1. Project Overview
CBNX ASIA is the exclusive Asian representative of CBNX Group LLC's CASP technology, building a next-generation low-carbon coke facility in Tongyeong, Korea.
CASP (Carbon Alloy Synthesis Process) is a continuous-flow technology replacing conventional batch coke ovens, commercially validated through Alpha (10,000 t/yr) and Beta (50,000 t/yr) demonstration plants in Ardmore, Oklahoma, USA.
This project constructs a 1,000,000 tons/year coke production facility with 3 CASP modules (330,000 tons each) and integrated co-generation (90 MWh) in Tongyeong, Gyeongsangnam-do. Total funding request: USD 1.5 billion.
Korea's metallurgical coke demand (~25M tons/yr), major offtakers (POSCO, Hyundai Steel), and alignment with the 2050 Carbon Neutrality Policy form the strategic foundation.
2. CASP Technology Advantage
Structural superiority across all metrics: yield, cost, emissions, and labor efficiency.
| Metric | CASP | Conventional | Improvement |
|---|---|---|---|
| Production Yield | 98–99% | 88–90% | +10%p |
| Coal Input / ton coke | 1.35 tons | 1.55 tons | ▼ 13% |
| CO₂ Emissions | 60% of baseline | 100% baseline | ▼ 40% |
| Labor (per 1M tons) | ~100 staff | ~250 staff | ▼ 60% |
| EPA Classification | Minor Source | Major Source | Eased regulation |
| Process Type | Continuous | Batch | Higher uptime |
CASP vs Conventional — Relative Comparison (Conventional = 100)
Lower = better for CO₂, Labor, Energy — CASP shows 35–60% improvement
3. Phase 1 Financial Outlook
Steady-state revenue $454M, EBITDA $262M. Margin of 57.7% far exceeds industry average (20–35%). Excludes carbon credits, subsidies, ESG premiums.
Revenue → EBITDA Bridge (USD Millions)
Revenue
P&L Structure
| Item | USD M | Note |
|---|---|---|
| Coke Sales | $400.0 | 1M tons × $400/ton |
| Power Sales | $54.0 | 90MWh × $80/MWh |
| Total Revenue | $454.0 | |
| Raw Coal Cost | ($220.0) | 1.35M tons × $220/ton |
| Production Cost | ($45.0) | $40/ton + consumables |
| Admin & Maintenance | ($4.0) | $2/ton × 2 |
| EBIT | $185.0 | Operating profit |
| Depreciation Add-back | +$77.0 | CAPEX amortization |
| EBITDA | $262.0 | Margin 57.7% |
4. Valuation
Two-stage framework: Sum-of-Parts (pre-revenue) → EV/EBITDA (operational). Comparable: Sun Coke Energy (SXC) at 5.8x, adjusted upward for ESG + tech premium.
| Stage | Capacity | Low Case | Mid Case | High Case |
|---|---|---|---|---|
| Pre-Money (Current) | 0 | $40M | $75M | $110M |
| Phase 1 (Operational) | 1M tons/yr | $1.57B | $2.10B | $2.62B |
| Phase 3 (Domestic) | 3M tons/yr | $6.29B | $7.07B | $7.86B |
| Global Expansion | 45M tons/yr | $25B | $32B | $40B |
Enterprise Value Growth Trajectory (USD Billions)
High Case shown — Pre-Money $110M → Phase 1 $2.5B = ~25× uplift
5. 10-Year Global Expansion Strategy
Korea → UAE → Southeast Asia. Linear scaling via module replication with zero scale-up risk.
| Market | Target Supply | Est. Revenue (10yr) | Entry Timing |
|---|---|---|---|
| Korea (Domestic) | 25M tons | $8.75B | Year 1~ |
| UAE | 10M tons | $3.50B | Year 5–8 |
| Vietnam | 4M tons | $1.40B | Year 8–10 |
| Indonesia | 4M tons | $1.40B | Year 8–10 |
| Malaysia | 2M tons | $0.70B | Year 8–10 |
| Total | 45M tons | $15.75B |
Target Supply by Market (Million Tons)
6. Capital Structure & Financing
Total USD 1.5B request. Senior Debt 60–70% / Equity 30–40% hybrid project finance structure.
CAPEX Allocation
| Item | USD M | Share |
|---|---|---|
| CASP Modules (3) | $750 | 52% |
| Land Acquisition | $300 | 21% |
| Plant & Utilities | $200 | 14% |
| Co-Generation | $95 | 7% |
| Working Capital | $50 | 3% |
| Contingency | $50 | 3% |
| Total | $1,445 | 100% |
CAPEX Distribution
Financing Structure
| Component | Ratio | Amount |
|---|---|---|
| Senior Debt | 60–70% | $900M–$1,050M |
| Equity (Sponsor / Strategic) | 30–40% | $450M–$600M |
Repayment & Exit
| Parameter | Detail |
|---|---|
| Construction Period | ~3 years |
| Grace Period | 5 years (3 construction + 2 ramp-up) |
| Repayment Tenor | 15 years |
| DSCR Target | ~1.30x |
| Structure | SPV (Limited Recourse) |
| Exit Pathways | Dividend / Strategic Sale / IPO / Licensing |
Key Patents
| Patent Number | Description | Date |
|---|---|---|
| US 7,150,627 B2 | Pre-Furnace Reactor (PFR) | Dec 19, 2006 |
| US 8,110,169 B2 | CASP Full-Process Technology | Feb 7, 2012 |