Capital Power Corporation · TSX:CPX
Capital Power — Investor Day (December 2019)
94 slides from Capital Power's investor day presentation, Dec 5, 2019
Slide 1: Investor Day: Powered for Tomorrow
Investor Day Powered for Tomorrow December 5, 2019 1
Slide 2: Forward-looking Information
Forward-looking Information Cautionary Statement Certain information in today’s presentations and in responses to questions contains forward-looking information. Actual results could differ materially from conclusions, forecasts or projections in the forward-looking information, and certain material
Slide 3: Executive Leadership Team
Executive Leadership Team Brian Kate Bryan Jacquie Darcy Mark Vaasjo Chisholm DeNeve Pylypiuk Trufyn Zimmerman President and Chief SVP, Chief Legal and SVP, Finance and VP, Human Resources SVP, Operations, SVP, Corporate Executive Officer Sustainability Officer Chief Financial Officer Engineering an
Slide 4: Agenda
Agenda Time Topic Presenter 9:00 am Introduction Randy Mah Powered for Tomorrow Brian Vaasjo Maximizing Asset Value Darcy Trufyn Delivering Growth Mark Zimmerman Financing Growth Bryan DeNeve 10:20 am Break Powering a Sustainable Future Kate Chisholm 2020 Corporate Priorities Brian Vaasjo Q&A 11:15
Slide 5: Powered for Tomorrow
Powered for Tomorrow Brian Vaasjo President & CEO • Creating shareholder value from strategy • Delivering on our focus for past 6 years • Well-positioned to continue shareholder value creation 5
Slide 6: Delivering year-over-year
Delivering year-over-year Our Focus 5 years (2014-2018) AFFO per share Compounded annual growth of 14% ~3,500 MWs Doubled wind facilities to 8 with 854 MW from 12 Renewables / Wind facilities added since 2013 2,800 MW generation capacity Natural gas assets Added 5 facilities – 4 from acquisitions Co
Slide 7: Delivering year-over-year
Delivering year-over-year Our Focus 5 years (2014-2018) 6 years (2014-2019) Compounded annual growth of Compounded annual growth of AFFO per share 13% 14% ~3,500 MWs 9 facilities with 966 MW from 12 Doubled wind facilities to 8 with Renewables / Wind 854 MW facilities added since 2013 2,800 MW gener
Slide 8: How investors should think about Capital Power
How investors should think about Capital Power Growth-oriented Delivering short Anticipating theProgressive North American and long-term future – strategyleadership power producer value and tactics are evolving Credible, Competent, Creative & Competitive 8
Slide 9: Operational excellence
Operational excellence Then Completion of 6 projects on-time and on-budget Moving from 3rd quartile benchmarking Improving performance / reducing cost / reducing risk Genesee Performance Standard (GPS): 11% reduction in emissions Now Top quartile moving to best in North America GPS: 12%
Slide 10: Growth
Growth Then Contracted cash flow, dividends and credit rating Natural gas growth Renewables growth Now Reached our goals of 2/3 contracted, almost $5 billion invested Natural gas success Renewable facilities success Tomorrow Maintain 2/3 contracted Wind, solar, and storage Natural
Slide 11: ESG
ESG Environmental responsibility Leader in carbon mitigation Setting targets and executing strategy Social responsibility Safety – CEA safety recognition Diversity – Executive 33% women, Board 40% women Governance Board outreach 20% performance measures ESG related Integrated reporting
Slide 12: Executing strategy is creating shareholder value
Executing strategy is creating shareholder value CPX has delivered an average annual total shareholder return of ~19% since 2013(1) $225 CPX: $214 $200 Utilities Index: $185 $175 $150 TSX: $149 $125 $100 $75 $50 $25 $0 Dec 31 2013 Dec 31 2014 Dec 31 2015 Dec 31 2016 Dec 31 2017 Dec 31 2018 Nov 29 20
Slide 13: Maximizing Asset Value
Maximizing Asset Value Darcy Trufyn Senior Vice President - Operations, Engineering and Construction • Sustained excellence in Operations • Creating asset value • Continued development success 13
Slide 14: Sustained excellence in Operations
Sustained excellence in Operations Fleet performance Outstanding overall availability = 95.5% average since 2014 Renewables = 97%+ availability Benchmarking(1) results show thermal fleet availability rate in the top decile among peers Maintenance Proactive maintenance culture Disciplined a
Slide 15: Adding value to acquired assets
Adding value to acquired assets Long term ownership philosophy Optimize asset performance and costs Mitigate and reduce risks Phase 1: Integrate Common systems, standards and processes Establish operating parameters and requirements Centralized operations and technical support Establish
Slide 16: Optimize acquisition asset value
Optimize acquisition asset value Attain objectives Availability and start reliability at or better than business plan O&M spend at or below business plan Value added Decatur • Additional 100 MW by 2021 • Improved heat rate York Energy • Additional 14 MW Q4/2019 • Extend combustion turbine we
Slide 17: OPs2030
OPs2030 CP has a track record of successfully increasing asset value 5-year Reliability and Optimization Program (2013-17) • $50M per annum EBITDA improvement 5-year GPS program at a total cost of $45M • Forecast $38M per annum savings by 2022 OPs2030 will create the sustainable plant of the fut
Slide 18: OPs2030
OPs2030 Annual objectives incorporated into Long Term Plan Early focus: maximize value of existing processes, technology, and tools Later years: begin incorporating advanced technology Short Term (1-3 years) Long Term (4-10 years) Remote monitoring control rooms Condition-based monitoring
Slide 19: OPs2030 – Renewables
OPs2030 – Renewables Remote Operations and Control Center (ROCC) ROCC on track for end of 2019 completion; already yielding results ROCC Phase II expands alarm monitoring to improve response times, maximize revenues Data based decision making and OEM accountability In-house wind data expert,
Slide 20: Transformation of Genesee
Transformation of Genesee GPS - industry leading carbon reduction program • CO2 intensity reduced 12% by 2021 • Intensity levels of Subcritical G1&2 below that of Supercritical units • Includes Supercritical G3 turbine upgrade • Heat rate/CO2 improvements flow through to gas Conversion of all 3
Slide 21: Continued success in development: Whitla Wind Phase 1
Continued success in development Whitla Wind Phase 1 202 MW: 56 Vestas V136 – 3.6 MW turbines Located near Medicine Hat, Alberta 20-year PPA COD Dec 1 2019 Completed on-budget and early 21
Slide 22: Continued success in development: Cardinal Point Wind
Continued success in development Cardinal Point Wind 150 MW – 60 GE 2.5 MW turbines Located near Macomb, Illinois 12-year fixed price power contract, 15-year fixed price REC contract COD planned end of Q1 2020 Expected to be on budget Cardinal Point will be another successful project! 22
Slide 23: Highlights
Highlights Operations continues to achieve high availability from all assets New value is being created at acquired assets Significant, long-lasting incremental value will be created through OPs2030 Transformation of Genesee is well underway Successful track record for delivering wind proj
Slide 24: Delivering Growth
Delivering Growth Mark Zimmerman Senior Vice President - Corporate Development and Commercial Services • Advantaged portfolio • High performance people • Robust opportunity 24
Slide 25: Delivering growth
Delivering growth A sustainable approach to the future Advantaged portfolio High performance people Robust opportunity Disciplined strategy plus advantaged assets = steady growth in any environment 25
Slide 26: Adjusted EBITDA growth
Adjusted EBITDA(1) growth Proud of the past, confident in the future 2013 2019 2030 $1.5+ billion $895 million(2) $484 million Renewables Gas Coal 1).Adjusted EBITDA includes contributions of trading activity attributable to the plants’ production. Excludes mark to market changes 2) Midpoint of 2019
Slide 27: Young, contracted, reliable and diverse
Young, contracted, reliable and diverse Advantaged portfolio 25 Coal/Gas Gas Renewables More Desirable 20 Recontracting Remaining Contract Life (Years) 15 10 5 0 Less Desirable -5 0 5 10 15 20 25 30 35 40 45 Remaining Asset Life (Years) 1) Circle sizes based on relative ownership of facility capacit
Slide 28: Strategically positioned
Strategically positioned Enviable portfolio Alberta Ontario US South US Midwest Load Growth Retirements Renewables Penetration Opportunities to Contract 28
Slide 29: Well positioned in the Alberta market
Well positioned in the Alberta market Enviable portfolio $125 Average realized power prices(1) have exceeded spot power prices by 20% since the Company’s inception 10 years ago $100 $75 $/MWh $50 $25 $0 Q3/09 Q2/10 Q1/11 Q4/11 Q3/12 Q2/13 Q1/14 Q4/14 Q3/15 Q2/16 Q1/17 Q4/17 Q3/18 Q2/19 Q1/20 Q4/20 Q
Slide 30: Superior optimization and execution
Superior optimization and execution High performance people Origination Presence • Environmental commodities Alberta Franchise throughout North America • Strong historical trading performance • Power and gas hedging in Alberta • Dual fuel and conversion optionality • Contracting wind developments •
Slide 31: Disciplined deployment of capital: recent gas acquisitions
Disciplined deployment of capital Recent gas acquisitions Contract Market AFFO 2018 Current Facility Expiry Fundamentals Accretion(1) Assessment Assessment East Windsor 2029 Bullish York 2032 Bullish $0.25/shr BC Waste Heat 2029 N/A Decatur 2022 Bullish $0.18/shr Arlington Valley 2025 Bullish $0.22/
Slide 32: Disciplined deployment of capital: greenfield developments
Disciplined deployment of capital Greenfield developments Contract Current Facility Schedule Budget Capex Expiry Assessment Halkirk 2032 Early Under $323M Quality Wind 2037 On Time Under $413M Port Dover Nanticoke 2033 On Time Under $288M Beaufort 2031 On Time Under $38M Bloom 2027 Early Under $314M
Slide 33: Good recontracting potential at Decatur
Good recontracting potential at Decatur High performance people ~$60M USD total turbine upgrade (2019-21) ~100 MW of additional capacity Fuel efficiency improvements 33
Slide 34: Whitla Wind 2
Whitla Wind 2 Robust opportunity ~97 MW expansion project Construction in 2021, $165M budget Synergies with Phase 1 34
Slide 35: Cumulative capacity additions
Cumulative capacity additions(1,2,3) Generating capacity outlook (GW) 600 EIA 2019 outlook Additions 500 Cumulative capacity additions for the U.S. 400 +257 GW 300 Renewables 200 100 +285 GW Natural Gas - (100) Retirements (200) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2
Slide 36: Gas is here for the long term
Gas is here for the long term Highlighting the opportunity “The U.S. electricity system continues to 1 Coal and nuclear retirements replace aging coal and nuclear with cheaper renewables and gas, which become the 2 Proliferation of renewables country’s premier source of power generation” Bloomberg N
Slide 37: Positioned for the future
Positioned for the future Robust opportunity Near-Term or In-Construction In development Greenfield Acquire & Develop Terrace Thermal Genesee Expansion CBEC Expansion M&A Activity Klo Wind Halkirk 2 $10-$30 billion annual opportunity(1) Frederickson 2 Whitla 2 KWCG Madoc Solar Nolin Hills Tisch Mill
Slide 38: 2020 Growth targets
2020 Growth targets $500 million committed capital for growth Expect one renewable development project Potential for strategically aligned acquisitions 38
Slide 39: Responsible energy for tomorrow
Responsible energy for tomorrow A sustainable approach to the future Renewables Greater Average Geographical AFFO per share growth certainty contract life diversification CAGR 100% >67% >10 <40% ~9% Gas, renewables, Contracted Years Alberta CAGR and new tech Aspirations for 2030 39
Slide 40: Financing Growth
Financing Growth Bryan DeNeve Senior Vice President, Finance and Chief Financial Officer • AFFO growth supports dividend growth • Ability to fund $500M growth per year without accessing equity markets • Maintain investment grade credit rating 40
Slide 41: Overview of financial strategy
Overview of financial strategy Annual dividend growth within long term AFFO payout ratio target of Deliver annual 45% to 55% dividend growth Provide dividend stability through contracted cash flow profile Maintain Maintain competitive cost of capital investment Ensure access to capital marke
Slide 42: Re-contracting of near term PPAs
Re-contracting of near term PPAs PPA expiry & Re-contracting Facility PPA Expiries counterparty credit Outlook rating Island Generation Re-contracting Decatur discussions underway Island 2022 (A-rated Provides critical back-up Arlington Valley Generation (BC) Entity) and reliability services to Ki
Slide 43: Prudent capital allocation
Prudent capital allocation Balanced focus between Dividend Growth dividend growth and growth growth opportunities opportunities Existing asset Dividend growth provides improvements certainty in returns for investors Development projects Share buybacks are considered Acquisitions during p
Slide 44: Capitalizing on attractive capital market opportunities
Capitalizing on attractive capital market opportunities $1.2 billion raised in capital Raised $1.2B in gross proceeds from recent financings in 2019 Common $150M common share issuance used to Shares finance the Goreway Power Station Private $150M Debt $150M in preferred shares $325M • Cumulati
Slide 45: EBITDA from new assets supports dividend growth
EBITDA from new assets supports dividend growth(1-5) ($M) $700 Cardinal Point Whitla $600 Goreway Arlington Valley 2019 toll $500 Arlington Valley New Frontier Decatur Energy Centre $400 EnPower East Windsor Cogeneration Center York Energy Centre $300 Bloom Beaufort $200 Macho Springs Kingsbridge 2
Slide 46: AFFO for 2020
AFFO for 2020 ($M) AFFO from Goreway and development projects offsets Arlington toll decrease 12% year-over-year AFFO growth after normalizing for 2019 Arlington toll (1) 2020 AFFO represents midpoint of $500 - $550M guidance range 46
Slide 47: 2019 AFFO guidance
2019 AFFO guidance Revised guidance reflects AFFO ($M) acquisition of Goreway Power 600 $535 - $555 in June 2019 $485 - $535 $460 - $510 500 Current AFFO outlook exceeds revised guidance 400 300 200 100 0 Original guidance Revised guidance 2019E 47
Slide 48: AFFO continues to support dividend growth
AFFO(1) continues to support dividend growth Discretionary cash flow is forecast to be $315M in 2020 $600 $525 $510 $500 $397 $400 $361 ($M) $324 $292 $300 Discretionary cash flow $200 Gross common dividends(2) AFFO payout range $100 44% 37% 40% 41% 49% 44% $- (3) 2015 2016 2017 2018 2019T 2020T Lon
Slide 49: Growing AFFO per share
Growing AFFO(1,3) per share $6.00 $4.84 $4.98 $5.00 $3.85 $4.46 $4.00 $3.58 $3.20 $3.02 $3.00 $2.00 $1.00 $- 2015 2016 2017 2018 2019T 2020T AFFO/share normalized² AFFO/share Normalized AFFO per share growth of ~12% in 2020 1) Represents Adjusted FFO (2018 method), less the portion allocated to the
Slide 50: Dividend growth guidance to 2022
Dividend growth guidance to 2022 Annualized dividend $2.30 $2.19 per share(1,2) $2.05 5% $1.92 7% 7% $1.79 $1.67 $1.56 $1.46 $1.36 $1.26 2013 Y/E 2014 Y/E 2015 Y/E 2016 Y/E 2017 Y/E 2018 Y/E 2019 Y/E 2020T 2021T 2022T Delivering consistent annual dividend growth with 5% dividend guidance for 2022 1)
Slide 51: Discretionary cash flow supports dividend growth target
(1) Discretionary cash flow supports dividend growth target $500M $50M $38M(2) 7% 5% AFFO/share Dividend Capital EBITDA AFFO Growth Growth AFFO per share growth from discretionary cash flow covers 5% annual dividend growth without dilution to existing shareholders 1) Assumes a 10x EBITDA multiple an
Slide 52: Cash flow and financing outlook
Cash flow and financing outlook Sufficient funding for current growth projects 2020T Sources of cash flow ($M) Funds from operations(1) + off-coal compensation $670 TEI debt issuance $210 Bond issuances $200 $1,080 Uses of cash flow Dividends (common & preferred shares) ($260) Debt repayment(2) ($42
Slide 53: Portfolio optimization
Portfolio optimization AB commercial portfolio positions 2020 2021 2022 % sold forward(1) 63% 2% 10% Contracted prices(2) ($/MWh) Mid-$50 Mid-$60 Low-$50 Forward prices(3) ($/MWh) $56 $58 $54 EBITDA sensitivity to a $5/MWh $16 $64 $60 change in spot prices(4) ($M) Lower hedge positions in 2021-2022
Slide 54: Financial strength
Financial strength Strong balance sheet and commitment to investment grade credit ratings Agency Ratings Outlook S&P financial metrics S&P BBB- / P-3 Stable DBRS BBB(low) / Pfd-3 (low) Stable Adj. FFO/Debt(1-3) Adj. Debt/EBITDA(1-3) 20% 5.0 15% 4.0 3.0 10% Strong liquidity from cash flow 2.0 5% 1.
Slide 55: Debt maturity schedule
Debt maturity schedule(1) Well spread-out debt maturities supported by long asset lives ($M) $600 $500 USD 65 $400 Longer term debt reflects $160 increased confidence $300 $450 $200 $300 $275 $251 USD 230 $100 $210 $65 $50 $0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Slide 56: Dividend sustainability and growth
Dividend sustainability and growth Dividend yield 10.0% Previous 9.0% AB Gov’t announces Climate Leadership Plan 8.0% Off-coal compensation announced 7.0% Dividend yield has 6.0% returned to historic 6% 6% long-term average yield range with greater certainty and confidence 5.0% in the Alberta power
Slide 57: Sustaining capex guidance
Sustaining capex guidance ($M) Long-run maintenance capital averages $85-$95M per year 57
Slide 58: Modeling guidance for Cardinal Point
Modeling guidance for Cardinal Point 60 50 Main difference between EBITDA and cash flow is EBITDA driven by the accounting of 40 the production tax credits (PTCs) and tax depreciation ($M) credits allocated to the Tax 30 Equity Investor prior to the flip-date 20 Pre-tax cash flow Cash flows incr
Slide 59: Modeling of 2020 AFFO
Modeling of 2020 AFFO Seasonality impacted by timing of sustaining capex and receipt of off- coal compensation payment 50% Majority of scheduled outages occur in the first half of the year 40% Receipt of $50M off-coal compensation payment in Q3 30% Margins from Alberta assets is typically high
Slide 60: Highlights
Highlights Continued strong balance sheet to support investment grade credit rating Conservative payout ratio target of 45% to 55% Financial capacity in 2020 to fund $500M growth without accessing equity market Optimistic outlook for re-contracting on near term PPAs to support contracted EBI
Slide 61: Powering a Sustainable Future
Powering a Sustainable Future Kate Chisholm Senior Vice President, Chief Legal and Sustainability Officer • Supplier of Choice • Employer of Choice • Neighbor of Choice 61
Slide 62: Responsible Energy for Tomorrow
Responsible Energy for Tomorrow We create dependable, cost-effective and future-ready electricity solutions to power a sustainable future for generations to come. As a group of experts and innovators in our field, we develop, acquire, own, and operate power generation facilities in Canada and the Un
Slide 63: Real-life example: Alberta, February 2019
Real-life example: Alberta, February 2019 If you wanted to run Alberta on renewables alone (wind and battery storage) you’d need enough battery storage to deal with long bouts of zero wind generation. To serve all load by discharging battery only for a… full 24 hours to serve an average 10,000MW l
Slide 64: Flexible, dispatchable generation is needed to fill intermittency
Flexible, dispatchable generation is needed to fill intermittency of variable renewables CAISO Power Mix and Price Profile 35imports thermal solar wind hydro geothermal Nuclear power (15) $- price 30 $120 25 $100 Power prices ($/MWh) Power mix (GW) SP15 Day-Ahead 20 $80 15 $60 10 $40 5 $20 - $0 1 2
Slide 65: Gas continues to play a critical role
Gas continues to play a critical role PHYSICAL Power dense... renewables cannot solve power needs in places like Japan, Taiwan, Bangladesh... with lot of people and little space FINANCIAL Abundant, economic, and importable... gas supply trends in our favor + lowest capex SUSTAINABLE Balances t
Slide 66: Advancing carbon capture, utilization and storage
Advancing carbon capture, utilization and storage (CCUS) CCUS is a key component of the decarbonization pathway and can support the development of a sustainable energy system through: Enabling zero or near-zero emissions from natural gas generation Reducing emissions from industrial processes th
Slide 67: Capital Power's sustainability strategy: Supplier of Choice
Capital Power’s sustainability strategy… “Supplier of Choice” 1. Continue to build out renewables 2. Work toward decarbonization of natural gas generation Educate & advocate for carbon capture & conversion (“CC”) technology (ongoing) Use Partnerships to scale/market test new CCUS technologies (e
Slide 68: Capital Power's sustainability strategy: Employer of Choice
Capital Power’s sustainability strategy… “Employer of Choice” 2019 Top Employer for Young People and Top 75 in Alberta CEA president’s Award for Excellence in Employee Safety (6th consecutive year) Top Quartile employee engagement Implementing diversity & inclusion strategy 68
Slide 69: Capital Power's sustainability strategy: Neighbour of Choice
Capital Power’s sustainability strategy… “Neighbour of Choice” Industry leading stakeholder consultation process / results Community investment – in past 5 years, have invested $5.1M in the communities in which we operate Community engagement – annual engagement plans for each plant, meeting n
Slide 70: Sustainability targets
Sustainability targets Constructing all new natural gas generation units to be carbon capture and/or hydrogen-ready Reducing CO2 emissions at Genesee by 50% by 2030 from 2005 levels Reducing CO2 emissions by 10% and our emission intensity by 65%, in 2030 from 2005 levels(1), in spite of increa
Slide 71: The climate change disclosure journey
The climate change disclosure journey Objectives TCFD: Provide information for investors and enable stakeholders to understand risks and opportunities related to climate Step-by-step growth Integrate climate into business planning Further development of metrics and scenarios TCFD is a journey, t
Slide 72: Highlights
Highlights • World leading carbon reduction program (targeting 12% reduction in Genesee GHG emissions by 2020) • Investing in innovation – CCUS, windfarm financing, land remediation research, wind turbine detuning Environment • Industry leader in financial support for diverse offset creation • 44% w
Slide 73: 2020 Corporate Priorities
2020 Corporate Priorities Attractive Investment Brian Vaasjo President & CEO 73
Slide 74: 2020 Operational targets
2020 Operational targets Facility availability Sustaining capex 100% $90M - $100M $100 $80M - $90M 95% 95% 95% 93% $75 $50 90% $25 85% $0 2019 Revised 2019 2020 Target 2019 Revised 2020 Target Target Estimate Target 1) 2019 revised targets reflects the acquisition of Goreway Power on June 4, 2019. 7
Slide 75: 2020 Financial targets
2020 Financial targets Key assumptions Based on 63% of the Alberta Commercial baseload generation sold forward at an average contracted price in the mid-$50/MWh range Excludes any impacts from $500M of committed capital for growth Adjusted EBITDA Adjusted funds from operations $485M - $535M $535
Slide 76: Growth from development and construction projects
Growth from development and construction projects $500 million committed capital for growth Complete Cardinal Point wind project on time and on budget for commercial operations in March 2020 Advance Whitla Wind 2 project Expect one renewable development project 76
Slide 77: How investors should think about Capital Power
How investors should think about Capital Power Attractive investment opportunity Proven track record and guidance for sustainable dividend growth • 2020 and 2021 guidance remains at 7% • 2022 at 5% Delivering on or exceeding 2019 targets Strong 2020 outlook, AFFO up 12% (normalized) Growth t
Slide 78: Capital Power & C2CNT
Capital Power & C2CNT Brian Vaasjo President & CEO 78
Slide 79: Investment in C2CNT
Investment in C2CNT C2CNT owns all intellectual property associated with Dr. Licht’s work in nanocarbon technology Capital Power currently committed to own 9% of C2CNT • Intend to exercise options to move to 40% interest by end of 2020(1) • Benefits from 40% interest in production at Shepard and
Slide 80: Investment in C2CNT production
Investment in C2CNT production Plan to start commercial scale production of CNTs at Genesee Carbon Conversion Centre(1) 7,500 tonne per annum production facility Proceed with permitting early 2020 Phase 1 construction CNT output: 2,500 tonnes per annum Expected construction start: summer 202
Slide 81: Presented by Dr. Stuart Licht
Presented by Dr. Stuart Licht Founder, C2CNT
Slide 82: C2CNT
C2CNT Our Mission: Transform anthropogenic carbon dioxide into valuable carbon nanomaterials to incentivize reduction of this greenhouse gas and pioneer a nanocarbon economy to save the planet from the impacts of climate change. Technology in Action C2CNT’s revolutionary technology transforms CO
Slide 83: Carbon Nanotubes: 40x stronger than steel and lighter than aluminum
Carbon Nanotubes: 40x stronger than steel and lighter than aluminum 83
Slide 84: C2CNT: process & product overview
C2CNT: process & product overview 1. CO2 is captured from the atmosphere and industrial processes 2. CO2 is split by molten carbonate electrolysis into high value carbon nanotubes and O2 3. Specialized carbon nanotubes are used for various industrial materials applications 84
Slide 85: Our progress
Our progress 1 of 5 finalists in NRG COSIA Carbon XPRIZE (natural-gas track) $10M competition for turning CO2 emissions into valuable products Winner: converts the most CO₂ into products with the highest value determined by 1. How much CO₂ per day is converted (2 to 5 tonnes) 2. The net value
Slide 86: How does the CO2 to carbon nanotube process work?
How does the CO2 to carbon nanotube process work? 1 86
Slide 87: Commercialization
Commercialization Known applications as an additive to materials, textiles, batteries, electronics and other carbon materials Numerous applications for carbon nanotubes have been studied extensively but current market price of over $100,000 per tonne make utilization uneconomic. Reducing the c
Slide 88: Market potential for CNT in structural materials
Market potential for CNT in structural materials Structural Materials Strength Improvements & Composite CNT ratio Implied Tonnes of CO2 wt % Increase in Production Reduction avoided per CNT Property Property Cost (tonne) (CNT:Material) tonne of C2CNT tensile Concrete 0.048% strength 45% $100 1:938 8
Slide 89: Initial target market: concrete
Initial target market: concrete Properties extensively studied 89
Slide 90: Concrete commercialization
Concrete commercialization Lehigh Hanson Partnership Lehigh Hanson conducting all internal and external testing of concrete at their cost Testing starting soon Optimal nanotube for concrete determination taking place at George Washington University Marketing of CNT-enhanced concrete in Alber
Slide 91: Questions?
> Questions?
Slide 92: Non-GAAP financial measures
Non-GAAP financial measures The Company uses (i) earnings before net finance expense, income tax expense, depreciation and amortization, impairments, foreign exchange gains or losses, finance expense and depreciation expense from its joint venture interests, gains or losses on disposals and unrealiz
Slide 93: Forward-looking information
Forward-looking information Forward-looking information or statements included in this presentation are Whether actual results, performance or achievements will conform to the Company’s provided to inform the Company’s shareholders and potential investors about expectations and predictions is subjec
Slide 94: Keep the conversation going. Follow us at:
Keep the conversation going. Follow us at: @capitalpower @capital-power @capitalpowercommunity capitalpower.com