Aker Clean Hydrogen AS — Investor Presentation (March 2021)
47 slides from Aker Clean Hydrogen AS's investor presentation, March 2021
Slide 1: Company presentation
Company presentation March 2021
Slide 2: Important Information
Important Information This presentation (the “Presentation”) has been prepared by Aker Horizons AS (the "Company“, and with subsidiaries the “Group”) and Aker Clean Hydrogen AS (under name change from AH TRE AS), a wholly-owned subsidiary of the Company (“ACH”), except where context otherwise requir
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen Introduction 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 4: Aker Clean Hydrogen – a pure-play industrial clean hydrogen producer
Aker Clean Hydrogen – a pure-play industrial clean hydrogen producer Pipeline & Opportunities +15-20 GW 4.7 GW Projects & Pipeline & Prospects Opportunities, net capacity +4.7 GW Net installed Projects & capacity 5.0 5.0GW GW Prospects, 1.3 GW net capacity Current portfolio 2030 ambition Develop, bu
Slide 5: Two flagship projects to reduce ~1.0 MT CO2 emissions per year
Two flagship projects to reduce ~1.0 MT CO2 emissions per year Removal of one of Norway’s largest CO2 emitters Decarbonisation of Arctic shipping & off-grid power plants ~800,000 tons CO2 per year ~200,000 tons CO2 per year Electrification of Yara’s grey ammonia plant at Herøya New green ammonia fac
Slide 6: Hydrogen is expected to play a vital role to accelerate decarbonisation
Hydrogen is expected to play a vital role to accelerate decarbonisation Hydrogen could close ~50% of the gap in CO2 emissions Addressing key UN sustainable to achieve the 2-degree scenario… development goals …by replacing the use of fossil fuel through clean hydrogen and ammonia production, reducing
Slide 7: The industrialisation of clean hydrogen production is starting now
The industrialisation of clean hydrogen production is starting now PROJECTS ARE MOVING FROM PILOT TO INDUSTRIAL-SCALE REQUIRING A NEW SET OF PROJECT CAPABILITIES Avg. size of green hydrogen projects Key capability Pilot Industrial-scale (MW electricity)(1) 140 Core technology Electrolyser share of t
Slide 8: Integrated business model covering the full asset lifecycle
Integrated business model covering the full asset lifecycle Develop Build Own Operate Unique access to Shape global learning projects through Aker curve through Stable cash flows AI enabled safe, Horizons eco-system modularisation, for financial reliable, and remote and Aker industrial industrial so
Slide 9: Clear targets for 2030 – ambition to have meaningful environmental impact
Clear targets for 2030 – ambition to have meaningful environmental impact Leading clean Most cost- Significant impact Attractive hydrogen producer efficient hydrogen on global CO2 long-term globally value chains reductions cash flows 5.0 GW USD 1.5 per kg 9.4 million tons >80% of volume net producti
Slide 10: Creating a leading pure-play industrial clean hydrogen producer
Creating a leading pure-play industrial clean hydrogen producer 1 Clean hydrogen for industrial use poised for remarkable growth 2 Unique capabilities and proven execution model to become the most efficient hydrogen value chain integrator 3 1.3 GW portfolio of industrial hydrogen projects & prospect
Slide 11: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 12: Clean hydrogen for industrial use poised for remarkable growth
Clean hydrogen for industrial use poised for remarkable growth Global energy demand supplied with hydrogen Relevant markets for industrial-scale hydrogen (Million ton hydrogen per year) New clean capacity: ~3,200 GW(1) Power generation, buffering 539 Building heat and power Power generation, bufferi
Slide 13: Clean hydrogen is essential to decarbonise several industrial processes
Clean hydrogen is essential to decarbonise several industrial processes GLOBAL CO2 EMISSIONS PER SECTOR 2019(1) Hydrogen Ammonia Fertilizer Buildings 9% Transport Fertilizer Feedstock H2 [] 3 NH [] Products Other 6% 22% Hydrogen Steel Metal processing Metal Ore H2 Metal Water 38% 25% Hydrogen Methan
Slide 14: Driving the next revolution in renewable energy through LCOH reductions
Driving the next revolution in renewable energy through LCOH reductions Onshore wind(1) Solar PV(1) Offshore shallow-water wind(1) Industrial-scale hydrogen(1),(2) 1990s 2000s 2010s 2020s LCOE, USD/MWh Generation, ‘000 TWh LCOE, USD/MWh Generation, ‘000 TWh LCOE, USD/MWh Generation, ‘000 TWh LCOH, U
Slide 15: Clean hydrogen with clear path to cost competitiveness by 2030
Clean hydrogen with clear path to cost competitiveness by 2030 CLEAN HYDROGEN HAS A CLEAR PATH TOWARDS COMPETITIVENESS BY 2030 CARBON-EMITTING GREY HYDROGEN PRODUCTION NOT COMPETITIVE LONG-TERM Development of production costs of hydrogen (LCOH)(1) USD / kg hydrogen Cost of emitting carbon expected t
Slide 16: Growth trajectory supported by national strategies and investment plans
Growth trajectory supported by national strategies and investment plans DEDICATED INVESTMENT PLANS Europe 2030 target Accelerating number of countries implementing national clean hydrogen strategies, including the EU European Union(1) 40GW Hydrogen vision document 16 United Kingdom(2) 10GW National
Slide 17: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 18: Becoming the most efficient clean hydrogen value chain integrator globally
Becoming the most efficient clean hydrogen value chain integrator globally LCOH, industrial-scale clean hydrogen facilities (USD/kg) Roadmap towards USD 1.5 per kg LCOH LCOH, 2020 4.0 Top quartile LCOH for projects sanctioned in 2020 ▪ Reduced development and origination costs due to access to Aker’
Slide 19: In a privileged position to access clean hydrogen projects
In a privileged position to access clean hydrogen projects Complementary skill-set position Partnership opportunities arising Global presence & network effects Aker Clean Hydrogen as an from Aker’s broad industrial from establishing end-to-end green attractive industry partner network value chains P
Slide 20: Network effects from Aker Horizons green value chain eco-system
Network effects from Aker Horizons green value chain eco-system CLEAN ENERGY ENERGY TRANSMISSION ENERGY USE Slide 20
Slide 21: Reducing commercial risk and cost of capital with financial structuring
Reducing commercial risk and cost of capital with financial structuring 1 2 3 Starting point Financial structuring Own & Operate Industrial end-user Structuring of the project cash flows Long-term recurring with demand is a key workstream to limit commercial risk cash flows for green hydrogen/ from
Slide 22: Aker Clean Hydrogen built on the best of the Aker DNA
Aker Clean Hydrogen built on the best of the Aker DNA Industrialisation of green technologies Industrial software Modularisation of industrial facilities Industrial-scale structures & plants Gas processing & storage Mechanical & electrical engineering First LPG gas Aker builds Troll World’s first La
Slide 23: Uniquely positioned to drive down capex in the execution phase
Uniquely positioned to drive down capex in the execution phase KEY PILLARS OF AKER CLEAN HYDROGEN’S CAPABILITY SET PATH TO ~60% REDUCED CAPEX FOR PRODUCTION FACILITY Domain expertise Product catalogue Capex development for green hydrogen production facility (EURm/MW) ▪ Designed to manage high- ▪ Mod
Slide 24: Strong in-house hydrogen domain capabilities
Strong in-house hydrogen domain capabilities EXAMPLE: CORE GREEN HYDROGEN PLANT MAIN DISCIPLINES Core domain disciplines in the Aker Clean Hydrogen team Legends: Core Aker Clean Hydrogen capabilities Combined capabilities Core OEM capability Sub-supplier scope Civil and buildings Plant utilities Glo
Slide 25: Track record of developing modularised industrial production systems
Track record of developing modularised industrial production systems EXAMPLE: SUBSEA COMPRESSION SYSTEM EXAMPLE: JUST CATCH NEXT: MODULARISED HYDROGEN PLANTS TECHNOLOGY CENTRE ▪ In 2015, Aker Solutions delivered the world’s first MONGSTAD Continuous learning from every step of process to subsea comp
Slide 26: Modular design – re-use and speed with industrial software
Modular design – re-use and speed with industrial software Product Catalogue | The ACH Modular Hydrogen System Facility Configurator Hydrogen Production Hydrogen Compression Hydrogen Liquefaction Ammonia Synthesis Substation Builder Utilities Builder Foundations Builder Options LCOH EUR/kg Productio
Slide 27: Software to accelerate learning, reduce risk and time & improve profitability
Software to accelerate learning, reduce risk and time & improve profitability Develop Build Own & Operate Early phase selections with large Ensuring safe, efficient and execution Largest impact on cost and revenues impact on activities later according to plan over the lifecycle Renewable Electrolysi
Slide 28: Well proven alliance model for scalability and efficiency improvements
Well proven alliance model for scalability and efficiency improvements ALLIANCE MODEL ENABLES A UNIQUE INTEGRATED DELIVERY Leveraging collective experience and capabilities to create value Asset owner Architecture and system integrator role Field Centre Åsgard – Subsea Critical technology Non-critic
Slide 29: Highly experienced team with support by strong board of directors
Highly experienced team with support by strong board of directors DEDICATED TEAM TO SUPPORT CONTINUED GROWTH SUPPORTED BY STRONG BOARD OF DIRECTORS Karl Johnny Hersvik Kjell Inge Røkke Chairman Board member Knut Olaf Nyborg Armand Breuer Cathrine Bjaarstad CEO Chief Technology Officer Chief Project
Slide 30: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 31: 1.3 GW industrial clean hydrogen projects & prospects with strong partners
1.3 GW industrial clean hydrogen projects & prospects with strong partners PROJECTS Pipeline & Opportunities, Herøya Berlevåg net capacity +4.7 GW 450 MW(1) 100 MW(1) Northern Glomfjord Norway Projects & Large scale 20 MW(1) Prospects, 1.3 GW net capacity Rjukan Meråker 50-80 MW(1) 14 MW(1) Projects
Slide 32: Developing Europe's largest industrial-scale green ammonia facility
Selected project Developing Europe’s largest industrial-scale green ammonia facility Removal of one of Norway’s largest CO2 emitters Conversion of Yara’s Herøya facility to green ammonia ~450 MW(1) Green ammonia ▪ Aker Clean Hydrogen, Yara and Statkraft have entered into a letter of intent to co-dev
Slide 33: Decarbonisation of Arctic shipping and off-grid power plants Green Ammonia Berlevåg project
Selected project Decarbonisation of Arctic shipping and off-grid power plants Green Ammonia Berlevåg project ~100 MW(1) Facility will be located close to Varanger Kraft’s 1 windfarms – located in an area with one of best wind resources globally Green ammonia Aker Clean Hydrogen and Varanger Kraft 2
Slide 34: Developing a high quality clean hydrogen facility in Chile
Selected prospect Developing a high quality clean hydrogen facility in Chile Delivering green hydrogen to fertilizers & industry-users Developing a high quality project on a global scale Large industrial-scale Green hydrogen ▪ Aker Clean Hydrogen and Mainstream Renewable Power are collaborating on d
Slide 35: Enabling emission-free shipping in the Antarctica
Selected prospect Enabling emission-free shipping in the Antarctica Emission-free shipping in the Antarctica New green ammonia facility in Uruguay 100-200 MW(1) Green ammonia ▪ Aker Clean Hydrogen and Aker BioMarine have agreed to collaborate towards developing a green ammonia facility in Uruguay –
Slide 36: Total portfolio of 6.0 GW in net capacity in identified opportunities
Total portfolio of 6.0 GW in net capacity in identified opportunities with ongoing dialogue Opportunities Under Pipeline Prospects Projects construction & in operation 3.8 GW 0.9 GW 0.8 GW 0.5 GW net capacity net capacity net capacity net capacity • Active dialogue with • Initial phase agreement • A
Slide 37: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 38: Well-defined investment compass within target regions
Well-defined investment compass within target regions INVESTMENT COMPASS – KEY SELECTION CRITERIA TARGET REGIONS Nordics ▪ Several attractive projects and end-users Regulatory framework Low-cost feedstock ▪ Good mix of both green and blue hydrogen projects ▪ Legislative push ▪ Access to low-cost ▪ N
Slide 39: Three building blocks to reach 2030 growth ambition
Three building blocks to reach 2030 growth ambition Current projects and prospects Leading clean hydrogen producer globally (net capacity) Norwegian Accelerate learning with 1 0.3 GW development of portfolio of Norway lighthouse Norwegian projects 5.0 GW Net installed capacity 2030 ambition Decarbon
Slide 40: 2030 ambitions positioning Aker Clean Hydrogen for further growth
2030 ambitions positioning Aker Clean Hydrogen for further growth Addressable market(1) Addressable market (GW) CAGR 1,025 +23% +26% 125 0 40 2020 2025 2030 2040 +15-20 GW Pipeline & 30-40 GW(2) Opportunities, net capacity +4.7 GW Projects & Prospects, 1.3 GW 5.0 GW net capacity Net installed 0.6 GW
Slide 41: Clear targets for 2030 – ambition to have meaningful environmental impact
Clear targets for 2030 – ambition to have meaningful environmental impact Leading clean Most cost- Significant impact Attractive hydrogen producer efficient hydrogen on global CO2 long-term globally value chains reductions cash flows 5.0 GW USD 1.5 per kg 9.4 million tons >80% of volume net producti
Slide 42: Creating a leading pure-play industrial clean hydrogen producer
Creating a leading pure-play industrial clean hydrogen producer 1 Clean hydrogen for industrial use poised for remarkable growth 2 Unique capabilities and proven execution model to become the most efficient hydrogen value chain integrator 3 1.3 GW portfolio of industrial hydrogen projects & prospect
Slide 43: Table of Contents
TABLE OF CONTENTS 1 Introduction to Aker Clean Hydrogen 2 Industrial-scale hydrogen market 3 Business & execution model 4 Project portfolio 5 Growth strategy A Appendix
Slide 44: Decarbonisation of Norwegian shipping
Selected project Decarbonisation of Norwegian shipping Decarbonisation of Norwegian shipping New green ammonia facility in Northern Norway Large industrial-scale Green ammonia ▪ Aker Clean Hydrogen, Yara and Statkraft have signed a letter of intent to cooperate to develop a greenfield green ammonia
Slide 45: Enabling emission-free ferry and shipping transportation with Rjukan project
Selected project Enabling emission-free ferry and shipping transportation with Rjukan project Enable emission-free ferry and shipping transportation New green hydrogen facility at Rjukan 50-80 MW(1) Green hydrogen ▪ Aker Clean Hydrogen, Tinn municipality and Rjukan Næringsutvikling have agreed to de
Slide 46: Attractive near-term projects from co-operation agreement with Greenstat
Selected projects Attractive near-term projects from co-operation agreement with Greenstat(1) ▪ Greenstat and Aker Clean Hydrogen have entered into a co-operation agreement with the aim to develop, design, build, own and operate green Co-operation agreement hydrogen facilities and related initiative
Slide 47: Aker Clean Hydrogen
(@) AKER CLEAN HYDROGEN
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