Renegy — Catalytica Energy Systems — Merger or Acquisition (June 2007)
28 slides from Renegy's merger presentation, Jun 11, 2007
Slide 1: Catalytica Energy Systems & NZ Legacy's Renewable Energy Divisions Propose to Combine to Create Renegy
Catalytica Energy Systems & NZ Legacy's Renewable Energy Divisions Propose to Combine to Create RENEGY The Future in Renewable and Clean Energy June 2007
Slide 2: 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 3: Transaction Summary
Transaction Summary V I S I O N Combine Two Companies Focused on - Clean and Green 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 generati
Slide 4: Transaction Highlights
Transaction Highlights Accelerates corporate growth Strategically 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, predictable commercial revenues and cash flow through long-term Power
Slide 5: 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) Renegy issues common shares to existing CESI stockholders and 26,418,334 common shares to Bob Worsley (NZ Legacy owner) i
Slide 6: Post-Transaction Management Team
Robert ("Bob") Worsley Chairman & CEO (NZ Legacy) Rob Zack Chief Financial Officer (CESI) Bill McMahon President, SCR-Tech (CESI) Scott Higginson SVP Business Development & Public Affairs (NZ Legacy) Mike Mattes VP Sales & Marketing, SCR-Tech (CESI) Kevin Lane VP Finance & Controller (CESI) Rich Wei
Slide 7: Post-Transaction Board of Directors
Bob Worsley Chairman & CEO Ricardo Levy Director (CESI Chairman) Richard Abdoo Director (CESI Vice Chairman) William Ellis Director (CESI Director) Howard Hoffen Director (CESI Director) Susan Tierney Director (CESI Director) TBD Director* *To be appointed by Bob Worsley; Expected to come from the r
Slide 8: Renegy: The Future of Clean Energy
Renegy Renegy Renegy T H E F U T U R E O F C L E A N E N E R G Y Clean Coal Technologies Green Renewable Energy IPP Energy IPP Energy IPP Clean Green
Slide 9: Lines of Business: Clean Coal Technologies
L I N E S O F B U S I N E S S Green Renewable Energy IPP Clean Coal Technologies
Slide 10: Growth Strategy
Green Renewable Energy IPP Growth Strategy Focus on creating multiple renewable energy projects to supply green, renewable and profitable power 24 MW SWMP plant under construction provides foothold in the market and foundation for growth Currently the leading renewable energy company in Arizona (bas
Slide 11: 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 12: Significant Market Potential
Green 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 (
Slide 13: Significant Market Potential
Green 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 - 20
Slide 14: 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 15: Other Factors Driving the Opportunity
CO2 emissions are expected to remain an issue Companies are beginning to act independent of government requirements Environmental Constraints Customer Needs and Wants Renewable Technology Advances Renewable energy costs continue to decrease and some options are competitive with conventional power ge
Slide 16: SWMP Biomass Plant
Green Renewable Energy IPP 24 MW Biomass Plant Located at site of Abitibi paper mill (Abitibi - Global leader in newsprint & commercial printing papers) PPAs secured with APS & SRP - entire power output pre-sold for 20 years! Transmission lines at facility Fuel sources 50% from paper mill sludge (Ab
Slide 17: SWMP Financial Forecast
Green Renewable Energy IPP SWMP Financial Forecast Long-term PPAs provide for predictable revenue streams over a 20-year period valued at more than $16 MM annually, including annual escalation clauses approximating 3% Once fully operational (expected in 1H 2008): EBITDA >$8 MM annually Cash flow >$3
Slide 18: Multiple Projects in the Pipeline
Green 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 California New facility opportunities in Arizona, the
Slide 19: Ideal Solar Resource
Source: Energy Atlas - Solar Energy for Arizona Site Green 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 20: Renegy Investment Highlights
Targeting a rapidly developing renewable energy market, estimated to grow from $55 billion in 2007 to more than $225 billion by 2016 Well positioned to capitalize on near-term revenue opportunities and accelerate growth SWMP plant provides strong foothold in the renewable energy market with leading
Slide 21: Lines of Business: Clean Coal Technologies
L I N E S O F B U S I N E S S Green Renewable Energy IPP Clean Coal Technologies
Slide 22: Clean Coal Technologies: Large and Growing U.S. Market
Clean Coal Technologies Large and Growing U.S. Market 2007 2011 Catalyst Regeneration 27 147 Total Addressable Market for Catalyst Regeneration ($ 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 23: 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 24: 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 25: Clean Coal Technologies Growth Strategy
Clean Coal Technologies Growth Strategy Enhance our production capabilities and increase throughput capacity Expand our production facilities consistent with sales volume Expand sales force and develop new sales channels Increase penetration of large, coal-fired utility market Increase awareness / g
Slide 26: 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 to include green, renewable energy projects Greater long-term growth prospects through access to substantially larg
Slide 27: 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 28: 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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