Catalyst Private Equity - World Banksiteresources.worldbank.org/MENAEXT/Resources/P2C... · · 2011-06-27Catalyst Private Equity is a specialized investment company, ... with Project

© 2010 Catalyst PE

Proprietary and Confidential

Catalyst Private Equity

Serving the MENA Region’s Strategic SectorsEnergy and Water Technology and Services Fund

June 2011

Page 2 © 2010 Catalyst PE


Executive Summary

Catalyst Private Equity is a specialized investment company, focusing on equity financing and pro-active growth of SME’s that support the MENA region’s Energy and Water sectors.

– Investment Company Overview: $25.41M in equity and $33MM Board commitment from the US Overseas Private Investment Corporation (OPIC.) Intention to begin distributing profits years 5-6 (2011-2012) Target IRR of 25% per annum, cumulative. Currently seeking to increase equity under management .

– Specialized in the Region’s Strategic Sectors: Alt. Energy: the region has one of the highest solar energy concentrations globally, recent subsidy removals Oil/Gas Efficiency/Environmental: over $100Billion spent per year by the region in oil/gas sector Water Treatment: over 60% of the world’s desalination capacity is in the GCC

– Investment Management Approach

Management team has a strong operational and investment background, regionally and globally. Relationships with some of the region’s top industrials including Saudi Aramco, METITO, Schlumberger, etc. Proprietary network and pipeline of target companies and professional management.

– Current Status

Launched in December 2006. Acquired majority stake in Millennium Energy Industries Jordan (MEI) as a platform, controlling stake in MEI

Palestine, strategic stake in Omni Oil Technologies, majority stake in X3M International, additional under review. In discussions for additional equity from institutional investors.



Supporters, Partners, and Advisory Clients

Catalyst allies include some of region’s top energy, water and financial partners, as well as world class services firms.

– Ithmaar Bank (Investor)

– Saudi Aramco (Advisory)

– METITO (DD Partner)

– Al Rayan Investment Company (Investor)

– US OPIC

– Jordan Pension Fund (SSIU)

– Trident Trust (Administrator)

– KPMG (Auditor)

– Vinson & Elkins (Legal)

© 2010 Catalyst PE


3. The Market Opportunity



Market Opportunity – Oil/Gas

0

10

20

30

40

50

Billion

Barrels/Year

1996 2010 2020

Year

IEA's Projections for Mid East OPEC Supply Over $100 Billion

per year will be

spent on current

and future oil/gas

capacity and

operations in

MENA.

Significant portion

allocated to

improving efficiency

and environmental

friendliness



Market Opportunity - Water Treatment

In MENA, there is a

strategic imperative to

increase the water

treatment capacity.

Over 60% of the

world’s desalination

capacity is in the

GCC countries.



Market Opportunity – Solar Energy

The MENA Region has the world’s highest solar

insolation (concentration), 5.5 KwH/m2 on average.



Building the MENA Region’s Supplier Base

The MENA countries are the only group among top users of technologies,

products, and services in Energy and Water Treatment that have NOT also

developed a regional value added and sustainable supplier base.

Large Energy and Water

Projects and CompaniesCluster of Suppliers

$Energy

$Water

Technology, Products, Services

$ Billions p.a.

Technology, Products, Services

$ Billions p.a.

Small, Medium and

Large Services

Companies



Millennium Energy Industries – Solar Heating and Cooling EPC Company

1. Solar Heating is currently the “low hanging fruit” in the solar energy sector,

commercially viable without incentives. Each $1 invested = $7 in savings.

2. Significant technology, engineering and installation experience is required

for industrial and commercial scale solar heating / cooling solutions.

3. Specialty solar heating/cooling EPC is MEI’s core business, with Project

Development, and R&D as supplementary businesses with significant

potential

TechnologyInstalled Cost

Million US$/MW

Approximate Cost

US$/KWh

Solar Power PV/CSP 2.5 - 7 0.2 - 0.5

Wind 1 - 2.5 0.09 – 0.15

Solar Water, Pool, Space

Heating1 ±20% 0.07 - 0.08

Thermal Solar Cooling 2 0.15



Jordache Jeans Factory - Jordan

Hot Water Supply - 250,000 Liters per Day

Before…

Inefficient Flat Plate Technology



27 June 2011 ©Millennium Energy Industries

Confidential and Proprietary

11



Solar District Hot Water – 17 MW –Largest Globally – PNUW KSA



Solar Cooling



MEI Chiller: Differentiation

Competitor systems limited to <35oC ambient

– Above 35oC these systems need:

Water Tower

AND

Humidity <50% for efficient water tower operation

Millennium System competitive advantages:

– System design ambient temperature can be >35oC without water towers

– Locations with high summer humidity possible (Coastal Gulf: UAE,

Oman etc)



Commercial Differentiation

Unique product capable of operation at high ambient

temperatures

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Capa

city

(KW

)

Cold Water Temperature In (C)

Chiller Capacity at 90C Hot water temperature inand chilled water in 18C

SorTech

ADC2-Improved--- Industry Leading solar system

--- Millennium System

Not recommended above 37oC

Fails at 40oC

Tested to 50+oC

Ambient Temperature (oC)



Government and Donors Role

Tax incentives for RE and R&D

The government to be a client

Subsidies, Feed in Tariffs, and RE financing

R&D grants for the private sector

Long term education strategy

Innovation clusters

Technology development focused funds



Summary

With an established:

– Team with proven industry and

investment track records

– Pipeline of exciting industry

prospects

– Structure tailored to the MENA

region

Regional

Buying

Power

Regional

Expertise &

Technology

Global

Market

Growth

Energy &

Water

is the first

and only investment company

specializing in Energy and Water

technology.

© 2010 Catalyst PE


Thank You

Mohammad Salameh

[email protected]

Jordan: +962 777 841 777

Serving the MENA Region’s Strategic Sectors

Energy and Water Technology and Services

Catalyst Private Equity Fund I Limited

Documents

Catalyst Private Equity - World Banksiteresources.worldbank.org/MENAEXT/Resources/P2C... · · 2011-06-27Catalyst Private Equity is a specialized investment company, ... with Project