liberty gtl, llc - amazon simple storage service · liberty gtl is dedicated to utilizing low-cost...

1 Proprietary & Confidential

Liberty GTL, LLC

Investment Presentation May 2012


Confidentiality and Representation Statement

The Memorandum and Presentation contains information regarding the technology, business, and operations of Liberty GTL, LLC. This document is furnished on a confidential basis and is to be used solely to enable prospective investors or lenders to determine whether to proceed with a financial commitment to Liberty GTL.

This Memorandum and Presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this Memorandum regarding the Liberty GTL, including the potential commercialization of the technology, cost data, technical specifications and processes, product inputs and outputs, information regarding the Liberty GTL’s 10 Plant (which is a concept only), and potential markets are “forward-looking statements.” These forward-looking statements are commonly identified by the use of such terms and phrases as “will be able to”, “expected”, “provides”, “makes”, “believes”, “potential”, “supports”, “is designed to be”, “projected to be”, and “could be”.

This document has been prepared by Liberty GTL. Neither Liberty GTL, LLC or its principals make any representation or warranty as to the accuracy or completeness of the information contained herein. This Memorandum is being provided only to sophisticated investors (SEC – REG D investment candidates). Prospective investors or lender s should conduct their own investigation of this opportunity.

Nothing contained herein is, or should be relied upon as, a promise or representation as to the future.

All requests for information or clarification should be directed to:

Mark Engeberg

(214) 289-2721 telephone

[email protected]


State of the Union

“And nowhere is the promise of

innovation greater than in

American-made energy.

This country needs an all-out

strategy that develops every

available source of American

energy. A strategy that’s cleaner,

cheaper, and full of new jobs”.

President Barack Obama

State of the Union Message

January 24, 2012


Snapshot of the Business

Liberty GTL is dedicated to utilizing low-cost natural gas resources to produce high-quality Fischer-Tropsch Liquid (FTL) Diesel fuel. The company is set to take advantage of revolutionary proprietary technology to develop small-scale, mass-produced, modular synthesis systems that are readily transportable. Our ten barrel-per-day modular units will be able to take natural gas from virtually any source and economically produce FTL that has been certified to meet all EPA diesel fuel requirements. This technology is important for the following reasons: 1) it produces cost effective fuel; 2) the units are distributed and moveable; and, 3) can be used by the military for field deployable fuel.

Today, Liberty GTL is seeking $60 MM to build the first ten (10) barrel per day

FTL Unit that will produce finished fuel at an economical price.


Management Team

Business team experienced in both entrepreneurial ventures and large-scale corporate management. Doug Gordon – Celanese Chemicals – VP & General Counsel Mark Engeberg – SunMark (Solar), Motorola –Finance/Marketing

Technical team with extraordinary expertise in Fischer-Tropsch technology, as well as management of product development programs for government, major corporations and start-up ventures. Joe Maceda – Gibbs Energy (Conoco Phillips), H Power (Fuel Cell) Dr. Nicholas Vanderborgh – Blue Star GTL, Los Alamos Laboratory

CV’s found later in the presentation


Request for Financing (Uses)

Liberty GTL seeks investment of $60 million to fund three (3) years

of operations and product development.

Expected cost of final engineering,

catalyst refinement, facility set-up and

fabrication of initial 10 barrel per day units……………$32 million

Salaries, travel and business expenses……….…..…$5.5 million

Technology Acquisition…………………………….…..$2.5 million

Contingency…………………………………………….…$10 million

Retained Capital to fund future operations………….…$10 million


The Economics


Pro Forma

Please note: The initial funding is to develop the technology. A follow-on offering will be required to build subsequent units/ facilities.

Old Technology with a New Twist


LIBERTY PRODUCES “CLEAN” DIESEL At efficiencies never before seen using Fischer Tropsch processes from natural gas.


Modular - Fischer Tropsch Liquids

Liberty GTL’s Technology represents the most

significant advance in the production of liquid fuels

in 90 years.

Prototype GTL facility 2 bpd Invented & built by Dr. Nicholas Vanderborgh, Liberty GTL


Brief History of Fischer Tropsch Liquids

1920s: Chemical industry in Germany creates technology (Fisher-Tropsch),

based on coal-derived synthesis gas. Both iron-based and cobalt-based catalysts explored.

1940s: During WWII, Germany and Japan focused on developing large-scale

coal-based systems to make liquid fuels.

1956: South Africa introduces commercial coal-based FTL technology

2000s: SASOL, Chevron, Exxon & others announce GTL plants in Qatar.

2004: Liberty begins development of small-scale FTL plants.

Franz Fischer (left) and Dr. Hans Tropsch (right)


Design Advantages

Liberty’s modular design presents significant

operational advantages over other GTL Options

Capital costs are far less. Outage of one unit does not shut down entire operation. Modules can readily service remote locations. Modules can be moved from one location to another.


Controls &

Electrics

Controls &

Electrics

Compressors &

Pumps

Compressors &

Pumps

FT B

FT A

B A B

Hex A

FT A FT B

A

Hex B

SMR +

Methanator

Top View

Side View

40’

8’6”

8’

Modular 10 bpd - ISO Container

Liberty’s equipment will be built inside ISO containers


Modularization: Number up Conventional: Scale up

Key Benefit to Modular Construction


Technology Shift

Traditional FTL 1) Centralized

2) custom engineered

3) long project development & commissioning time

4) large distribution cost

5) any failure means the entire refinery shuts down

6) chemical engineering scaling factors

Modular FTL 1) Distributed

2) engineered for mass-production

3) minimal site labor

4) short lead-times

5) factory built & tested

6) minimal distribution costs

7) modular design allows for high system reliability


Benefits of Liberty’s FT- Diesel

BENEFITS:

Inexpensive fuel

No engine modification

Sulfur free – lower emissions

Meets all fuel specifications:

-Cloud point

- Lubricity

- Cetane

- Aromatic content


Cost Structure

NATURAL GAS AT $4 MMBTU, COST PER GALLON: NAT GAS* $0.89 OP EX $0.31 CAP EX $0.47 TOTAL COST** = $1.67 gallon * Natural Gas used to make one gallon FTL **Not including taxes


Value Proposition

FT Diesel Price vs. Natural Gas Price

Natural Gas Price ($ per MMBTU)

FT

Die

se

l (

$ G

allo

n)

$1.28

$1.67

$1.89

$2.11

$2.34

$2.56

$2.78

$3.00


Profit Opportunity

PROFIT POTENTIAL IS ENORMOUS:

Units sold at a significant mark-up.

“Royalty fee” on fuel production.

Liberty can develop its own facilities and reap profits from diesel fuel sales.


Target Markets

DEMAND FOR DIESEL FUEL STRETCHES ACROSS

MULTIPLE INDUSTRIES:

Oil and gas companies Railroads Government (state, local) Military (DOD, DOE) Shipping Truck companies Agriculture


US Natural Gas Reserves and Movement


Nobody else is producing Small Scale FTL

Active in the US developing “medium” systems > 1,500 bpd

Large Scale: Still Active in Markets Overseas - Systems > 25,000 bpd

Large Scale: Withdrawn from Markets


Intellectual Property

Patents on primary technology are filed and pending.

Disclosures on other IP ready to be filed.

Multiple additional patents to follow.

Organizational Chart


Doug Gordon - President & Chief Counsel

Investor

Chief Financial Officer

Accounting

Joseph P. Maceda – Chief Technology Officer

Procurement/ Logistics

John Grimes - Engineering

Dr. Nicholas Vanderborgh - Senior Scientist

Mark Engeberg - EVP Marketing

Phil Snyder - VP Regulatory

Administrative


Douglas Gordon - President & Chief Counsel

Liberty GTL: President & Chief Counsel 2012 to Present OXEA Corporation - General Counsel 2007 to Present SunMark Energy, LLC: VP and General Counsel 2005 to Present Alternative energy and solar power development company Law Office of Douglas Gordon 2004 to Present Private practice of law Celanese Chemicals: Vice President-General Counsel 1992 to 2002 Member of the senior management team of this global chemical company. Responsibility for international law department of eleven attorneys plus support staff Massachusetts Institute of Technology - B.Sc. in Economics Columbia University School of Law - JD


Mark Engeberg - EVP of Marketing

Liberty GTL, LLC: EVP of Marketing 2012 to Present SunMark Energy, LLC: Founder & President 2002 to Present Utility Scale Solar Company – Southern California Several CREST projects (1.5 MW each) and 40 MW 3g Solutions: Founder & President 2000 to 2001 Antenna Site Management Over 3,500 sites throughout North America Motorola, Inc: General Manager - Eastern US Region 1991 to 2000 Motorola Antenna Site Management Over 4,000 sites throughout North America University of Maryland - College Park Bachelor of Science - Finance


Joseph Maceda - Founder & Chief Technology Officer

Liberty GTL, LLC: Founder & CTO 2002 to Present Proprietary Electrochemical Processes Fischer-Tropsch Synthesis Anaerobic Digesters Ocean Power Corporation: Founder & CEO 1997 to 2002 Public Company - dissolved after 9/11 Stirling Engines Advanced Distillation Technologies Integrated Water & Power Systems H Power Corporation: Founder & VP Development 1987 to 1997 Public Company in 2000 with a valuation >$1B Proton Exchange Membrane Fuel Cells Phosphoric Acid Fuel Cells Advanced Transit Systems

28

Dr. Nicholas Vanderborgh – Senior Scientist

Liberty GTL, LLC: Senior Scientist 2003 to Present Proprietary Electrochemical Processes Fischer-Tropsch Synthesis Blue Star Technologies: President 1999 to 2002 Fischer-Tropsch Synthesis Catalytic Partial Oxidation Methane Steam Reforming Los Alamos National Laboratory: Director 1975 to 1999 Proton Exchange Membrane Fuel Cells Fuel Processing; Electrolysis; Hydrogen Storage •Patent of the Year

University of Southern Illinois – Masters PhD


Thank you!

Liberty GTL, LLC

For more information: Mark Engeberg (214) 289-2721 [email protected]

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