on near-term revenue opportunities and accelerate growth SWMP plant provides strong foothold in the renewabl
Slide 17: Lines of Business: Clean Coal Technologies
L I N E S O F B U S I N E S S Renewable Energy IPP Clean Coal Technologies
Slide 18: Clean Coal Technologies: SCR-Tech
Clean Coal Technologies SCR-Tech Headquarters, plant & warehousing facilities - Charlotte, NC Leader in cleaning, rejuvenation and regeneration of SCR catalyst Catalyst management & consulting services Optimize SCR system operation Achieve NOx compliance at lower costs Acquired in February 2004 Acqu
Slide 19: Clean Coal Technologies Executive Summary
Clean Coal Technologies Executive Summary Targeting a rapidly developing SCR catalyst services market in the coal-fired power generation industry Well positioned to capitalize on near-term revenue opportunities in an emerging marketplace Growing customer base includes some of the largest electric ut
Slide 20: Large and Growing U.S. Market
Clean Coal Technologies Large and Growing U.S. Market 2007 2011 Catalyst Regeneration 27 147 Total Addressable Market for Catalyst Regeneration ($ in millions)* EPA Clean Air Interstate Rule signed in March 2005 Requires a 60% reduction in NOx from 2003 levels by 2015 - will be phased in beginning i
Slide 21: Clean Coal Technologies Growth Strategy
Clean Coal Technologies Growth Strategy Expand sales force and develop new sales channels Increase penetration of large, coal-fired utility market Increase awareness / gain industry confidence in regeneration Further develop and maintain strong customer relationships Maintain commitment to superior
Slide 22: Transaction Conclusions
Transaction Conclusions Transaction is expected to be accretive to CESI shareholders by 2008 Accelerates corporate growth and diversifies business risk Broadens our clean energy vision and offers new direction for the company Greater long-term growth prospects through access to substantially larger
Slide 23: Risk Factors
Risk Factors Risks with respect to the combination of Catalytica Energy Systems and NZ Legacy's renewable energy divisions, as well as any future strategic transactions, include the risk that we will not be able to close the transaction, delays in the completion and commissioning of the SWMP plant;
Slide 24: Important Information and Where to Find it
Important Information and Where to Find it Renegy Holdings, Inc. will file materials relating to the proposed merger with the SEC, including a registration statement that will contain a proxy statement / prospectus. Investors and security holders of Catalytica Energy Systems are urged to read the de
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