Nos Nova As · OSL:NOSN
Nos Nova As — Horisont Energi — Investor Presentation (January 2021)
35 slides from Nos Nova As's investor presentation, Jan 26, 2021
Slide 1: Horisont Energi | Company presentation
Horisont Energi | Company presentation January 2021 1
Slide 2: Important information
Important information This company presentation (the “Presentation”) has been prepared by Horisont Energi AS (the “Company”) solely for information purposes. This Presentation does not constitute any recommendation to buy, sell or otherwise transact with any securities issued by or pertaining to the
Slide 3: Objective: A top-tier European carbon tech company
Objective: A top-tier European carbon tech company First to market with world scale 1 blue ammonia Deliver cost-competitive clean ammonia to the global market Become the preferred supplier of clean ammonia in Northern Europe 2 The carbon storage cost leader Europe’s preferred carbon storage provider
Slide 4: Agenda
Agenda Market opportunity Project overview Management team Economics Appendices 4
Slide 5: Critical to decarbonize ammonia production
Critical to decarbonize ammonia production Critical market growing steadily Large source of CO2 emissions globally Ammonia production volume Sources of CO2 emissions Industrial CO2 emissions, by sub-source 250 35 6 1.7% CAGR Ammonia production p.a. (million metric tonnes) Other 4.9 30 5 200 Transp 2
Slide 6: Horisont Energi: Aligned with EU's new taxonomy
Horisont Energi: Aligned with EU’s new taxonomy Specific technical screening- The six environmental goals criteria in the EU Taxonomy 1. Limiting climate change Industry 2. Climate adaptation • Horisont Energi is committed 3. Sustainable use and to comply with at least one protection of water and Ag
Slide 7: Strong demand growth for (clean) ammonia
Strong demand growth for (clean) ammonia Current verticals: Fertilizer and industry Emerging verticals: Fuel and power 350 Marine fuel 300 1.4% CAGR Ammonia considered a highly viable alternative fuel for maritime transport, with DNV-GL expecting its share of the +150m tonnes of new ammonia fuel con
Slide 8: How can carbon-free compete?
How can carbon-free compete? Ammonia production cost benchmark Comments 900 • Two types of ammonia offer clean production 800 without CO2 emissions; Blue and Green. • Green ammonia is more challenging in order 700 to compete on cost with blue ammonia 600 • Key question; How to make Blue ammonia cost
Slide 9: Agenda
Agenda Market opportunity Project overview Management team Economics Appendices 9
Slide 10: Horisont Energi has a breakthrough solution
Horisont Energi has a breakthrough solution Project Barents Blue - The First World Scale Blue Ammonia project 1 Access to low-cost gas feedstock 1 Natural gas 2 • Gas 80% of ammonia cost, ex CCS 30-45 USD/ton cost reduction from access to • Barents gas abundant and high low cost gas feedstock CO2 tr
Slide 11: Clear path to cash flow
Clear path to cash flow Final Investment Decision (FID) Concept phase FEED phase Construction Operational 1 SynCORTM Ammonia Q1-Q3 Q3-Q2 Q2-Q4 23 Q4 2024 2021 2021-22 2022-24 Onshore plant 2 Q1-Q4 Q4-Q3 Q3-Q4 Q4 2024 2021 2021-22 2022-24 CCS solution Fully funded following Low counterparty risk prov
Slide 12: Large scale onshore ammonia production system
Large scale onshore ammonia production system Autothermal reformer Comments • Proven and competitive ammonia production technology (SynCORTM) developed by Haldor Topsøe • Production process based around an autothermal reformer, requiring limited staffing whilst allowing for automation and remote ope
Slide 13: First pure CCS company offshore Norway
First pure CCS company offshore Norway CCS concept description Comments • Expect to be the lowest CO2 storage cost in the market PATENT PENDING • Scalable, energy efficient and flexible • Additional value from large-scale, long-term CO2 storage assets • Proof of concept: • Signed MoU with a major Eu
Slide 14: Ready to build with established partners…
Ready to build with established partners… Permitting & FEED Finance Construction Operation Ammonia plant Infrastructure Fund • 3 onshore sites being • Currently in advanced talks • Key technology and service • ASCO to operate onshore evaluated with 6 infrastructure funds by Haldor Topsøe base facili
Slide 15: …and enthusiastic local and national Gov't
…and enthusiastic local and national Gov’t Local support National support • “Will provide local jobs” • Strong national push to develop CCS infrastructure in Norway • Strong local support for local, green jobs and value generation from Source: Finnmarksposten, Government.no 15
Slide 16: Agenda
Agenda Market opportunity Project overview Management team Economics Appendices 16
Slide 17: Who we are
Who we are • Founded in 2019 and based in Stavanger on the western coast of Norway • Organized with competent and experienced personnel for: ✓ Offshore carbon facilities developments; and ✓ Onshore hydrogen and ammonia facilities development 17
Slide 18: Team with 350+ years of experience
Team with 350+ years of experience Head of HSEQ and Drilling Head of Reservoir Technology Ellen Braune Ronald Maritvold • 38 years of experience from Hydro, • 40 years of experience from Elf Chief Executive Officer & Board Member Saga Petroluem, Statoil, BP, Revus and Aquitane, Elf Italiana, Mobil N
Slide 19: Board of directors with strong credentials
Board of directors with strong credentials Board of directors Governance principles Chairman of the Board Chief Executive Officer & Board Member • Open and shareholder-friendly structure Kåre Johannes Lie Bjørgulf H. Eidesen • 48 years of experience from • 16 years of experience from Knutsen OAS, St
Slide 20: Agenda
Agenda Market opportunity Project overview Management team Economics Appendices 20
Slide 21: Each operation is competitive standalone
Each operation is competitive standalone Ammonia production: Energy intensity Carbon Capture & Storage: CAPEX Natural Gas Consumption per tonne of Ammonia Investment Cost per unit of CCS capacity 40.0 5,000 MMBtu per tonne ammonia -15% 4,000 NOK per tonne CO2 30.0 3,000 -70% 20.0 2,000 10.0 1,000 0
Slide 22: Overall economics robust to commodity risk
Overall economics robust to commodity risk EBITDA-margin: With historical ammonia and natural gas prices Comments 700 • Despite added CCS costs, Horisont Energi would have been profitable every single year since 2005, earning an average 600 annual EBITDA of USD 60+ million 500 580m • Analysis based
Slide 23: Substantial expansion potential identified
Substantial expansion potential identified Potential growth plan Potential capacity buildout 2,500 5 • Current focus is on executing Phase 1 described previously, Ammonia production (k tonnes p.a.) but Horisont Energi has identified potential for three more CCS capacity (m tonnes p.a.) ammonia and C
Slide 24: Long term funding plan
Long term funding plan Capital uses 2021-2025 Capital sources 2021-2025 2,500 2,500 2,000 2,000 116 110 1,500 1,500 1,658 1,474 1,658 1,000 1,000 1,474 500 500 44 26 184 369 184 369 38 338 300 26 237 210 - 145 75 - 110 53 - 54 23 20 21 - 32 8 - - 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Pro
Slide 25: Investment highlights
Investment highlights • Horisont Energi will be the world’s first large scale provider of carbon free (“Blue”) ammonia, producing in excess of 1,000,000 gross The first carbon free tonnes of clean ammonia from its plant in Finnmark, Norway. energy company • In addition, Horisont Energi will be the f
Slide 26: Agenda
Agenda Market opportunity Project overview Management team Economics Appendices 26
Slide 27: Company structure
Company structure Company structure Comments • Equinor and Horisont Energi signed an MoU on 18 November detailing the key terms of a collaboration on developing “Project Barents Blue” Equinor ASA Horisont Energi AS Partner Issuer • SPVs will be established for each revenue stream: 50% 50% 1. Onshore
Slide 28: Further potential as main carrier of hydrogen
Further potential as main carrier of hydrogen Hydrogen demand expected to grow fast… …but ammonia is key as energy carrier ~665 TWh • Since hydrogen has 30-40% lower energy density 700 than ammonia, it requires more space to transport, making it a less effective energy carrier 600 • At atmospheric p
Slide 29: CCS can decarbonize ammonia significantly
CCS can decarbonize ammonia significantly CO2 emissions avoided, by ammonia decarbonization option Comments • Carbon capture & storage (CCS) offers the greatest 0.5 potential to reduce emissions from ammonia production • By 2021 the new EU Taxonomy will be implemented, CO2 emissions prevented by 205
Slide 30: P&L and balance sheet
P&L and balance sheet P&L (NOK) Balance sheet (NOK) H1 2020 2019 H1 2020 Sales revenue 0 Assets Wages, salaries and social security cost 2 423 207 Inventory 50 000 Other operating expenses 3 824 521 Receivables 39 375 Operating profit/loss - 6 247 728 Bank deposits, cash etc 989 360 657 429 Financia
Slide 31: CO2 Injection Solution
CO2 Carrier CO2 Injection Solution Onshore Control Room Offshore off-loading system Power & control cable to shore CO2 injection riser CO2 injection system Patent Pending 31
Slide 32: Core values and culture
Core values and culture BRAVE • Innovation and results are central to all that we do OPEN • We have high ethical standards for ourselves and our suppliers • Integrity and transparency are core principles for our business A TRUST-BASED INNOVATION AND A BETTER CLIMATE conduct CULTURE, DIVERSITY, RESUL
Slide 33: HSE Culture
HSE Culture • Forward looking HSE improvement through proactive kpi’s • Monitoring and handling of quality events to proactively reduce probability of accidents FORWARD WE CARE KNOWLEDGE AND • We care for our colleagues well being and mental LOOKING HSE HOLISTIC health IMPROVEMENTS UNDERSTANDING • K
Slide 34: Ethical Code of Conduct
Ethical Code of Conduct Short management summary of our Code of Conduct Ethics and transparency are key The Code is fundamental to our business conduct and let us operate sustainably We respect communities, people and human rights, and act with integrity We promote fair competition and work against
Slide 35: CCS in Norway
CCS in Norway • 1996 Sleipner CO2 injection started • 2007 Snøhvit CO2 injection started • 2014 Norwegian CO2 storage legislation for storage of CO2 from third parties (exploitation licenses) • 2019 First CO2 storage license, no EL001 «Aurora», awarded to Northern Lights • 2019 Resolution to the Lon
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