Ceres Power Holdings Plc · LSE:CWR
Ceres Power — Investor Day (2021)
41 slides from Ceres Power's investor day presentation, 2021
Slide 1: Solid oxide electrolysis (SOEC) Teach-in
Slide 2: Solid oxide electrolysis (SOEC) Teach-in
Solid oxide electrolysis (SOEC) Teach-in Introduction — Phil Caldwell, Chief Executive Officer Technology overview - Mark Selby, Chief Technology Officer Ceres’ technology — Jon Harman, Director of E-fuels Programme Commercial strategy - Dipak Mistry, Director of Commercial Partnerships Intellectual
Slide 3: The Ceres team
S (he Cores he Ceres team © Ceres Power Ltd 2021 Phil Caldwell Chief Executive Officer Jon Harman Director of E-fuels Programmes Dipak Mistry Director of Commercial Partnerships FD pe je 5 Richard Preston Chief Financial Officer Mark Selby Chief Technology Officer Clarissa de Jager General Counsel a
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Slide 5: The time is right for growth to tackle climate change
The time is right for growth to tackle climate change Policy * More than 20 countries have now published dedicated hydrogen strategies * Ceres already has strong partnerships in some of the most progressive countries; Japan, Germany, South Korea and China Industry Climate action remains the single b
Slide 6: Clean energy technology to address climate change
_/ Clean energy technology to address climate change CEES GOS INF, A) Global demand for energy By sector to 20kW. Potential for 150- 500kW utility scale Q ?) am J 7) 7) Stationary Ceres 30kW today. Potential for 150kW+ for trucks and shipping a ?) er 0) W Transport SOFC n NEW APPLICATIONS Ince ee SO
Slide 7: £181m raise
£181m raise of 10% of share capital to more than double addressable market for Ceres Growth opportunities New markets Industry standard in SOFC Investment in core business * Maintain technology leadership * Accelerate innovation and development ° General working capital - Weichai Power (20%) and Bos
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Slide 9: Ceres technology and competences span applications for the energy transition
Ceres technology and competences span applications for the energy transition Ve \_ POWER Fuel cells Electrolysers a a, HYDROGEN y,
Slide 10: Electrolysis enables growth by building on mature fuel cell capability and technology
Electrolysis enables growth by building on mature fuel cell capability and technology HYDROGEN Same core cell and stack technology platform Same IP portfolio covering SOEC and SOFC Same manufacturing process and supply chain Same partnering model providing scale COMMERCIALISATION PHASE DEVELOPMENT P
Slide 11: Electrolysis is a cornerstone technology for decarbonising hard-to-abate sectors
( Electrolysis is a cornerstone Nitrogen eee technology for decarbonising the hard-to- abate sectors Catalytic conversion \_ Synthetic fuels _) Adapted fi ‘A Options range from low grade lapted from : “Ammonia: . - C zero-carbon fertiliser, fuel and waste industrial heat, tight energy store” ©The Ro
Slide 12: Solid oxide electrolysis is highly differentiated
-/ Solid oxide electrolysis is highly differentiated Potential: highest efficiency Challenger: dynamic response | Alkaline 4 Industrial/bulk production Up to 68% efficiency Most mature: largest scale, lowest cost today All values quoted as lower heating value, from water at 25°C Source: Green Hydrog
Slide 13: SOEC intrinsic thermodynamic advantage over low temperature electrolysis
SOEC intrinsic Stand Coupled with thermodynamic O alone _ industrial processes advantage over 9 low 00 t From temperature 8 SOEC water electrolysis © . Alkaline n Cost Reduction trolys O ] | | | Meet the 1. Climate Goal 50 45 40 35 kWh/kg International Renewable Energy Agency, 2020, Abu Dhabi 61% 67
Slide 14: Hard to Abate Sectors account for >400MT of green hydrogen demand by 2050
Clean hydrogen will play a growing role across the economy as the world transitions towards net-zero Hard to Abate Sectors account for >400MT of green hydrogen demand by 2050 14
Slide 15: Industrial waste heat by temperature range
100°C to 200°C 200°C to 500°C 500°C to 1000°C M. Papapetrou, G. Kosmadakis, A. Cipollina, U. La Commare, G. Micale, Industrial waste heat: Estimation of the technically available resource in the EU per industrial sector, temperature level and country, Applied Thermal Engineering 138(2018) 207-216 ©
Slide 16: SOEC is a cornerstone of the energy transition that expands markets for our partners
SOECisa Levelised cost of hydrogen (USD/kg) cornerstone of $2.00 the energy transition that . expands * Deployable in markets for our $1.50 partnership and enabled partners by existing licensees $1.00 *« Key technology for hard-to-abate sectors $0.50 ¢« Future e-fuels enabler © Ceres Power Ltd 2021
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Slide 18: Steelcell technology enables high efficiency energy conversion at low cost
_/ Steelcell technology enables high efficiency energy conversion at low cost ‘i Operating temp 500 to 600C Low-cost ceramics Ceria electrolyte Stainless steel substrate and interconnect © Ceres Power Ltd 2021
Slide 19: Steelcell technology is able to operate in either fuel cell or electrolysis mode
_/ Steelcell technology is able to operate in either fuel cell or electrolysis mode SOFC SOEC ~ Hydrogen or Green Natural Gas Hydrogen Y ] 7 Y | ] I oom AR HYDROGEN, OUT ouT = + Rich area for innovation + No technology breakthroughs needed to exploit commercially + Focus is on technology maturation
Slide 20: Low temperature SOEC unlocks process integration opportunities
7 Low temperature SOEC unlocks process integration opportunities Primary Low temperature solid-oxide Green clean energy electrolysis technology hydrogen sources AIR IN AIR OUT Carbon-free | | t electricity - a e Water a =| SSS Process Heat ' | ] | WATER IN HYDROGEN OUT Existing operational technolog
Slide 21: First 1MW-class SOEC system demonstrator due to be operational in 2022
_TS First IMW-class SOEC system demonstrator due to be operational in 2022 Specification Hydrogen production System efficiency >80%, LHV, AC 600kg / day © Ceres Power Ltd 2021
Slide 22: Deployment of first commercial SOEC plants expected from 2025
_/ Deployment of first commercial SOEC plants expected from 2025 | en Q4 2020 H2 2022 2024 SOEC technology Prototype system SOEC stack proven operational product release Q4 2021 2023 2025 ECM subsystem Pre-commercial system First commercial systems operational development Target hydrogen production
Slide 23: MW-scale demonstration in 2022 sets path to commercialise technology
MW-scale - Applying well-established and mature technology to SOEC electrolysis demonstration in 2022 sets « Unlocking green hydrogen opportunities for close path to integration with industrial and energy generation commercialise processes technology Ceres Power Ltd 2021 23
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Slide 25: Established and growing business in SOFC
_/ Established and growing business in SOFC FUEL IN POWER TO HOMES POWER TO BUSINESSES POWER TO MOBILITY @ BOSCH WEICHAL miuRA © Ceres Power Ltd 2021 25
Slide 26: Now addressing potentially even greater market for SOEC
_/ Now addressing potentially even greater market for SOEC FUEL IN ENERGY STORAGE POWER TO HOMES sOWER TO H, FOR E-CHEMICALS BUSINESSES H, FOR E-FUELS POWER TO MOBILITY ¢ f2 ( es H, FOR INDUSTRIAL @ HYDROGEN FEEDSTOCKS BOSCH WEICHAL mivuRA RENEWABLE H, GAS BLENDING ENERGY IN =< © Ceres Power Ltd 202
Slide 27: Rapidly growing market for electrolysis to meet 2050 targets
Rapidly growing market for electrolysis to meet 2050 targets Source: McKinsey and Hydrogen Council © Ceres Power Ltd 2021 18% of global 2050 energy demand from hydrogen By 2050 a potential US$2.5 trillion market for hydrogen gas and electrolysis equipment 98 70 2020 2030 /. \ Power 63 ( ) generation
Slide 28: Targeting future suppliers of green hydrogen
_/ Targeting future suppliers of green hydrogen Suppliers of green hydrogen Demand for green hydrogen Engaging with global majors in each Global demand projected to double every sector to demonstrate and commercialise decade to 2050 Demand our technology in the following sectors: Oil and gas Industr
Slide 29: An inflection in the hydrogen market is expected towards the end of the decade
J /, . . . Production cost of hydrogen An inflection in USD/kg the hydrogen 6 market is Inflection point driven by: expected 5 - Increasing renewable energy towards the - Centralised, integrated production - Rising cost of carbon end of the decade, when clean hydrogen projected to be commercially co
Slide 30: Ceres' differentiated technology is a strong fit for this market
Ceres’ differentiated technology is a strong fit for this market *Source: McKinsey/ Hydrogen Council © Ceres Power Ltd 2021 Generating hydrogen at high levels of efficiency, integrated with steam, heat and clean energy, that is scalable for large centralised production Deployment from 2025 at a diff
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Slide 32: Ceres' intellectual property is highly differentiated and applies to SOFC and SOEC
Ceres’ intellectual property (IP) is highly differentiated and applies to SOFC and SOEC © Ceres Power Ltd 2021 SOFC to soEc Ceres cells can be used in fuel cells, electrolysis cells, or reversible cells Ceres' patent filings for its chemistry and architecture support both its SOFC and SOEC activitie
Slide 33: Ceres' IP is strong, relevant and growing
+ 103 patent families across cell, stack and system + 37 cell and stack patent families with 36 applicable to SOEC 120 Patent families 100 | 80 60 40 -rretl idl fe) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 — Ch Ceres’ IP is strong, relevant and growing... © Ceres Power Ltd 2021 33
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Slide 35: Same asset-light, licensing business model
_/ Same asset-light, licensing business model C ad STACK ROYALTIES £/kW SOLD SYSTEM ROYALTIES £/kW UNIT SOLD CERES LICENSES CORE TECHNOLOGY TO PARTNER CELL & STACK IP MANUFACTURING LICENSE FEES LAsauis tas) CERES LICENSES SYSTEM TECHNOLOGY TO PARTNER SYSTEM IP LICENSE & ENGINEERING SERVICES FEES © C
Slide 36: Same partnership progression
_S same partnership progression 1. Joint product 2. Licence: system/ 3. Royalties from development manufacturing products sold Engineering services Fees for tech transfer Royalties per kW WEICHAI = WEICHAI BoscH (BOSCH MIURA HONDA MiUuRA © Ceres Power Ltd 2021
Slide 37: Scaling the ecosystem into higher power and e-fuels
_S sealing the ecosystem into higher power and e-fuels New applications drive demand for cell Manufacturing for SOFC and SOEC and stack production Moving into higher power systems and broadening Target global manufacturing partners to applications in each region (through direct and supply cells and
Slide 38: Building new licensing revenues from the same business model
_/ Building new licensing revenues from the same business model Partners + scalingup : : towards mass } ' market launch : HH Royalties | 2024: SOFC |! | mass market | ee | launch | C2 2020: SOFC : ©@BOSCH | HYDROGEN nnn EE Licence fees, engineering services and hardware sales ce POWER |_| Royalties
Slide 39: SOEC strategy consistent with Ceres' purpose to address climate change
SOEC strategy consistent with Ceres’ purpose to address climate change and to create significant shareholder value © Ceres Power Ltd 2021 Highly differentiated offering for hydrogen, with distinct advantages in efficiency, coupling with processes that are high emitters of carbon dioxide today Builds
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Slide 41: Investor Relations Team
INVESTOR RELATIONS TEAM: investors@cerespower.com f f 44 (0)1403 273463 _info@cerespower.com Ceres Power, Viking House Hor: ‘oundry Lane PX UK