Jericho Energy Ventures Inc · TSXV:JEV
Jericho Energy Ventures — Investor Presentation (February 2021)
36 slides from Jericho Energy Ventures's investor presentation, February 2021
Slide 1: Advancing a Low-Carbon Energy Transition
ADVANCING A LOW-CARBON ENERGY TRANSITION
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT • Presentation and Reader Advisory This confidential company overview presentation has been prepared by Jericho Oil Corporation (together with its affiliates, “JCO”) solely for informational purposes. This presentation includes certain statements that may be deemed forward-
Slide 3: Jericho Energy Ventures: Our Vision
JERICHO ENERGY VENTURES OUR VISION • Jericho Energy Ventures envisions a transition towards affordable, accessible and resilient clean energy WHY LOW-CARBON ENERGY • SOLUTIONS Meeting today’s demands while solving tomorrow’s climate challenges for Fortune 500 and sustainability-focused corporations
Slide 4: Investment and Value Proposition
INVESTMENT AND VALUE PROPOSITION 1 • Identify pre-revenue or early-revenue Technology Co. with Disruptive Product growth companies with promising h2 technology and applications • Portfolio of venture stage companies 2 with synergistic attributes in the hydrogen, energy storage, and CCUS Large and Gr
Slide 5: The Energy Transition: Resilient and Low-Carbon
THE ENERGY TRANSITION: RESILIENT AND LOW-CARBON Government and Public Policy Countries that have adopted the Paris Climate Accord Largest Economies have announced Net Zero Carbon Emissions targets (U.S. China, Japan, EU) Degree Limit on Global Temperature Increase (vs. pre-industrial) Trillion Corpo
Slide 6: The Energy Transition Movement
THE ENERGY TRANSITION MOVEMENT… Growth in total assets of divesting institutions¹ What is the net result ? 1200 14 • The cost of capital for hydrocarbon projects reaching as high as 20%, where renewable projects are as low as 3% 12 • Renewable Capex is slated to surpass Oil & Gas drilling capex in 2
Slide 7: …Will Have a Multi-Faceted Approach
…WILL HAVE A MULTI-FACETED APPROACH Greenhouse Gas Emissions by Economic Sector¹ Main Levers for De-Carbonization Low & Zero Renewable Carbon Energy Carbon Energy Capture & Efficiency Energy Sources Storage Carriers Global CO2 intensity declining, CO2 emissions rising Tonnes of CO2 / thousand $2018
Slide 8: The Price of Carbon
THE PRICE OF CARBON What is Carbon Pricing? Key details on Regional, National and Subnational Carbon Pricing • GOAL: Capture the external costs of greenhouse gas (GHG) emissions and ties • 64 Carbon Pricing Initiatives implemented or scheduled for implementation them to their sources through a price
Slide 9: H2 Is Key to a Low Carbon Future
H2 IS KEY TO A LOW CARBON FUTURE Hydrogen is a clean molecule set to decarbonize our energy needs… Hydrogen (H2) – An Advantaged Molecule: • Most abundant and simple element in the universe, colorless and odorless • Clean-burning, zero emission fuel for storing and releasing energy and to be used as
Slide 10: Highly Versatile – Multiple Market Applications
HIGHLY VERSATILE – MULTIPLE MARKET APPLICATIONS Hydrogen Hydrogen Hydrogen Hydrogen Hydrogen 10
Slide 11: The Energy Transition – Role of Hydrogen
THE ENERGY TRANSITION – ROLE OF HYDROGEN 1 Enable Large-Scale, • Renewable power (wind, solar, hydro) slated to become 56% of the electricity mix, increasing between 3-5x the current deployments by 20505 Efficient Renewable • Timing of variable and intermittent electricity supply and demand is not w
Slide 12: The Energy Transition – Role of Hydrogen
THE ENERGY TRANSITION – ROLE OF HYDROGEN 6 Serve as Feedstock • h2 is central to many primary chemical industrial processes including production of ammonia and methanol and to process crude oil into refined fuels such as gasoline and diesel – the use of green h2 would aid in decarbonization using •
Slide 13: Hydrogen Across the Value Chain
HYDROGEN ACROSS THE VALUE CHAIN • Production, storage, transportation and usage across multiple end markets • End markets include: • Power Generation / Grid Balancing • Transportation • Fuel for Industry • Feedstock for Industry • Fuel for Residential and Commercial Buildings Jericho Energy Ventures
Slide 14: Jericho Energy Ventures
JERICHO ENERGY VENTURES Macro tailwinds, driving trillions in capital flows… …Encouraging Investment in Decarbonization Solutions • Jericho Energy Ventures envisions a transition towards affordable, • H2 is an advantaged clean molecule with a large and growing global accessible and resilient clean e
Slide 15: Hydrogen Technologies
Advancing a Low-Carbon Energy Transition HYDROGEN TECHNOLOGIES
Slide 16: Disrupting the C&I Boiler Market
DISRUPTING THE C&I BOILER MARKET Problem with Traditional Commercial & Industrial Boiler Systems¹ 25% 35% >85% 40-80% Price Volatility Carbon Intensive GHG Emissions Aged & Inefficient Average Monthly Percentage of Industrial Percentage of Industrial Efficiencies across Historical Price Volatility B
Slide 17: cleanH2steam DCC Boiler Chemical Reaction Solution
The cleanH2steam DCC boiler is a unique zero-emissions hydrogen boiler – a bold step in the evolution of hydrogen technology. Chemical Reaction Solution First principles: the most efficient way to convert H2 and O2 into high-temperature steam 2,804o • cleanH2steam DCC boiler is HTI’s proprietary hyd
Slide 18: Zero Emissions Energy Solution
ZERO EMISSIONS ENERGY SOLUTION CO2 Emissions (lbs / MMBtu) • Breakthrough high-temperature boiler that enables zero- emissions hydrogen to generate heat, steam and Combined Heat & Power (“CHP”) ZERO-EMISSION • Water is the only by-product • No air permit required • 30% greater efficiency than tradit
Slide 19: Product Overview and Market
PRODUCT OVERVIEW AND MARKET Non-Pressure Vessel Pressure Vessel Generate Steam for Heat Generation for Space Heat and Hot Water Generate Steam for Combined Heat & Power Applications Industrial Processes (“CHP”) Applications Commercial Industrial • Shopping malls • Refining and petrochemical • Utilit
Slide 20: Business Model
BUSINESS MODEL Current and Future Business Lines meeting our customers needs. Technology Sales Steam Sales Manufacturer and Provider of hydrogen boiler solutions Seller of Steam as a Service • Sell and install cleanH2steam DCC hydrogen • Future: Develop, finance and own Thermal plants boilers to cus
Slide 21: Addressable Market Size
ADDRESSABLE MARKET SIZE $14bn Annually $28bn Commercial 5-7% Annually¹ Annual CAGR¹ Commercial & Industrial Heating $14bn Annually Industrial 21 ¹ Source: Grand View Market Research, 2020
Slide 22: Industrial Boiler Market
INDUSTRIAL BOILER MARKET $14bn Annually and Growing¹ 37% of the Fossil Fuels Burned in US Industry is to produce Steam¹ ¹ Source: Grand View Market Research, 2020 22 ² Source: “Steam Systems in Industry, Energy Use and Energy Efficiency Improvement Potentials”, Lawrence Berkeley National Laboratory.
Slide 23: Growth Drivers and Prospects
GROWTH DRIVERS AND PROSPECTS Market growth for decarbonized heating solutions will largely be driven by environmental policy standards and large corporates Corporate’s increased The UK and localities focus on sustainability in California have is driving the adoption already banned sales of low-carbo
Slide 24: Managed Pipeline Across Markets
MANAGED PIPELINE ACROSS MARKETS 10+ 19MWe Clients Engaged Sales Pipeline Food & Consumer Chemicals EPCs Beverage Products ¹ Pipeline Data as of 2/25/2021; Sales Pipeline includes client engagement with technical exchanges and non-binding quotes; there is no guarantee pipeline 24 clients turn into re
Slide 25: How It Works
HOW IT WORKS Simplified Process Overview 1 2 3 4 5 Renewable Electrolyser: On-Site cleanH2steam DCC Boiler Commercial, Energy Splits Water Storage Output: Zero-Emissions Industrial & or by Electric serving as on on-demand heat and Power Grid Power Current demand fuel steam at required specs End-Use
Slide 26: Energy Efficiency Illustration
ENERGY EFFICIENCY ILLUSTRATION Standard 60% Waste Heat rejected as GHG Hydrogen-Based ZERO Emissions Solution… Power Plant¹ emissions District ZERO GHG EMISSIONS Energy / Combined 40% Useful Energy Heat & 100% Fuel Input Produced for Electricity Power Plant 71% Useful Energy Produced for district he
Slide 27: Patented Technology Overview
PATENTED TECHNOLOGY OVERVIEW • DCC Combustion produces an exothermic reaction between pure hydrogen and pure oxygen (the combustion oxidizer) creating only local reaction heat and water (as hydrogen burns in the ultraviolet range) • Water immediately flashes to superheated steam in this 5,080oF / 2,
Slide 28: Appendix
APPENDIX .
Slide 29: Market Highlights
MARKET HIGHLIGHTS JEV by the Numbers • TSX-V: JCO • FRA: JLM • OTC PINK: JROOF • Shares Issued & Outstanding – 179,608,142 • Warrants – 49,000,000 • Options – 16,960,000 • Market Cap – 111,357,048 • Closing Price as of January 29th 2021 (CDN) – 0.62 29
Slide 30: Hydrogen: The Basics
HYDROGEN: THE BASICS Electrical-2-Chemical-2-Electrical • Unique to hydrogen is its ability to utilize electrolysis: splitting water into its components by electrical current • An electrolyser converts electrical energy to chemical energy, while a fuel cell converts chemical energy back into useable
Slide 31: How Is Hydrogen Produced Today?
HOW IS HYDROGEN PRODUCED TODAY? H2 production today (blue and grey) • 99% of h2 produced today is made using fossil fuels, accounting for 6% of natural gas demand, 2% of coal and consequently 2.2% of global carbon emissions5 • Most common method, steam methane reforming (SMR), reacts natural gas (pr
Slide 32: Hydrogen Production Cost – H2 Under $2
HYDROGEN PRODUCTION COST – H2 UNDER $2 Green h2 vs. Current Fuel Sources Projected Green h2 vs. Fossil Fuel-derived h2 Policy makers, corporations and investors alike are setting goals that align with driving the cost of h2 below $2 / kg – the point where it competes with alternatives in large-scale
Slide 33: Renewable Penetration Has Reduced Costs
RENEWABLE PENETRATION HAS REDUCED COSTS Certain renewable energy generation technologies have an LCOE that is competitive with marginal cost of existing generation – crucial for green hydrogen generation 33
Slide 34: Renewables Intermittency Problem
RENEWABLES INTERMITTENCY PROBLEM • Renewables represent 63% of all new US electricity generating capacity additions in 1H-2020 (37% NG) • Renewable energy is supplied on an ‘as available’ basis – when the wind is blowing, and the sun is shining • This increase in renewable energy will create the nee
Slide 35: Renewables Intermittency Solution
RENEWABLES INTERMITTENCY SOLUTION 35
Slide 36: Complexity of Energy Transitions
COMPLEXITY OF ENERGY TRANSITIONS The last three energy transitions took ~40yrs to reach 15-20% % of world primary energy consumption A clean molecule is required to help decarbonize a world with ever-growing emissions 36
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