Slide 1: Capital Markets Update and Q1 2023
Capital Markets Update and Q1 2023 4 May 2023
Slide 2: About this presentation
About this presentation THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATED AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURI
Slide 3: Today's presenters
Today’s Jan Kielland Chief Executive Officer Ingar Bergh Chief Financial Officer presenters Philipp Staggat Frank Ligthart Chief Product Officer VP Strategic Bus. Dev. Sumitomo SHI FW Wayne G. Thomson Tone Bekkestad Board member Chief Marketing Officer
Slide 4: Q1 2023 review, Strategic roadmap, Value proposition
Q1 2023 review Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 5: Agenda
Q1 2023 review Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 6: Change of company name and contemplating uplisting
Change of company name and contemplating uplisting CO2 Capsol changing name to Capsol Technologies ‒ Rebranding reflects the company’s move from offering one solution towards offering a portfolio of carbon capture solutions ‒ All solutions based on the same energy-efficient core process ‒ Important
Slide 7: Q1 2023 review
Q1 2023 review
Slide 8: Q1 2023 highlights
Q1 2023 highlights Capsol EoP™ gaining traction in energy-from-waste – first project in Switzerland Awarded contract for a feasibility study from KVA Linth in Switzerland, full-scale deployment of 100 000 tonnes CO2 Awarded engineering study for negative-emissions plant in Sweden Confirming Capsol’s
Slide 9: Operational review
Operational review
Slide 10: Expanding CapsolGo offering with CO2 liquefaction unit
Expanding CapsolGo offering with CO2 liquefaction unit Adding liquefaction test capabilities to CapsolGo® • Rental and service contract with a major German energy company for the delivery of a CO2 liquefaction unit that can be used together with the CapsolGo® carbon capture demonstration unit Curren
Slide 11: Preferred supplier program for key process equipment
Preferred supplier program for key process equipment Establishing a preferred supplier program, enabling increased value proposition to emitters, and preparation of equipment suppliers for a global deployment of specialised large-scale carbon capture projects Signed MoU (Memorandum of Understanding)
Slide 12: Financial review
Financial review
Slide 13: Continuing to build pipeline and partnerships
Continuing to build pipeline and partnerships Q1 2023 financial highlights The pipeline continued to grow, ~100 projects now in initial sales phase, and Revenue NOK 4,2 million Pre-tax profit NOK -10.3 million further 6 projects has moved from sales phase NOK 6.9 million in Q4’22 NOK -9.3 million in
Slide 14: Revenue growth expected from Q2
Revenue growth expected from Q2 8,0 Revenue (NOK million) Pre-tax profit (NOK million) 0,0 Q3 Q4 Q1 22 22 23 Revenue of NOK 4.3 million, down from Q4 2022 as first 7,0 CapsolGo® was coming of the first contract and CapsolGo 2 -2,0 only starting its first contract by the end of the quarter. 6,0 Total
Slide 15: Comfortable financial position
Comfortable Cash position and committed spend (NOK million) financial position "Green loan" 12 Contracted net revenue (EBITDA) 47 Dynamic ramp-up with flexible cost base Debt Service NOK 38.5 million in cash by end of Q1 2023 Start of period -7 38 Committed spend and committed revenue leaves a capit
Slide 16: Capital Markets Update 2023
Capital Markets Update 2023
Slide 17: Agenda
Q1 2023 review Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 18: Path to net zero represents major CCS opportunity
Path to net zero represents major CCS opportunity The target What it takes The opportunity To avoid irreversible climate ~8 billion tonnes of CO2 capture per Potential for EUR ~62 billion in CO2 change, CO2 emissions need to be annum by 2050 capture technology licensing reduced to net zero by 2050 r
Slide 19: Capsol at a glance
Capsol at a glance Accelerating the world’s transition to a carbon-negative future • Highly competitive carbon capture technology (safe, flexible and cost-efficient) • Based on potassium carbonate as solvent and applicable to all CO2-intensive industries worldwide • Proven solution with 4 000+ opera
Slide 20: CCS market size and outlook
CCS market size and outlook CO2 captured per year – Rystad Energy 1.6dg Scenario 9 000 7 849 6 604 8 000 Energy Industry Power Removal (BECCS & DAC) Million tons capture capacity installed 7 000 ~4 000 plants equivalent to 6 000 3 581 Stockholm Exergi 5 000 4 000 1 471 3 000 ~1 000 plants 475 @ 400
Slide 21: Incentives making CCS projects viable in key markets
Incentives making CCS projects viable in key markets North America at the forefront Emissions covered in key markets EU ETS prices on sharp uptick USD/Mt CO2 emissions covered (Mt) Carbon incentive price (USD/Mt) 140 130 2 4001 120 100 99 85 88 87 85 80 USD 80/Mt 1 600 If incentive prices increase 6
Slide 22: Approaching value inflection point for CCS
Approaching value inflection point for CCS Market drivers making carbon capture increasingly attractive Market drivers Carbon capture incentives vs. cost Illustrative CO2 capturing incentives are expected to increase globally1 EUR per tonne CO2 captured All-in capture costs are expected to decrease
Slide 23: Capsol's efficient technology makes CCS viable for more emitters
Capsol’s efficient technology makes CCS viable for more emitters Reduced energy Low operational risk Safe and consumption environmentally and capture cost friendly 23
Slide 24: Mature technology delivering commercial traction
Mature technology delivering commercial traction Technology 3 successful pilots Demonstration unit 2 demonstration Patent license Collaboration developed over 20 completed commercialised units in operation agreement with agreements years1 Stockholm Exergi In the EU and the US, Designed to One in Ger
Slide 25: Cooperating with industry leaders to accelerate growth
Cooperating with industry leaders to accelerate growth Value enhancement Sales and marketing Plant delivery Cooperating with engineering and Working with key suppliers to reduce Partnering with global leaders to Ambition carbon capture cost capture market share construction partners for efficient de
Slide 26: Capital light, low risk and high margin licensing model
Capital light, low risk and high margin licensing model Capsol is offering a highly scalable licensing model Currently three income streams ‒ Paid engineering/process design ‒ Revenues from demonstration units ‒ Licensing fees No project construction risk Mean and lean organisation – marketing power
Slide 27: Four strategic pillars supporting growth and long-term value creation
Four strategic pillars supporting growth and long-term value creation Strategic focus 2025 goals 2030 goals Technology Continue to develop and protect cost advantage to ensure long-term competitiveness 5-10% Technology licensing market share Product Commercialise new products and services to increas
Slide 28: Illustrative revenue potential towards 2040
Illustrative revenue potential towards 2040 2023-2030 +4,200 2031-2040 Capacity mtpa Based on Rystad Energy estimates ~1 000 mtpa sanctioned ~5 200 mtpa sanctioned X License fee EUR 7-12 per ton = Market size EUR 7-12 bn EUR 29-50 bn From Technology licensing only (1,000 mtpa x EUR 7-12/t) (4,200 mt
Slide 29: Cost efficient capture for the world's largest industrial emitters
Cost efficient capture for the world’s largest Q1 2023 review industrial emitters Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 30: Philipp Staggat
Philipp Staggat Industry expertise • Power plants • Rotating equipment Philipp Staggat Chief Product Officer • Carbon capture Professional experience • Former Business Development Manager, Capsol Technologies • Former Strategy Project Manager, Project Manager Gasturbine Test Center and Lead Commissi
Slide 31: Efficient capture process based on reusing energy
Efficient capture process based on reusing energy • The challenge: Separate CO2 from the exhaust of industrial plants so that it can be stored or utilised • Capsol Technologies has developed a process to do this safely at low cost • The process is based on potassium carbonate to bind the CO2 • This
Slide 32: Capsol End-of-Pipe technology readiness
Capsol End-of-Pipe technology readiness TRL (Technology Readiness Level) Capsol EoP combined system ~TRL 7-8 Actual system proven in operational environment Deployment System complete and qualified System prototype demonstration in operational environment Technology demonstrated in relevant environm
Slide 33: Energy efficiency enables lower operating costs
Energy efficiency enables lower operating costs Energy consumption1 (GJ/t) Opex distribution (actual project) Levelized carbon capture2 cost (EUR/t) -40% -72% 36-58 10% Maintenance 10% Labor 2,5 GJ thermal2 10% Solvent 25-31 70% Energy ~60/40% 0,7 GJ electrical only opex/capex split Traditional amin
Slide 34: Product offerings to cover large emitters' CO2 capture technology needs
Product offerings to cover large emitters’ CO2 capture technology needs across industries CapsolGo® demonstration units CapsolEoPTM (End-of-Pipe) CapsolGT® for gas turbines 700 tonnes CO2/year 100 000+ tonnes CO2/year 12 000 to 400 000+ tonnes CO2/year EUR 150k - 250k per month EUR 7-12/tons install
Slide 35: Targeting large industries with high CCS potential
Cement Biomass Gas turbines Energy-from-Waste Targeting large industries with high CCS potential Share of CO2 capture in 20302 Cement 30% Biomass / BECCS1 8% • Largest industrial emitter • Increasing need for carbon removal as the world lags path to net zero • Hard to abate with other alternatives t
Slide 36: Value proposition for cement
Cement Biomass Gas turbines Energy-from-Waste Value proposition for cement Removing need for costly steam generator while handling impurities at low cost Capturing CO2 from cement is the only viable solution for deep decarbonisation • Responsible for ~8% of global CO2 emissions • ~2/3 of emissions c
Slide 37: Value proposition for biomass / BECCS
Cement Biomass Gas turbines Energy-from-Waste Value proposition for biomass / BECCS Offering the lowest opex through additional heat delivery, safe for residential areas CO2 capture plant independent from parent plant and can be Biomass plants can become CO2 negative run solely on electricity • Inci
Slide 38: Value proposition for open-cycle gas turbines
Cement Biomass Gas turbines Energy-from-Waste Value proposition for open-cycle gas turbines Ability to handle low CO2 concentration – potential for additional power generation Capturing CO2 while generating additional electricity • CapsolGT® carbon capture solution for open-cycle gas turbines – capt
Slide 39: Value proposition for Energy-from-Waste
Cement Biomass Gas turbines Energy-from-Waste Value proposition for Energy-from-Waste Fully electric and safe solution fit for residential areas with large integration potential Waste incineration is part of the circular economy and a source for negative emissions • Waste handling represents a major
Slide 40: CapsolGo: Helping emitters to accelerate CCS projects
CapsolGo®: Helping emitters to accelerate CCS projects Two fully equipped 20ft containers A ready-to-catch unit containing absorber and desorber columns, flue gas compression, instrumentation, control terminal, piping, insulation and trace heating, air cooling unit and absorber tank Carbon capture w
Slide 41: Frank Ligthart
Frank Ligthart Industry expertise • Energy Generation • Waste-to-Energy (Energy-from-Waste) • Waste-to-Fuels Frank Ligthart • Carbon Capture VP Strategic Bus. Dev. Sumitomo SHI FW Professional Experience • VP Strategic Business Development, Sumitomo SHI FW
Slide 42: Sumitomo SHI FW "SFW"
Sumitomo SHI FW ”SFW” Powering a decarbonized world for everyone
Slide 43: SFW markets, sells and delivers projects based on own/partnered tech
SFW markets, sells and delivers projects based on own/partnered tech 43 A global business with 1,800 highly-skilled people Sumitomo at a glance Global presence and track record in America, Europe and Asia • Part of Sumitomo Heavy Industries (JPN), roots in Foster Wheeler (USA) and Ahlstrom (FIN) • M
Slide 44: Sumitomo's perspective on CCS market: Opportunities and key drivers
Sumitomo’s perspective on CCS market: Opportunities and key drivers 44 Global CO2 emissions continue to grow - slow action requires aggressive decarbonization scenarios Government policies a driving force for decarbonization Voluntary carbon • Both carbon capture and carbon removal is considered ess
Slide 45: European WtE market represents a significant opportunity
European WtE market represents a significant opportunity 45 Over 550 WtE plants emitting 115Mt CO2 annually of which ~44% is of fossil origin European market is a forerunner CO2 emissions from WtE plants - In 2022, EU parliament approved inclusion of WtE (fossil CO2) in the EU ETS scheme starting 20
Slide 46: Capsol's proven technology complements SFW's carbon capture portfolio
Capsol’s proven technology complements SFW’s carbon capture portfolio 46 4 key qualities making Capsol the right partner for SFW 1• Low-cost HPC solvent with no HSE1 risk • Well-proven in CC in O&G applications • Widely and freely available • Low management cost •2 Capsol’s patented heat recovery te
Slide 47: SFW and Capsol teaming up to deliver standardised CCUS solutions
SFW and Capsol teaming up to deliver 47 standardised CCUS solutions The non-exclusive partnership enables the parties to develop and deliver standardized carbon capture plants for Waste-to-Energy (WtE) and Biomass-to-Energy (BtE) plants 2022 December Partnership signed Capsol Technologies • Has pref
Slide 48: Westenergy Vaasa project deep-dive
Project deep-dive Joint offering between SFW and Capsol providing CC1 plants to provide biogenic CO2 for liquid synthetic methane and enable carbon negativity Westenergy for the Finnish company Westenergy Vaasa • Carbon Capture system: HPC2 • Project commisioning: 2025 • Expected start of FEED3: Fal
Slide 49: Focus on WTE and BTE in the Nordics
Go-to-market strategy for partnership with Capsol Technologies 49 Focus on WTE Partnering − MOU with Capsol Technologies and BTE in the Nordics Customer segments / Industries − Retrofits in Waste (WECCS) and Biomass (BECCS) − New-built wasteWOIMA® Geographic areas − Nordics and Baltics, with large W
Slide 50: Accelerating incoming demand driving sales pipeline growth
Accelerating incoming demand driving sales Q1 2023 review pipeline growth Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 51: Steep increase in incoming demand
Steep increase in incoming demand 1 h Active leads 100 wt gro # of leads g. Global pipeline of CCS av 50 General increase in number of +3 0% projects keeps growing at projects globally a fast pace 2 10 2020 2021 2022 YTD 2023 2 Successful CapsolGo® Successful demonstration demonstration project and
Slide 52: Pipeline: ~110 active leads totaling more than 30 million tonnes of CO2
Pipeline: ~110 active leads totaling more than 30 million tonnes of CO2 Sales engineering Paid engineering Engineering Final investment In operation studies1 to build2 decision (FID)3 Projects 106 5 1 Million tonnes ~30+ 1.19 0.8 CapsolGo® fast-track2 Projects 3 Technology licensing agreement4 Servi
Slide 53: Proven traction with BECCS in Europe and the US
Proven traction with BECCS in Europe and the US Awarded licensing agreement in Europe’s first large-scale negative emissions plant Stockholm Exergi, Sweden Biomass plant, Sweden United States Germany 800 000 ~170 000 ~100 000 ~200 000 tonnes of CO2 per year tonnes of CO2 per year tonnes of CO2 per y
Slide 54: Studies for the largest cement producers globally
Studies for the largest cement producers globally 2023 expected to be the breakthrough year United Kingdom Location undisclosed Picture ~700 000 ~1 000 000 tonnes of CO2 per year (full-scale deployment) tonnes of CO2 per year (full-scale deployment) Capsol to provide feasibility engineering. Expecte
Slide 55: Waste-to-Energy segment is accelerating
Waste-to-Energy segment is accelerating New projects, solid execution and key partners KVA Linth, Switzerland Öresundskraft AB, Sweden Central Europe Westenergy, Finland ~100 000 ~200 000 ~200 000 ~200 000 tonnes of CO2 per year (full-scale tonnes of CO2 per year (full-scale tonnes of CO2 per year (
Slide 56: Hitting the ground running in gas turbine carbon capture
Hitting the ground running in gas turbine carbon capture Maturing offering on back of recent success in other market segments Global approach Partnerships Selected projects Technical maturity Being to developed to bring technology to Active on sales and marketing Developing and maturing technology m
Slide 57: First licensing revenue from pioneering project in 2024
First licensing revenue from pioneering project in 2024 Selected as the preferred solution for Europe’s first large-scale negative emissions plant First technology licensing agreement with Stockholm Exergi Awarded in July 2022 Proven technology Competition with all mature technologies HPC Safety of
Slide 58: Entering the world's largest CCS market
Entering the world’s largest CCS market Q1 2023 review Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 59: Wayne G. Thomson
Wayne G. Thomson Industry expertise • Oil and gas • Technology • Carbon capture Professional experience Wayne G. Thomson • Former chairman and CEO, Svante Board member • Former director, Cenovus
Slide 60: Geographical expansion successfully initiated
Geographical expansion successfully initiated Strengthening capabilities and reach in Germany and UK – US next Q1 2023 Q2 2023 US entry next Berlin office established UK served from Norway • Largest cumulative CO2 emitter • Largest CCS market Rationale Rationale • Opening office in H2 2023 Largest L
Slide 61: Planned US CCS projects point to strong growth
Planned US CCS projects point to strong growth Constituting more than 100 Mt CO2 additional capture capacity with more to come Operational and planned capture capacity in the US Capacity by application in the US CO2 capture capacity (mtpa) CO2 capture capacity (mtpa) and % of total +26% CAGR 129,1 1
Slide 62: Path to net zero in the US requires accelerated ramp-up
Path to net zero in the US requires accelerated ramp-up >5 GtCO2 reductions needed with CCS expected to play a major role US CO2 emission reduction towards 2050 – net zero trajectory GtCO2 per year 7 6 2022 level 5,3 4.5x emission reduction potential in 5 the US compared to Europe towards 20301 4 3
Slide 63: The US has clear advantages for CCS project execution
The US has clear advantages for CCS project execution Infrastructure in place, economies of scale and fast permitting Access to transport and storage US carbon capture pipelines and projects There are currently more than 9 000 km CO2 pipelines globally and By 2050 in Net Zero America study1 the US a
Slide 64: Regulatory push has sparked CCS activity in the US
Regulatory push has sparked CCS activity in the US While the sector benefits from established infrastructure and economies of scale Subsidies US carbon capture cost Current CCS pipeline USD / tCO2 CapsolGT to # of projects In November 2021, the US enacted the reduce cost level Infrastructure Investm
Slide 65: US emitters need reliable and cost-efficient CCS technology
US emitters need reliable and cost-efficient CCS technology Energy producers and • Many of the CCS projects to date have been unreliable and costly industrials need to solve CO2 emissions to prosper • Reliable and low-cost carbon capture technology is key to creating a robust CO2 capture market • Ca
Slide 66: Capsol's expansion into US prompted by commercial traction
Capsol’s expansion into US prompted by commercial traction and advanced partner dialogues Commercial traction with projects Development of local ecosystem of initiated in all target segments partners initiated In contract negotiations for CapsolGo Sales Paid Potential to expand existing partnerships
Slide 67: Concluding remarks and Q&A
Q1 2023 review Strategic roadmap Value proposition Commercial traction International expansion Concluding remarks and Q&A
Slide 68: Several key milestones expected next 12-18 months
Several key milestones expected next 12-18 months De-risking the path towards long-term goals achievement Awarded CapsolGo® Licensing Project Full-scale New engineering contracts agreements FID1 operation partnerships studies In Europe, US and First unit in the US Within segments First FID Generatin
Slide 69: 2030 goals for long-term value capture
2030 goals for long-term value capture Ambition 1 Make point source carbon capture accessible and viable for more emitters Top 3 position in target segments: cement, biomass, 2 waste-to-energy and gas power plants Becoming a leading global carbon capture technology company 3 Achieve 5-10% carbon cap
Slide 70: Q&A
Q&A
Slide 71: Appendix
Appendix 71
Slide 72: Enabling a sustainable future
Vision Accelerate the world’s transition to a carbon- negative future Enabling a sustainable future Mission Deliver energy-efficient and safe carbon capture technologies 72
Slide 73: Where Capsol is today
Where Capsol is today Key milestones Contracts Backlog K tonnes CO2/year 2003 2008 2016 2022 CapsolGo® • First unit in operation in Sweden, demonstration units 1.4 • Second unit on two 6-month campaigns in Germany from Q1 Commercialization: first commercial 2023 + liquefaction Technology development
Slide 74: Value chain overview
Value chain overview Carbon capture EPC1 Operations and Liquefaction & Transport Storage technology maintenance intermediate storage • Technology • Client selects • Client selects • Client selects • Clients selects • Client selects licensed out independent independent independent independent indepen
Slide 75: Eickmeyer & Sumitomo partnership
Eickmeyer & Sumitomo partnership Increasing capacity Developing and delivering CO2 capture plants Eickmeyer providing process design and engineering services for Developing and delivering standardized carbon capture plants for Energy-from- carbon capture plants utilizing hot potassium carbonate (HPC
Slide 76: Hitachi collaboration & Siemens Energy partnership
Hitachi collaboration & Siemens Energy partnership Carbon capture initiative Preferred supplier MoU to collaborate on initiatives to implement Capsol’s Hot Potassium Non-exclusive MoU Carbonate carbon capture technology on Energy-from-Waste (EfW) plants Siemens Energy to be a preferred equipment sup
Slide 77: Patent portfolio overview
Patent portfolio overview Patent family 1: Patent family 2: Patent family 3: Patent family 4: Patent family 5: Low emission Combined storage Method and plant for Thermal power plant Purification of flue thermal powerplant solution for natural transport of rich gas with CO2 gas from marine gas and CO
Slide 78: Management
Management Jan Kielland, Chief Executive Officer Cato Christiansen, Chief Technology Officer >40 years experience with management and board positions in Former Shell, SPT Group and the Norwegian Ministry of the energy sector internationally. MSc in Petroleum Engineering Petroleum and Energy (Carbon
Slide 79: Board of directors
Board of directors Endre Ording Sund Einar Chr. Lange Wayne G. Thomson Chair Board member Board member • >40 yrs experience with mgmt. and • Largest investor in CO2 Capsol • Extensive international career as a top board positions in the energy, banking • Mgmt. experience from shipping and executive
Slide 80: Risks and mitigating actions
Risks and mitigating actions Key risk factors Mitigating actions • Licensing model highly scalable with limited resources • Partnering with big global players to greatly extend reach, capacity and capabilities Small player • A clear strategic roadmap for organic growth and opportunistic approach to
Slide 81: Madserud Allé 2, Oslo, Norway
Madserud Allé 2 0274 Oslo Norway Our vision is to accelerate the worlds capsoltechnologies.com transition to a carbon negative future