Slide 1: Third Quarter 2023 Corporate Update
Third Quarter 2023 Corporate Update November 8, 2023 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this Presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including
Slide 3: Ironton Plant Update: Facility Progress
Ironton Plant Update IRONTON FACILITY PROGRESS • Core operations are improving daily; Utilities uptime is averaging 97%, Solvent circulation uptime increased from 47% in July, to 96% in late October • Tech works at scale; despite mechanical challenges, we’ve successfully run 409k lbs feedstock • Ach
Slide 4: Ironton Plant Update: Facility Challenges
Ironton Plant Update IRONTON FACILITY CHALLENGES • Replaced numerous design and installation challenges with permanent solutions • Ironton continuous operations were primarily impaired due to persistent adsorber bead plugging of the final product extruder pelletizer; this requires the installation o
Slide 5: Ironton Plant Update: Operational Targets
Ironton Plant Update IRONTON OPERATIONAL TARGETS • Complete 2-week outage • Plan to initiate plant restart procedures immediately following the outage • Start rates @50% and ramp to 100% • Complete the 4.45MM lbs milestone (December) • Targeting 7-Day performance test prior to the February deadline
Slide 6: On-Spec Product Deliveries Show Tech Works
On-Spec Product Deliveries Show Tech Works Product Quality • Odor • Color • LCA: lower energy consumption than expected will likely lead to better LCA results Initial production for customer samples shipped to US primary distributor Extraction Process Removes Contaminants Sample testing prior to new
Slide 7: Bead Leak has Made Pelletizing the Bottleneck
Bead Leak has Made Pelletizing the Bottleneck Core plant operations operate as designed Successfully processing feedstock until the last step Adsorbent z X Melt & Filter Mix & Mix & Filter Purify Separate Pelletize Extract Settle Adsorber Bead leakage plugs the die plate and prevents fully continuou
Slide 8: Persistent Leaking Beads Took Time to Solve
Persistent Leaking Beads Took Time to Solve Initial Problem Interim Solutions Solution Beads behind leaking weld Prototype #1 Purging to remove beads Install automated screen changer during outage Prototype #2: attempted in Oct; Unsuccessful test run and returned back to prototype #1 Significant bea
Slide 9: The Challenges We are Overcoming
The Challenges We are Overcoming Purification Design Related Purification Installation Related Software & Hardware Issues Scheibel seal leaking Product extruder inlet valve leaking Extruder controls logic Scheibel pump leaking & freezing Final product transfer constraints Safety system false trips M
Slide 10: Seal Design Related Challenges
Seal Design Related Challenges Scheibel Seal Complete redesign and installation Scheduled to be completed during the 2-week outage Scheibel Seal Mixer Seal Improved design to compensate for future power failures Design improvement can sustain 6-8 hours of power failure vs 90 minutes Scheibel Bottom
Slide 11: Operating Efficiency Continues to Improve
Operating Efficiency Continues to Improve Category Initial Performance Current Performance Solvent Inability to efficiently control temperature and Solid control in place; 97% up-time Circulation pressure (May-July) Significant commercial-scale learnings; feed types, Operational IP Was limited to FE
Slide 12: Marked LCA Improvements: Ironton vs Antwerp
Marked LCA Improvements: Ironton vs Antwerp No credits were included kg CO2e / kg PP in the calculated results 2.38 Ironton vs Virgin • Boundless Impact LCA Report 35 based on plant design data % • Fossil-Intense Power Grid 1.54 • Initial operating data shows ~10% improvement over LCA estimates Antw
Slide 13: PCT Financial Update
PCT Financial Update • Agreed in principle to waiver with revised terms including extensions on existing milestones; execution expected later this week • Completed the convertible bond offering for $250M Overview Ironton Growth Finance 13
Slide 14: Revised Bondholders Agreement
Revised Bondholders Agreement Date for completion of each milestone pushed back by 3 months Dec 31, 2023 Feb 28, 2024 Mar 31, 2024 Apr 30, 2024 50% Run Rate 100% Run Rate Performance Test Formal Project Closure • 8.9M lbs produced over 30 consecutive 4.45M lbs produced over Completion date Completio
Slide 15: Q3 2023 Liquidity Update
Q3 2023 Liquidity Update PureCycle received $221M net financing proceeds during Q3 2023 (in millions) June 30, 2023 Sept. 30, 2023 change Summary of Liquidity Changes Total Unrestricted $28.9 $211.3 $182.4 Net Financing Proceeds Received: Restricted Cash ▪ $218.5M Convertible Notes Plant 1 Project F
Slide 16: PureCycle is Focused on Making Ironton a Success
PureCycle is Focused on Making Ironton a Success 16