Capsol Technologies Asa · OSL:CAPSL
Capsol Technologies Asa — Investor Presentation (February 2024)
37 slides from Capsol Technologies Asa's investor presentation, Feb 14, 2024
Slide 1: Investor presentation
Investor presentation 14 February 2024
Slide 2: Important information (1 of 3)
Important information (1 of 3) THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS,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 STATES AND THE DISTRICT OF COLUMBIA) OR ANY OTH
Slide 3: Important information (2 of 3)
Important information (2 of 3) This Presentation speaks as of the date hereof. All information in this Presentation is subject to updating, revision, verification, correction, completion, amendment and may change materially and without notice. None of the Company, the Managers or any of their respec
Slide 4: Important information (3 of 3)
Important information (3 of 3) Risk factors An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by s
Slide 5: Today's presenters
Wendy Lam Chief Executive Officer (Incoming) Today’s presenters Ingar Bergh Chief Financial Officer
Slide 6: Investment highlights
Investment highlights Carbon capture essential for achieving UN emission goals – early phase of booming market Cost competitive carbon capture and heat recovery system in one. Superior HSE Accelerating commercial traction in key segments – emerging as competitive solution for cement Highly scalable
Slide 7: 2023 was by far the warmest year ever recorded
2023 was by far the warmest year ever recorded – probably warmest in +100,000 years Global surface level temperatures | Daily temperatures in °C, 1940 - 2023 17 2023 EACH MONTH FROM JUNE TO DECEMBER WAS 16 WARMER THAN THE CORRESPONDING MONTH ANY PREVIOUS YEAR 15 2020s 2010s 14 2000s 1990s 13 1980s 1
Slide 8: CCS crucial for climate; early phase of booming market
CCS crucial for climate; early phase of booming market CO2 captured per year – Rystad Energy 1.6dg Scenario 9 000 7 849 6 604 8 000 Mt CO2 capture capacity installed Energy Industry Power Removal (BECCS & DAC) 7 000 1 billion tonne 6 000 x6.5 3 581 by 2030 5 000 4 000 x6.5 To reach targets, about 1
Slide 9: CCS incentives making projects profitable
CCS1 incentives making projects profitable Regulatory drivers are making carbon capture increasingly attractive for industrial emitters • World’s largest emissions-trading system Inflection point reached in target markets Illustrative • CBAM2 adds CO2 costs to cement imports, adding ~60% to prices •
Slide 10: Capsol Technologies at a glance
Capsol Technologies at a glance Listed on Euronext Growth in Oslo Planned uplisting Q2 2024 Superior efficiency and safety Carbon capture and heat recovery system in one unit Oslo (HQ) Lower capture cost vs amines1 Capture efficiency Germany ~40% 90-95% US-Office (TBA) Years of R&D Hours in operatio
Slide 11: A portfolio of technologies to meet large emitters' needs
A portfolio of technologies to meet large emitters’ needs CapsolGo® demonstration units CapsolEoP ® (end-of-pipe) CapsolGT® for gas turbines 700 tonnes CO2/year 100 000+ tonnes CO2/year 12 000 to 400 000+ tonnes CO2/year All-inclusive mobile demonstration unit Full capture system for large-scale CO2
Slide 12: 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 13: Technology platform based on reusing energy
Technology platform based on reusing energy • Upgraded a proven capture solution for efficient post-combustion • Integrated waste heat and energy recovery with minimal modification of mother plant resulting in significantly lower energy consumption • Safe, non-proprietary HPC solvent – eases permitt
Slide 14: CapsolEoP less energy intensive than amine capture
CapsolEoP® less energy intensive than amine capture Case study for cement plant1 CapsolEoP® Traditional CCS technologies (amines) Electricity use from compressor decreases with CO2 Heat consumption/energy does not change much at higher concentration CO2 concentrations Typical flue gas CO2 Typical fl
Slide 15: Introducing CapsolGT for open cycle gas turbines
Introducing CapsolGT® for open cycle gas turbines Ability to handle low CO2 concentration – potential for additional power generation CapsolGT® Input • Hot flue gas CapsolGT® Output • Pure CO2 • Low carbon electricity Enables highly efficient capture by “super charging” the built-in heat recovery sy
Slide 16: Awarded Pre-FEED study by gas turbine supplier
Awarded Pre-FEED study by gas turbine supplier In line with Capsol’s target of a full-scale first-of-a-kind plant in 2026 Announcement from 12 February 2024 • Global provider of gas turbines awarded pre-FEED (Front-End Engineering Design) study to develop a customised CapsolGT® plant for several of
Slide 17: Capital light, low risk and high margin licensing model
Capital light, low risk and high margin licensing model Capsol is offering a highly scalable First part of licensing fee normally paid when licensing model final investment decision (FID) is made ‒ Minimum 1/3 of license fee to be paid at FID ‒ Generally, 12-24 months from feasibility Currently, thr
Slide 18: Revenue streams
Revenue streams Current revenue stream Revenue Outlook Margins Addressable market 7-12 EUR per tonne of installed CO2 12 billion EUR by 2030, 50 billion by 2040 100% margin, very scalable – main value Licensing capture capacity 5%-10% market share target generator (one-time, index adjusted) (12 EUR/
Slide 19: Rapidly growing sales pipeline in 2023
Rapidly growing sales pipeline in 2023 License agreements CapsolGo Engineering studies 12 2023 Focus on moving projects from sales engineering 10 into more mature development 8 2024 MILLION TONNES 8 800 000 tonnes CO2 (+ ~650% vs. 2022) Focus on signing license agreements 6 4 Total pipeline + sales
Slide 20: Pipeline of ~13 million tonnes CO2 across target industries
Pipeline of ~13 million tonnes CO2 across target industries Cement Biomass Energy-from-waste Gas turbines 7 projects1 5 projects 8 projects Engineering studies (6 800 000) (1 700 000) (1 260 000) Commercialisation of the CapsolGo® 2 projects 4 projects CapsolGT® technology - campaigns (650 000) (1 1
Slide 21: Fixed costs covered by CapsolGo and engineering studies
Fixed costs covered by CapsolGo® and engineering studies: Significant upside from license agreements Activity required to break-even in 20241 Cement project: EUR ~10m pre-tax profit2 (Illustrative) (Illustrative) 100 90 ~400 cement Engineering studies projects required 80 the next 10 years Pre-tax p
Slide 22: Stockholm Exergi project
Stockholm Exergi project Largest project in Scandinavia - Project awarded EUR 180 million by EU First technology licensing agreement with Stockholm Exergi Licence agreement signed July 2022 Safety of HPC compared to amines Competition with all mature technologies Recover process heat for district he
Slide 23: Second license agreement signed in Q4 2023
Second license agreement signed in Q4 2023 News • Signed frame license agreement 27 Dec 2023 with large European utility with several waste-to-energy (WtE) and biomass plants (BECCS) • First projects to have total capture capacity of ~550 000 tonnes of CO2 per year; further potential for multiple pl
Slide 24: Munters AB and Capsol enter collaboration agreement
Munters AB and Capsol enter collaboration agreement • Agreement with Munters AB to jointly develop mass transfer related equipment optimised for CapsolEoP® and CapsolGT® • New technologies to be tested and implemented within CapsolGo® campaigns and selected engineering projects • The agreement is an
Slide 25: Partnering for global scaling
Partnering for global scaling Partnerships aimed at reducing carbon capture cost and capturing market shares • Develop and deliver • Collaboration to • Preferred equipment • Preferred engineering • Large-scale CO2 value standardised carbon explore the CapsolGT® supplier for services partner to chain
Slide 26: Entry to North America, the largest market for CCS
Entry to North America, the largest market for CCS • US-registered entity established in Q4 2023 • Ongoing projects in sales engineering, strong interest for CapsolGo® • Building core team and executive advisors • US presence increases Capsol’s serviceable market ‒ 130 million tonnes in planned CO2
Slide 27: On track to build a global carbon capture tech leader
On track to build a global carbon capture tech leader 2023: Accelerating demand and traction ✓ Secured 15 engineering studies and six CapsolGo® demonstration campaigns (by end Q3 2023). Signed new frame license agreement in Q4 2023 ✓ Entered collaboration with globally leading companies Siemens Ener
Slide 28: Q&A
Q&A
Slide 29: Risk Factors page 1 of 5
Risk Factors page 1 of 5 An investment in the Company (together with its subsidiary, the "Group") and its shares (the "Shares") involves inherent risks. Before making an investment decision in respect of the Shares, potential investors should carefully consider the risk factors and all information c
Slide 30: Risk Factors page 2 of 5
Risk Factors page 2 of 5 Risk related to the protection of proprietary technology (IPR) The Group's success depends in part upon its ability to protect its intellectual property. To accomplish this, the Group relies on a combination of registered intellectual property rights and trade secrets. Effec
Slide 31: Risk Factors page 3 of 5
Risk Factors page 3 of 5 There are numerous risks associated with engineering and construction of carbon capture facilities, including but not limited to risks of delay and failure to deliver according to the agreed specifications (including the performance levels guaranteed), risks of early termina
Slide 32: Risk Factors page 4 of 5
Risk Factors page 4 of 5 The Group is exposed to liquidity and insolvency risk The Company is currently in a growth phase and has i.a. operated with a deficit the last three years. Liquidity risk encompasses the risk that the Company may not be able to meet its financial obligations as they fall due
Slide 33: Risk Factors page 5 of 5
Risk Factors page 5 of 5 Exercise of share options and future issuances of Shares or other securities could dilute the holdings of other shareholders The Company has implemented a share option program for senior management and employees, as well as a share option program for board members. On 30 Jun
Slide 34: Appendix
Appendix
Slide 35: Management
Management Wendy Lam, incoming Chief Executive Officer Cato Christiansen, Chief Technology Officer An extensive career as an executive at Baker Hughes, Rolls- Former Shell, SPT Group and the Norwegian Ministry of Royce Marine (now Kongsberg Maritime) and GE. MBA from Petroleum and Energy (Carbon Cap
Slide 36: Board
Board Endre Ording Sund, Chair Wayne G. Thomson, board member >40 years experience with management and board positions in the Extensive international career as a top executive within oil and energy, banking and shipping sector gas, Chairman of Svante Inc Royal Navy Academy, Norwegian School of Manag
Slide 37: Current ownership and dilutive instruments
Current ownership and dilutive instruments Top 20 shareholders as of 08.02.2024 Dilutive instruments Rank Investor Holding Stake Type Investor Allocation Strike (NOK) Issue date 1 REDERIAKTIESELSKAPET SKRIM 9,522,665 17.79% Ordinary 2 SEOTO AS 5,172,677 9.66% Ordinary Board members Tranche 1 750 000
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