Professional Documents
Culture Documents
Optimized Cascade ®
Process
ZHE/1*OLFHQVLQJFRQRFRSKLOOLSVFRP
HPDLO/1*SURFHVV#FRQRFRSKLOOLSVFRP
SKRQH
*((1;gfg[gH`addahk;gehYfq&9ddja_`lkj]k]jn]\&Ghlaear]\;Yk[Y\]akYj]_akl]j]\ljY\]eYjcg^;gfg[gH`addahk;gehYfq& ;K@&(1&..-,+./
2XU([SHULHQFH7HFKQRORJ\DQG7HDP
$UH5HDG\WR*RWR:RUNIRU<RX
&RQRFR3KLOOLSVLVDJOREDO $VZRUOGZLGHHQHUJ\GHPDQGFRQWLQXHV 2XU([SHULHQFH
OHDGHULQOLTXH¿HGQDWXUDO WRJURZ&RQRFR3KLOOLSV¶SURYHQ :KHQ\RXFKRRVHWKH&RQRFR3KLOOLSV
EXLOGLQJWKH¿UVW/1*FDUULHU RIFROODERUDWLQJZLWKDQHVWDEOLVKHG
:LWKQHDUO\IRXUGHFDGHVRIRSHUDWLQJ GHSHQGDEOHRSHUDWRURIPDMRULQWHUQDWLRQDO
IRULQWHUQDWLRQDOWUDGHWRWKH
H[SHULHQFHDQGFXWWLQJHGJHWHFKQRORJ\ HQHUJ\IDFLOLWLHVDQGDFRPSDQ\WKDWLVD
¿UVWDSSOLFDWLRQRIKLJKO\
LPSURYHPHQWV&RQRFR3KLOOLSV OHDGHULQHYHU\DVSHFWRIWKH/1*YDOXH
HI¿FLHQWDHURGHULYDWLYHJDV
FRQWLQXHVWRSURYLGHFRVWHIIHFWLYH FKDLQIURPH[SORUDWLRQDQGSURGXFWLRQ
WXUELQHVLQ/1*OLTXHIDFWLRQ
KLJKYDOXHQDWXUDOJDVOLTXHIDFWLRQ WROLTXHIDFWLRQWRVKLSSLQJWRUHJDVL¿FDWLRQ
VROXWLRQV6HOHFWHGIRUQHDUO\¿IW\ DQGPDUNHWLQJ
SHUFHQWRIUHFHQWJUHHQ¿HOG/1*SODQWV
WKH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH 1R/1*WHFKQRORJ\OLFHQVRUKDVPRUH
3URFHVVKDVGHPRQVWUDWHGRSHUDWLQJ RSHUDWLQJH[SHULHQFHWKDQ&RQRFR3KLOOLSV
KDVQHDUO\\HDUVRIKDQGVRQ/1* SURGXFWLRQDQGPDLQWHQDQFHÀH[LELOLW\ 7KH&RQRFR3KLOOLSV¶
HDVHDQGÀH[LELOLW\ZKLOHGHOLYHULQJ %HJLQQLQJLQZLWKRXU¿UVW/1*
RSHUDWLQJH[SHULHQFH ,QWKH³WZRWUDLQVLQRQH´SODQWRQH RSHUDWHG/1*IDFLOLW\LQ
KLJKUHOLDELOLW\ IDFLOLW\DW.HQDL$ODVND&RQRFR3KLOOLSV
WUDLQRIOLTXHIDFWLRQH[FKDQJHUVLVVHUYHG 'DUZLQ$XVWUDOLDZDVWKH
6LQFH.HQDLWKH&RQRFR3KLOOLSV2SWLPL]HG E\WZRSDUDOOHOFRPSUHVVRUVRQHDFK ¿UVWWRXVHKLJKO\HI¿FLHQW
&DVFDGH3URFHVVKDVEHHQOLFHQVHGE\ UHIULJHUDWLRQFLUFXLW7KLVFRQFHSWRIIHUV
ORZHPLVVLRQDHURGHULYDWLYH
RZQHUVRIQLQHDGGLWLRQDOWUDLQVLQFOXGLQJ XQPDWFKHGWXUQGRZQÀH[LELOLW\DOORZLQJ
JDVWXUELQHVIRUFRPSUHVVRU
WKRVHDW$WODQWLF/1*(J\SWLDQ/1* WKHOLTXHIDFWLRQSODQWWRHDVLO\RSHUDWH
GULYHUV
'DUZLQ/1*(TXDWRULDO*XLQHD/1* FRQWLQXRXVO\DQ\ZKHUHIURPQHDU]HUR
Kenai LNG
Equatorial Guinea LNG
Kenai, Alaska
Malabo, EG DQGWKHPRVWUHFHQWO\OLFHQVHGSODQW WRSHUFHQWRIGHVLJQFDSDFLW\,Q
1.5 MTPA
3.7 MTPA
$QJROD/1*7RGDWHDOORIWKHSODQWVLQ DGGLWLRQLIDFRPSUHVVRUJRHVGRZQRQ
Darwin LNG
Darwin, Australia RSHUDWLRQKDYHGHPRQVWUDWHGVXSHULRU DQ\RIWKHUHIULJHUDQWFLUFXLWVWKHXQLWLV
Egyptian LNG 3.7 MTPA
Atlantic LNG UHOLDELOLW\DQGH[FHOOHQWFRQWUROODELOLW\ VWLOOFDSDEOHRISURGXFLQJEHWZHHQ
Idku, Egypt
Point Fortin, Trinidad
7.2 MTPA • 2 Trains
15.1 MTPA • 4 Trains SHUFHQWRIGHVLJQSURGXFWLRQUDWHV6LQFH
Angola LNG
Soyo, Angola 2XU7HFKQRORJ\ WKHXQLWFRQWLQXHVWRRSHUDWHDWGHVLJQ
5.2 MTPA
7KH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH WHPSHUDWXUHVDQGSUHVVXUHVWKHUHLVQR
3URFHVVLVDUREXVWV\VWHPXWLOL]LQJD QHHGWRLVRODWHHTXLSPHQWDQGYHQW
XQLTXH³WZRWUDLQVLQRQH´FRQFHSWWKDW YDOXDEOHK\GURFDUERQV7\SLFDOO\IXOO
LVSURYHQWRGHOLYHUWKHKLJKHVWLQGXVWU\ SURGXFWLRQFDQEHDFKLHYHGLQOHVVWKDQ
SODQWDYDLODELOLW\DQGXQPDWFKHG RQHKRXUIROORZLQJDFRPSUHVVRUUHVWDUW
+RZWKH3URFHVV:RUNV SXPSHGLQWRLQVXODWHGVWRUDJHWDQNVZKHUH
7KHVFKHPDWLFEHORZLOOXVWUDWHVKRZWKH LWUHPDLQVXQWLOVKLSPHQW*DVHVZKLFK
&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH ERLORXWRIWKH/1*DVLWZDUPVVOLJKWO\
3URFHVVSURGXFHV/1*7KHUDZJDVLV LQWKHVWRUDJHWDQNDUHFDSWXUHGDQG
¿UVWWUHDWHGWRUHPRYHWKHW\SLFDO UHWXUQHGWRWKHSURFHVVIRUUHOLTXHIDFWLRQ
FRQWDPLQDQWVRI&2+6DQGZDWHU WKXVPLQLPL]LQJSURGXFWORVVHV
EHIRUHEHLQJGHOLYHUHGWRWKHOLTXHIDFWLRQ
VHFWLRQRIWKHSODQW7KHUHWKHWUHDWHGJDV 2XU7HDP
LVFKLOOHGFRROHGDQGFRQGHQVHGWR) )URPIURQWHQGHQJLQHHULQJGHVLJQ)(('
LQVXFFHVVLYHO\FROGHUKHDWH[FKDQJHUV WKURXJKFRQVWUXFWLRQVWDUWXSDQG
XVLQJSURSDQHHWK\OHQHDQGPHWKDQHDV SHUIRUPDQFHWHVWLQJD&RQRFR3KLOOLSV
UHIULJHUDQWV7KH/1*SURGXFWLVWKHQ OLFHQVLQJDQGHQJLQHHULQJWHDPZRUNV
VLGHE\VLGHZLWKSURMHFWRZQHUVWRHQVXUH 7KH(QHUJ\$GYDQFH
7KH2SWLPL]HG&DVFDGH 3URFHVV
VXFFHVVIXOSURMHFWGHYHORSPHQWDQG GHSDUWLQJ'DUZLQ/1*ZLWK
LPSOHPHQWDWLRQ+RZHYHURXUUHODWLRQVKLS DFDUJRGHVWLQHGIRU-DSDQ
GRHVQRWVWRSWKHUH$IWHUSODQWKDQGRYHU
&RQRFR3KLOOLSV¶HQJLQHHULQJDQGWHFKQLFDO
VWDIIVWDQGUHDG\WRSURYLGHDVVLVWDQFHIRU
\RXUGD\WRGD\QHHGVLQWURXEOHVKRRWLQJ
VKXWGRZQDQGVWDUWXSGHERWWOHQHFNLQJ
DQGWRDQVZHURSHUDWLRQDODQGWHFKQLFDO
TXHVWLRQV
$QRWKHUDGYDQWDJHRIWKH&RQRFR3KLOOLSV
2SWLPL]HG&DVFDGH3URFHVVLV
&RQRFR3KLOOLSV¶XQLTXH*OREDO/1*
&ROODERUDWLRQZLWK%HFKWHO&RUSRUDWLRQ
7KLVFROODERUDWLRQFRPELQHV&RQRFR
3KLOOLSV¶/1*SURFHVVDQGRSHUDWLQJ
H[SHUWLVHZLWK%HFKWHO¶VOHDGLQJHGJH
NQRZKRZDQGSHUIRUPDQFHLQ
HQJLQHHULQJGHVLJQSURFXUHPHQWDQG
FRQVWUXFWLRQWRDVVXUHXQVXUSDVVHG
VWDQGDUGVIRUFRPSHWLWLYHFRVWDQGWLPH
WRFRPSOHWLRQ7KURXJKLQVWLWXWLRQDOL]HG
OHDUQLQJIURPSURMHFWWRSURMHFWWKH
&RQRFR3KLOOLSV%HFKWHO&ROODERUDWLRQ
LQVXUHVFRQWLQXRXVLPSURYHPHQWLVGHOLY
HUHGIURPSURMHFWSODQQLQJWRH[HFXWLRQ
3URGXFW'HYHORSPHQW&HQWHU 5LJKW&KRLFH5LJKW1RZ
&RQRFR3KLOOLSVDQG%HFKWHOFRQWLQXHWR :LWKQHDUO\IRXUGHFDGHVRIKDQGVRQ
HQKDQFHWKH3URFHVVWHFKQRORJ\WKURXJK H[SHULHQFHRSHUDWLQJ/1*IDFLOLWLHV
WKHLUMRLQW3URGXFW'HYHORSPHQW&HQWHU RXUH[SHUWLVHLVVXSSRUWHGE\VXFFHVVIXO
/RFDWHGLQ+RXVWRQ7H[DVHPSOR\HHV SURYHQRSHUDWLRQVDQGSLRQHHULQJ
IURPERWKFRPSDQLHVFRQWLQXDOO\ LQLWLDWLYHVWKDWFRQWLQXHWRVHWQHZ
FROODERUDWHWRHQKDQFHWKH2SWLPL]HG VWDQGDUGVIRUORZFRVW/1*SURGXFWLRQ
&DVFDGH3URFHVVFRQGXFWLQJERWK
HQJLQHHULQJHYDOXDWLRQVDQGLQ¿HOG 7KLVH[SHULHQFHFRPELQHGZLWKWKH
(VWDEOLVKHGLQWKH
WHVWLQJDQGDSSOLFDWLRQ7KURXJKWKLV UHOLDELOLW\RIWKH&RQRFR3KLOOLSV2SWLPL]HG
&RQRFR3KLOOLSV%HFKWHO
FROODERUDWLRQ&RQRFR3KLOOLSVDQG%HFKWHO &DVFDGH3URFHVVDQGWKHXQSDUDOOHOHG
3URGXFW'HYHORSPHQW KDYHQRWRQO\XVHGSURFHVVRSWLPL]DWLRQ YDOXHWLPHWRPDUNHWDQGFXVWRPHU
&HQWHU3'&IRFXVHV DQGYDOXHHQJLQHHULQJWRLPSURYHWKH VDWLVIDFWLRQSURYLGHGE\WKH
RQERWKSURFHVVDQG &RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVV &RQRFR3KLOOLSV%HFKWHO&ROODERUDWLRQ
HQJLQHHULQJSURFXUHPHQW WHFKQRORJ\EXWKDYHDOVRGHYHORSHG JLYHVSURMHFWRZQHUVDOOWKHFRQ¿GHQFH
DQGFRQVWUXFWLRQ(3& PHWKRGVWRLPSURYHSURMHFWH[HFXWLRQ WKH\QHHGWREHFHUWDLQWKH\¶YHPDGHWKH
HQKDQFHPHQWV SURFHGXUHVZKLFKORZHUXQLWFRVWV EHVWFKRLFHLQ/1*WHFKQRORJ\
Ghlaear]\;Yk[Y\]k]jna[]kYj]hjgna\]\Zq;gfg[gH`addahk;gehYfq$H`addahkDF?L][`fgdg_qK]jna[]k;gehYfqYf\:][`l]d;gjhgjYlagfnaYY[gddYZgjYlan]
j]dYlagfk`ahoal`;gfg[gH`addahk;gehYfq&Ghlaear]\;Yk[Y\]$l`]Ghlaear]\;Yk[Y\]dg_g$;gfg[gH`addahkYf\alkdg_gYj]ljY\]eYjckg^;gfg[gH`addahk;gehYfq&
&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH
KLVWRU\DQGSURMHFWV
7KH¿UVWDSSOLFDWLRQRIWKH2SWLPL]HG&DVFDGH3URFHVVZDVLQVWDOOHGLQ&RQRFR3KLOOLSV¶OLTXHIDFWLRQIDFLOLW\ZKLFKLVORFDWHGRQ
WKH.HQDL3HQLQVXODLQ$ODVND%HFDXVHWKHIDFLOLW\ZDVORFDWHGQHDUO\PLOHVIURPWKHQHDUHVWPDMRUFLW\RI$QFKRUDJH$ODVND
LWZDVLPSRUWDQWWKDWWKHIDFLOLW\EHGHSHQGDEOHHDV\WRRSHUDWHDQGSURYLGHORQJXQLQWHUUXSWHGVHUYLFH2YHUWKHSDVWIRXUGHFDGHV
WKHSURFHVVKDVEHHQSURYHQDVDUHOLDEOHÀH[LEOHDQGFRVWHI¿FLHQWWHFKQRORJ\DQGFRQWLQXHVLQRSHUDWLRQWRGD\DW/1*IDFLOLWLHV
DURXQGWKHZRUOG6LQFH&RQRFR3KLOOLSVEHJDQOLFHQVLQJWKHWHFKQRORJ\LQWKHHDUO\VDWRWDORIQLQH2SWLPL]HG&DVFDGHXQLWV
KDYHEHHQOLFHQVHG(LJKWRIWKRVHDUHLQRSHUDWLRQDQGWKHQLQWK$QJROD/1*LVFXUUHQWO\LQWKHHQJLQHHULQJSURFXUHPHQWDQG
FRQVWUXFWLRQ(3&SKDVHRIWKHSURMHFW
.HQDL/1*±.HQDL$ODVND
6WDUWXS&DSDFLW\
-XQH 073$
7KH073$.HQDL$ODVND/1*SODQWVWDUWHGXSLQDQGKDVDFKLHYHGRYHU
\HDUVRIXQLQWHUUXSWHGVXSSO\WR-DSDQHVHFXVWRPHUV.HQDLZDVWKHZRUOG¶VODUJHVWSODQW
ZKHQEXLOWWKH¿UVWWRVHUYHWKH$VLD3DFL¿FPDUNHWDQGWKH¿UVWWRXVHJDV¿UHGWXUELQHV
IRUSURFHVVUHIULJHUDWLRQ6LQFHVWDUWXSWKHSODQWKDVDFKLHYHGSURGXFWLRQHI¿FLHQF\LQ
H[FHVVRISHUFHQWDQGWXUELQHFRPSUHVVRUUHOLDELOLW\RIRYHUSHUFHQW
$WODQWLF/1*3RLQW)RUWLQ7ULQLGDGDQG7REDJR
6WDUWXS&DSDFLW\
±0DUFK 073$
±$XJXVW 073$
±$SULO 073$
±1RYHPEHU 073$
$WODQWLF7UDLQZDVWKH¿UVWOLFHQVHG2SWLPL]HG&DVFDGHXQLWDQGZDVFRPSOHWHGRQO\
PRQWKVDIWHU(3&VLJQLQJ7UDLQVDQGVHWDQLQGXVWU\EHQFKPDUNIRUWKHORZHVW
LQVWDOOHGFRVWRIMXVWXQGHUSHU073$:KHQEXLOWLQ7UDLQZDVWKHODUJHVW
VLQJOHWUDLQXQLWLQWKHZRUOGDW073$
(J\SWLDQ/1*±,GNX(J\SW
6WDUWXS&DSDFLW\
0D\ 073$
6HSWHPEHU 073$
(J\SWLDQ/1*ZDVWKHWKLUGJUDVVURRWV2SWLPL]HG&DVFDGHSURMHFWEXLOWDQGFRQVLVWVRI
WZRWUDLQV(DFKWUDLQZDVEXLOWWRSURGXFH073$XVLQJ*()UDPH'JDVWXUELQHV
(3&ZRUNIRU7UDLQEHJDQLQ1RYHPEHUZLWK¿UVW/1*SURGXFHGLQ6HSWHPEHU
QLQHPRQWKVDKHDGRIVFKHGXOH
'DUZLQ/1*±'DUZLQ$XVWUDOLD
6WDUWXS&DSDFLW\
'HFHPEHU 073$
'DUZLQ/1*LVDVLQJOHWUDLQIDFLOLW\ZLWKDXQLWFDSDFLW\RI073$7RDGGUHVV
HQYLURQPHQWDOSULRULWLHVRISURMHFWRZQHUVDQGWKHKRVWFRXQWU\WKH'DUZLQIDFLOLW\
ZDVGHVLJQHGZLWKVHYHUDO¿UVWVLQFOXGLQJEHLQJWKH¿UVWDSSOLFDWLRQRIKLJKO\HI¿FLHQW
DHURGHULYDWLYHJDVWXUELQHVLQ/1*VHUYLFH$GGLWLRQDOO\'/1*ZDVWKH¿UVW2SWLPL]HG
&DVFDGH3URFHVVIDFLOLW\WRLQFRUSRUDWHZDVWHKHDWLQWHJUDWLRQWRLPSURYHSURFHVVHI¿FLHQF\
DQGLQOHWDLUKXPLGL¿FDWLRQWRHQKDQFHSURGXFWLRQGXULQJSHULRGVRIORZKXPLGLW\
(TXDWRULDO*XLQHD/1*±0DODER(TXDWRULDO*XLQHD
6WDUWXS&DSDFLW\
0D\ 073$
7KLVVLQJOHWUDLQ073$SURMHFWEHJDQFRQVWUXFWLRQLQHDUO\DQGWKH¿UVW/1*
FDUJRZDVGHOLYHUHGLQ0D\VL[PRQWKVDKHDGRIRULJLQDOVFKHGXOH(*/1*LVWKH
RQO\IDFLOLW\LQWKHZRUOGXWLOL]LQJDVXVSHQVLRQEULGJHIRUORDGLQJ/1*
$QJROD/1*±6R\R$QJROD
6WDWXV&DSDFLW\
'HWDLOHG(QJLQHHULQJ'HVLJQ 073$
$QJROD/1*LVDVLQJOHWUDLQXQLWZLWKDFDSDFLW\RI073$7KH$QJRODGHVLJQ
XWLOL]HV*()UDPHDQG)UDPHFRPSUHVVRUGULYHUVLQDXQLTXHZD\WKDWGHOLYHUVFRVW
LPSURYHPHQWVZKLOHVWLOOPDLQWDLQLQJWKHRSHUDWLQJDGYDQWDJHVRIWKHWZRWUDLQVLQRQH
UHOLDELOLW\,WDOVRXWLOL]HVDQLQWHJUDWHGVROXWLRQIRU1*/DQG/3*UHFRYHU\LQD
OLTXHIDFWLRQIDFLOLW\UHGXFLQJHYHQIXUWKHUWKHFDSLWDOFRVW
*((1;gfg[gH`addahk;gehYfq&9ddja_`lkj]k]jn]\&Ghlaear]\;Yk[Y\]akYj]_akl]j]\ljY\]eYjcg^;gfg[gH`addahk;gehYfq&
&RQRFR3KLOOLSV%HFKWHO&ROODERUDWLRQ
/1*3URGXFW'HYHORSPHQW&HQWHU
%DFNJURXQG
,QWKH¶V&RQRFR3KLOOLSV&RPSDQ\DQG0DUDWKRQ2LO
FRQWUDFWHGZLWK%HFKWHO&RUSRUDWLRQWRFRQVWUXFWWKH¿UVWQDWXUDO
JDVOLTXHIDFWLRQSODQWEDVHGRQDQHZDQGLQQRYDWLYHSURFHVV
GHVLJQHGE\&RQRFR3KLOOLSVWKH2SWLPL]HG&DVFDGH/1*
SURFHVV7KHUHVXOWZDVWKH.HQDL$ODVND/1*IDFLOLW\ZKLFK
EHJDQRSHUDWLRQLQDQGFRQWLQXHVRSHUDWLRQWRGD\
7KHLQLWLDOLQWHQWZDVIRU&RQRFR3KLOOLSVWRXVHWKHWHFKQRORJ\
H[FOXVLYHO\RQSURMHFWVLQZKLFKLWKHOGDQHTXLW\LQWHUHVW+RZHYHU
LQWKHPLGV$WODQWLF/1*DSSURDFKHG%HFKWHOZLWKWKHQHHG
WREXLOGDORZFRVW\HWUHOLDEOHVLQJOHWUDLQ/1*IDFLOLW\$IWHU
FRPSOHWLQJWKHFRPSHWLWLYH)(('%HFKWHOZRQWKH(3&FRQWUDFW
UHVXOWLQJLQWKH¿UVWOLFHQVHGDSSOLFDWLRQRIWKH2SWLPL]HG
&DVFDGHSURFHVVDQGWKH¿UVWRSSRUWXQLW\IRU&RQRFR3KLOOLSVWR 3'&LVIDFLOLWDWHGE\DQ$GYLVRU\&RPPLWWHHFRPSULVHGRI
ZRUNRQFHDJDLQZLWK%HFKWHOLQQDWXUDOJDVOLTXHIDFWLRQ &RQRFR3KLOOLSVDQG%HFKWHOVHQLRUPDQDJHPHQW7KH$GYLVRU\
&RPPLWWHHSURYLGHVJXLGDQFHLQWKHVHOHFWLRQRIWKHYDULRXV
$VDUHVXOWRIWKLVDFKLHYHPHQW&RQRFR3KLOOLSVDQG%HFKWHO SURJUDPVDQGVWXGLHVXQGHUWDNHQE\WKH3'&
IRUPHGD*OREDO/1*&ROODERUDWLRQLQWRFDSLWDOL]HRQ
&RQRFR3KLOOLSV¶/1*WHFKQRORJ\H[SHUWLVHDQG%HFKWHO¶VZRUOG 7KH3'&ZRUNVRQLPSURYHPHQWVWXGLHVQRWRQO\IRU/1*
FODVVGHVLJQDQGSURMHFWH[HFXWLRQNQRZKRZRIJUDVVURRWV/1* SURFHVVWHFKQRORJ\EXWRQDSSOLFDWLRQVWRHQKDQFHWKHWRWDOSODQW
IDFLOLWLHV7KHVXFFHVVRIWKH&ROODERUDWLRQKDVUHVXOWHGLQHLJKW IDFLOLW\LQFOXGLQJRYHUDOOGHVLJQFRQVWUXFWLRQDQGRSHUDWLRQV
VXEVHTXHQWSODQWVEHLQJEXLOWZLWKDQLQWKXQLWLQWKH(3&SKDVH 7KLVXQLTXHHQGWRHQGDSSURDFKRU7RWDO/LIH&\FOH)RFXV
DOOXWLOL]LQJWKH2SWLPL]HG&DVFDGHSURFHVV HQDEOHVWKH&RQRFR3KLOOLSV%HFKWHO&ROODERUDWLRQWRORRN
EH\RQGWKHOLTXHIDFWLRQWHFKQRORJ\LWVHOIDQGLQWRDUHDVKDYLQJ
3URGXFW'HYHORSPHQW&HQWHU WKHJUHDWHVWSRWHQWLDOWRLPSDFWSURMHFWFRVWV
6RRQDIWHUIRUPLQJWKH&ROODERUDWLRQWKHFRPSDQLHVHVWDEOLVKHG
WKH/1*3URGXFW'HYHORSPHQW&HQWHU3'&WRIRFXVFRRSHUDWLYH 6XPPDULHVRIWKHUHOHYDQWVWXG\UHVXOWVDUHWKHQVKDUHGZLWK
LQWHOOHFWXDOHIIRUWRQFRQWLQXRXVLPSURYHPHQWRIWKH2SWLPL]HG FOLHQWVWRDVVLVWLQWKHLUGHFLVLRQVVXUURXQGLQJWKHLUSDUWLFXODU
&DVFDGHSURFHVVSODQWRSHUDWLRQVLPSURYHSURMHFWH[HFXWLRQ SURFHVVGHVLJQ7KLVDOORZVRZQHUVWRPDNHNH\GHFLVLRQVDERXW
FRVWVDQGVFKHGXOHDQGWRMRLQWO\PDUNHWWKHSURFHVV SODQWGHVLJQHDUO\LQWKHSURMHFWOLIHWRPLQLPL]HWKHQXPEHU
WLPHDQGFRVWRISHUIRUPLQJ3UH)(('RU)(('VWXGLHV,WQRW
7KH3'&LVVWDIIHGE\DIXOOWLPHSURJUDPGLUHFWRUDQGSHUVRQQHO RQO\UHGXFHVWKHRYHUDOOSURMHFWGXUDWLRQDQGWRWDOXQLWFRVWEXW
GUDZQIURPERWK&RQRFR3KLOOLSVDQG%HFKWHO2YHUVLJKWRIWKH DOVRPD[LPL]HVWKHYDOXHWRWKHRZQHU
1HZ/1*6WDQGDUG7RWDO/LIH&\FOH)RFXV
7KURXJK&RQRFR3KLOOLSV%HFKWHO&ROODERUDWLRQ
3RWHQWLDOWR,PSDFW&RVWV
H
3U
3U
RM
HF
W
2OG3DUDGLJP
3URMHFW3KDVHV
/HYHUDJLQJSULRU3'&OHDUQLQJHTXDOVWLPHDQGFRVWVDYLQJV
:LWKDOPRVWRQHKXQGUHGVWXGLHVFRPSOHWHGVLQFHLWLQFHSWLRQWKH3'&FRQWLQXHVWRH[SORUHIRUZD\VWRRSWLPL]HSODQWGHVLJQDQG
FRQVWUXFWLRQ6RPHRIWKHDFKLHYHPHQWVDQGFXVWRPHUEHQH¿WVRIWKH&ROODERUDWLRQDQG3'&LQFOXGH
&ROODERUDWLRQ$FKLHYHPHQWV &XVWRPHU%HQH¿WV
3ODQWFDSDFLW\UDQJLQJIURPWR073$ 1HZLQQRYDWLRQVDQGEHVWSUDFWLFHVDUHTXLFNO\
)LUVWXVHRIJDVWXUELQHVDQGDHURGHULYDWLYHJDVWXUELQHV LQFRUSRUDWHGLQWRQHZGHVLJQV
LQ/1*VHUYLFH /RZHUFDSLWDOFRVW
+HDYLHV5HPRYDO8QLWLQWHJUDWHGZLWKLQOLTXHIDFWLRQSODQW 6KRUWHUF\FOHWLPHUHVXOWLQJLQIDVWHUWLPHWRPDUNHW
)ODVKLQJOLTXLGH[SDQGHUVIRULQFUHDVHGSURGXFWLRQ 7UDLQVL]HDGDSWDEOHWRFOLHQWUHTXLUHPHQWV
:DVWHKHDWUHFRYHU\WRUHGXFHFDSLWDODQGRSHUDWLQJH[SHQVHV ,PSURYHGRQVWUHDPUHOLDELOLW\
1HZUHIULJHUDWLRQGULYHUFRQ¿JXUDWLRQV
(OHFWULFGULYHDQGSRZHUVXSSO\RSWLRQV
*((1;gfg[gH`addahk;gehYfq&9ddja_`lkj]k]jn]\&Ghlaear]\;Yk[Y\]akYj]_akl]j]\ljY\]eYjcg^;gfg[gH`addahk;gehYfq&
:K\³WZRWUDLQVLQRQH´DUHEHWWHUWKDQRQH
7KH³WZRWUDLQVLQRQH´FRQFHSWZDVGHYHORSHGLQWKH &RQWLQXRXV,PSURYHPHQW
VIRUWKHIDFLOLW\LQ.HQDL$ODVNDGXHWRWKHSODQW¶V 2YHUWLPHDQGLQVXEVHTXHQWIDFLOLW\LQVWDOODWLRQVDURXQG
UHPRWHORFDWLRQDQGWKHQHHGIRUKLJKRQVWUHDPDYDLODELOLW\ WKHZRUOGWKH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVV
VXSHULRUÀH[LELOLW\DQGH[FHSWLRQDOUREXVWQHVV7KHFRQFHSW KDVXQGHUJRQHFRQWLQXHGLPSURYHPHQWEXWDOZD\VKROGLQJ
LVVLPSOHDQGVWUDLJKWIRUZDUG3ODQWVDUHFRQ¿JXUHGVR FRQVWDQWWRWKHUHOLDELOLW\DQGÀH[LELOLW\DGYDQWDJHVRIWKH
HTXLSPHQWZLWKKLJKHUPDLQWHQDQFHQHHGVVXFKDVJDV ³WZRWUDLQVLQRQH´GHVLJQ6RPHRIWKHVHLPSURYHPHQWV
WXUELQHVDQGFRPSUHVVRUVDUHGXSOLFDWHGZKLOHPRUH LQFOXGH
UHOLDEOHFRPSRQHQWVOLNHDLU¿QFRROHUVDQGEUD]HG /RDGEDODQFLQJRIUHIULJHUDWLRQFLUFXLWVWRRSWLPL]H
DOXPLQXPKHDWH[FKDQJHUVDUHQRWGXSOLFDWHG DYDLODEOHKRUVHSRZHU
'HYHORSPHQWRIWKHRSHQPHWKDQHUHIULJHUDWLRQORRS
7KHGHVLJQKDVEHHQSURYHQLQDOPRVWIRXUGHFDGHVRI
WRPD[LPL]HWKHUPDOHI¿FLHQF\
RSHUDWLRQDW.HQDLZLWKDQRYHUDOOSODQWSURGXFWLRQ
HI¿FLHQF\H[FHHGLQJSHUFHQWDQGJDVWXUELQHVHFWLRQ &ROGER[FRQ¿JXUDWLRQRSWLPL]HGWRLPSURYHWKH
UHOLDELOLW\LQH[FHVVRISHUFHQW%XLOGLQJRQWKLVVXFFHVV SURFHVVDQGUHGXFHWKHSORWDUHD
VXEVHTXHQW2SWLPL]HG&DVFDGH3URFHVVSODQWVKDYH ,QWHJUDWHG/3*DQGFRQGHQVDWHUHFRYHU\ZLWKLQWKH
LQFRUSRUDWHGWKHWZRWUDLQVLQRQHFRQFHSW OLTXHIDFWLRQXQLWWRUHGXFHWRWDOXQLWFRVW
)LUVWDSSOLFDWLRQRIKLJKO\HI¿FLHQWDHURGHULYDWLYH
7ZRWUDLQVLQRQH$GYDQWDJHV JDVWXUELQHVLQ/1*/LTXHIDFWLRQ
$GYDQWDJHVRIWKH³WZRWUDLQVLQRQH´GHVLJQLQFOXGH
:DVWHKHDWUHFRYHU\LQWHJUDWLRQ
+LJK3URGXFWLRQ(I¿FLHQF\²8SWRSHUFHQWRIGHVLJQ
FDSDFLW\SRVVLEOHHYHQZLWKRQHKDOIRIFRPSUHVVRU
&XVWRPHU$GYDQWDJHV
SRZHURIIOLQH
7KHFRUHGHVLJQHOHPHQWDQGDGYDQWDJHRIWKH
:LGH5DQJHRI&DSDFLW\)OH[LELOLW\²$EOHWRRSHUDWH
&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVVLVWKH
IURPQHDU]HURWRSHUFHQWRIGHVLJQZLWKVXVWDLQDEOH
³WZRWUDLQVLQRQH´FRQ¿JXUDWLRQ7KLVGHVLJQSURYLGHV
SURGXFWLRQDVORZDVSHUFHQWIRUH[WHQGHGSHULRGVRIWLPH
0DLQWHQDQFH)OH[LELOLW\²2SSRUWXQLVWLFPDLQWHQDQFH *UHDWHUÀH[LELOLW\DQGSRWHQWLDOFDSLWDOFRVWVDYLQJV
FDQEHSHUIRUPHGGXULQJSHULRGVRIORZSURGXFWLRQWR WKURXJKFRPSHWLWLYHHTXLSPHQWELGGLQJ
H[WHQGWKHLQWHUYDOEHWZHHQWXUQDURXQGV,QVRPHFDVHV (DVHRIVWDUWXSVKXWGRZQDQGRSHUDWLRQ
PDMRURYHUKDXORIDQDGMDFHQWJDVWXUELQHFRPSUHVVRUKDV 8QPDWFKHGRSHUDWLQJDYDLODELOLW\ZLWKXSWRSHUFHQW
EHHQDFFRPSOLVKHGZKLOHWKHSODQWFRQWLQXHVLQRSHUDWLRQ FDSDFLW\PDLQWDLQHGGXULQJURXWLQHPDLQWHQDQFH
2SWLPL]H3ODQW(I¿FLHQF\²3ODQWDQGHTXLSPHQW
)XOOUDQJHSURGXFWLRQÀH[LELOLW\IURPQHDU]HURWR
HI¿FLHQFLHVFDQEHPD[LPL]HGE\DGMXVWLQJWKHQXPEHU
SHUFHQWRIGHVLJQSURGXFWLRQ
DQGPL[RIJDVWXUELQHVFRPSUHVVRUVRQOLQHGXULQJ
+LJKWKHUPDOHI¿FLHQF\
SHULRGVRIORZHUWKDQQRUPDOSURGXFWLRQUDWHV
*((1;gfg[gH`addahk;gehYfq&9ddja_`lkj]k]jn]\&Ghlaear]\;Yk[Y\]akYj]_akl]j]\ljY\]eYjcg^;gfg[gH`addahk;gehYfq&
'HFUHDVHHQYLURQPHQWDOLPSDFWZKLOH
LQFUHDVLQJSUR¿WDELOLW\
7KH(QYLURQPHQW$*URZLQJ&RQVLGHUDWLRQ
(PSOR\HGLQ/1*IDFLOLWLHVDURXQGWKHZRUOGIRURYHUIRXUGHFDGHV
WKH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVVFRQWLQXHVWR
VHWQHZVWDQGDUGVLQWKHGHVLJQDQGRSHUDWLRQRIHI¿FLHQWDQG
FRVWHIIHFWLYH/1*IDFLOLWLHV+LVWRULFDOO\WKHSULPDU\IRFXVIRU
SODQQLQJDQGGHVLJQLQJRI/1*IDFLOLWLHVZDVOLIHF\FOHFRVWDQG
SUR¿WDELOLW\+RZHYHUWRGD\WKHUHLVDJURZLQJUHFRJQLWLRQRI
DQRWKHUNH\FRQVLGHUDWLRQIRUDPDMRUOLTXHIDFWLRQIDFLOLW\±LWV
LPSDFWRQWKHHQYLURQPHQW
,QFUHDVLQJO\QHZIDFLOLW\SODQQLQJDQGGHVLJQDUHEHLQJLPSDFWHG
E\JOREDOHQYLURQPHQWDOFRQFHUQV2SHUDWLQJFRPSDQLHVDOVR
ZDQWWREHUHVSRQVLEOHVWHZDUGVRIWKHLUHQYLURQPHQW7KH\DUH
VHHNLQJSURFHVVVROXWLRQVWRPD[LPL]HSODQWHI¿FLHQF\DQG
IDFLOLW\HFRQRPLFVZKLOHDWWKHVDPHWLPHPLQLPL]LQJSROOXWDQWV
DQGWKHLULPSDFWRQWKHHQYLURQPHQW
7KH2SWLPL]HG&DVFDGH3URFHVV ,WV)DYRUDEOH
(QYLURQPHQWDO,PSDFW
7KH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVVKDVVWURQJ
HQYLURQPHQWDODGYDQWDJHVLQLWVGHVLJQDQGRSHUDWLRQ7KH
³7ZR7UDLQV,Q2QH´GHVLJQFRQFHSWKDVVHYHUDOLQKHUHQW
IHDWXUHVWKDWGHOLYHUKLJKHUHI¿FLHQF\UHVXOWLQJLQORZHU
HPLVVLRQVWKURXJKWKHXVHRI 0LQLPL]HGSORWVSDFHUHTXLUHPHQWVWKURXJKHTXLSPHQW
PRGXODUL]DWLRQ
$GYDQFHGDHURGHULYDWLYHJDVWXUELQHV
5HGXFHGÀDULQJGXULQJVWDUWXSVKXWGRZQDQGRSHUDWLRQV
,QWHJUDWHGZDVWHKHDWUHFRYHU\
*DVDQGÀDVKLQJOLTXLGH[SDQGHUV
7KH&RQRFR3KLOOLSVSURFHVVGHVLJQLVFRQWLQXRXVO\EHLQJ
,QOHWDLUFRROLQJRIJDVWXUELQHV LPSURYHGZLWKWKHJRDORILQFUHDVLQJWKHUPDOHI¿FLHQF\UHGXFLQJ
,QWHJUDWHG1*/IUDFWLRQDWLRQ HPLVVLRQVDQGUHGXFLQJOLIHF\FOHFRVW
&RQRFR3KLOOLSV8VHRI$HURGHULYDWLYHV
7KHUPDOHI¿FLHQF\LVDNH\GULYHURIDQ\/1*IDFLOLW\DQG
RQ
HYHQPLQRUGHVLJQFKDQJHVFDQKDYHDVLJQL¿FDQWLQÀXHQFHRQ
HI¿FLHQF\DQGHPLVVLRQV&RQRFR3KLOOLSVKDVGHPRQVWUDWHG
DGYDQFHVLQWKHUPDOHI¿FLHQF\WKURXJKWKHXVHRIKLJKO\
V
HI¿FLHQWDHURGHULYDWLYHJDVWXUELQHVLQLWVSURFHVVFRQ¿JXUDWLRQV
HG
)RUWKLVUHDVRQWKH2SWLPL]HG&DVFDGH3URFHVVLVWKHSUHIHUUHG
WHFKQRORJ\FKRLFHRIPDQ\/1*SURMHFWVZRUOGZLGH6HYHUDO
DO
DGYDQWDJHVLQFOXGH
/1*3ODQW&DSDFLW\2SWLRQV%\XWLOL]LQJPXOWLSOH
DHURGHULYDWLYHJDVWXUELQHVZLWKLQWKHOLTXHIDFWLRQSURFHVV
WKHIDFLOLW\VL]HFDQEHWDLORUHGWRPHHWWKHDYDLODEOHJDV 2SHUDWLRQDO)OH[LELOLW\7KHYDULDEOHVSHHGPXOWLSOH
VXSSO\RUSURGXFWLRQUHTXLUHPHQWV VKDIWDHURGHULYDWLYHJDVWXUELQHPD[LPL]HVRSHUDWLRQDO
*DV6XSSO\&RQVWUDLQWV,QVLWXDWLRQVZKHUHJDVVXSSOLHV ÀH[LELOLW\DQGDOORZVIDVWVWDUWXSXQGHUIXOOFRPSUHVVRU
DUHFRQVWUDLQHGHLWKHUE\DYDLODELOLW\RUHFRQRPLFDOO\ VHWWOHRXWFRQGLWLRQVZLWKRXWODUJHVWDUWHUPRWRUV
GXHWRKLJKJDVVXSSO\FRVWWKHXVHRIKLJKHUHI¿FLHQF\ (QYLURQPHQWDO&RQVLGHUDWLRQV:LWKKLJKHUHI¿FLHQF\
DHURGHULYDWLYHWXUELQHVUHVXOWVLQPRUH/1*IRUDJLYHQ DQGOHVVIXHOFRQVXPHGJUHHQKRXVHJDVLVUHGXFHG
TXDQWLW\RIIHHGJDV UHVXOWLQJLQDVPDOOHUFDUERQIRRWSULQW
'ULYLQJ3UR¿WDELOLW\DQG3URWHFWLQJWKH(QYLURQPHQW
&RQRFR3KLOOLSVLVFRPPLWWHGWRSURWHFWLQJWKHHQYLURQPHQW,QDOOWKHFRPSDQ\¶VRSHUDWLRQVWKHKLJKHVWHQYLURQPHQWDOVWDQGDUGVDUH
PHWWRHQVXUHWKDWWKHFRPSDQ\¶VHIIRUWVWRGD\QRWRQO\SURYLGHHQHUJ\EXWDOVRLQVXUHDVWDEOHHQYLURQPHQWIRUWRPRUURZ
7KH&RQRFR3KLOOLSV2SWLPL]HG&DVFDGH3URFHVVSURYLGHVDIXOO\LQWHJUDWHGOLTXHIDFWLRQGHVLJQZLWKKLJKWKHUPDOHI¿FLHQF\
RSHUDWLRQDOÀH[LELOLW\DQGORZHUHPLVVLRQV
*((1;gfg[gH`addahk;gehYfq&9ddja_`lkj]k]jn]\&Ghlaear]\;Yk[Y\]akYj]_akl]j]\ljY\]eYjcg^;gfg[gH`addahk;gehYfq&9]jg\]janYlan]h`glg[gmjl]kqg^?=Gad?Yk&