Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q2 2022 Earnings Presentation
33 slides from Hydrogenpro Asa's earnings presentation, Aug 23, 2022
Slide 1: Q2 2022 presentation
Q2 2022 presentation Richard Espeseth, Interim CEO Martin Thanem Holtet, CFO 23rd of August 2022
Slide 2: Disclaimer
Disclaimer The following applies to this document, the oral presentation of the information in this document, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). By receiving and/or attending a meeting where this presentation is made and in acces
Slide 3: Agenda
Agenda I. Introduction: Q2 highlights II. Business update III. Technology leadership IV. Summary
Slide 4: I. Introduction: Q2 highlights
I. Introduction: Q2 highlights
Slide 5: Transformational development since IPO in October 2020
Transformational development since IPO in October 2020 IPO (October 2020) Q2 2022 Technology owner Value chain position Distributor & OEM1 Manufacturing capacity (p.a.) 0 MW 300 MW Backlog NOK 15 mill NOK 794 mill Active sales pipeline 1.5 GW 15.4 GW # of employees 10 70 Application submitted for up
Slide 6: HydrogenPro to deliver to the world's largest green hydrogen energy hub: 220 MW electrolysis plant
HydrogenPro to deliver to the world’s largest green hydrogen energy hub: 220 MW electrolysis plant • HydrogenPro has also signed a 10-year service and support agreement • The Advanced Clean Energy Storage Hub Power will use renewable energy sources Hydropower Electrolysers convert water into green h
Slide 7: BREAKING NEWS: The Inflation Reduction Act is a major trigger for green hydrogen in the U.S.
BREAKING NEWS: The Inflation Reduction Act is a major trigger for green hydrogen in the U.S. On 12th of August 2022 the US Congress passed the Inflation Reduction Act (IRA) $3/kg H2 in tax credits for producers of green hydrogen Wind/solar/hydro power is a pre-requisite to maximize tax credit High P
Slide 8: HydrogenPro increase its presence in the U.S.
HydrogenPro increase its presence in the U.S. Securing local presence Mitsubishi Power: Selected supplier for the world’s largest green hydrogen energy hub ▪ HydrogenPro will deliver 40 electrolysers with a capacity of 5.5 MW per electrolyser (220 MW in total) ▪ Completion of fabrication of the 220
Slide 9: Global manufacturing capacity target
Global manufacturing capacity target Electrolysis capacity p.a. to exceed 1 GW by 2023 Additional capacity in the US, Europe and RoW (MW) >5,000 Additional capacity in the US and Europe 1 300 0 300 At IPO Q2 2022 2023 2025-27 HydrogenPro’s IP ownership enables a rapid global scale-up 9
Slide 10: II. Business update
ll. Business update ‘Aydrogen pro
Slide 11: Business update Q2 2022
Business update Q2 2022 Q2 2022 financials – positive operating cash flow with well-capitalized balance sheet >USD50 mill. PO with Mitsubishi; one of the largest electrolyser PO’s ever + 10-year service agreement USD 3 mill. PO with Mitsubishi – large electrolyser to Takasago Hydrogen Plant Fabricat
Slide 12: Q2 2022 financials
Q2 2022 financials (NOK mill) Revenues Adj. EBITDA1 Net investments Cash balance Change in cash balance Backlog 2 Note: HydrogenPro Tianjin CO Ltd (75% owned by HydrogenPro AS) included in consolidated financial figures 1) Excl. non-cash impact of incentive program 2) Change in NWC/Other: change in
Slide 13: Focused investment plan to scale up globally and generate industry-leading returns
Focused investment plan to scale up globally and generate industry-leading returns Overall investment plan Main capital uses in H2 2022: Partnership strategy to fast-track build-up of global presence and market awareness… • Fully operational fabrication facility (300 MW) in China (remaining net cape
Slide 14: Active sales pipeline as of end Q2 2022
Active sales pipeline as of end Q2 2022 15.4 109 GW projects 141 + on-going FEED studies average MW per project 14 1 Note: 4 DG Fuels, H2V projects and Mitsubishi in US are additional projects and are not included in the sales pipeline
Slide 15: III. Technology leadership
1 III. Technology leadership
Slide 16: Owner of core technology and IP rights
Owner of core technology and IP rights Technology Global Scalability Life Cycle Leader Footprint Partner Strategically positioned as Original Equipment Manufacturer Hydrogen Pro is a full-fledged life cycle partner, and we produce high-pressure alkaline electrolysers with our proprietary, next-gener
Slide 17: HydrogenPro's advanced electrode technology increases efficiency significantly
HydrogenPro’s advanced electrode technology increases efficiency significantly Advanced electrode technology +14% Lab tests proving 14 % increased efficiency (HHV) Higher efficiency = lower energy cost Initial electrolyser test results verified Note: Simulated modelling gives 93% electrolyser effici
Slide 18: Electricity is by far the largest cost - advanced electrodes is a game changer
Electricity is by far the largest cost - advanced electrodes is a game changer for production of green hydrogen Levelized cost of hydrogen (“LCOH”)1 ▪ HydrogenPro’s advanced electrode Investment cost technology reduces consumption of & other OPEX: electricity by 14 % ~10-30% ▪ The reduction in elect
Slide 19: HydrogenPro's high pressure alkaline technology has several advantages
HydrogenPro’s high pressure alkaline technology has several advantages PEM Alkaline Alkaline High Atmospheric High Alkaline high pressure pressure pressure pressure Plant efficiency Low Medium Medium High Suitable for renewable Yes No Yes Yes energy input Cooling need High Medium Medium Low Overhaul
Slide 20: Manufacturing facilities
China – Electrolyser factory Manufacturing facilities Electrolyser manufacturing Tianjin factory CHINA 300 MW capacity Electrode manufacturing Denmark - Electrode factory DENMARK Aarhus facility 20
Slide 21: Operations in Norway
Operations in Norway Herøya – Test center HQ and test center at Herøya, Porsgrunn Herøya test center & HQ • Currently preparing for test of the world’s largest single stack high-pressure alkaline electrolyser system • Initial test runs show efficiency with advanced electrode technology is in line wi
Slide 22: IV. Summary
IV. Summary
Slide 23: Executive summary
Executive summary Landmark purchase order > USD 50 mill / 40 electrolysers with Mitsubishi, plus a 10 years service and support agreement Backlog of NOK 794 mill & active sales pipeline of 15.4 GW Advanced electrode technology reduces energy costs by 14% - long-term verification of results ongoing P
Slide 24: Outlook 2022: Our most important exam yet
Outlook 2022: Our most important exam yet Second half of 2022 Validation of world’s ▪ Arrival of world’s ▪ Assembling, installation and ▪ Test results from validation largest high-pressure biggest commissioning of the electrolyser expected electrolyser at at Herøya test facility alkaline electrolyse
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: Strong public commitments for hydrogen in the energy transition
Strong public commitments for hydrogen in the energy transition – recently major announcements in EU and the US 2019 >2020 2022 ▪ Germany, Belgium and France ▪ Japan, South Korea and ▪ 13 new countries have published ▪ The European Commission announces hydrogen deployment Netherlands release nationa
Slide 28: More R&D projects are in the pipeline; several patents filed
Material development geared with national/international funding Overview of funded R&D projects Q1-Q2 ▪ H2UP; Eurostars (Innovation Fund Denmark and Research Council of Norway) ▪ ▪ Dual Flow; H2020 H2-LEAN; EU-REACT >6.5 ▪ 2 x industrial PhD’s projects (Innovation Fund Denmark) MEUR ▪ 2 x projects s
Slide 29: Technology advantages
Technology advantages Large-scale modular hydrogen solution HIGH PRESSURE ALKALINE TECHNOLOGY: ADVANTAGES FOR and core components in the electrolyser production train LARGE-SCALE PROJECTS ▪ Standardized technology for electrolyser production trains World’s largest ▪ No use of noble metals or polyflu
Slide 30: Hydrogen enables the renewable energy transition
Hydrogen enables the renewable energy transition Power-To- Renewables Gas Refinery/ Decarbonization Synthetic fuel H2 Water + Balancing the grid O2 Fertilizer/ H2O ammonia LARGE-SCALE HYDROGEN PLANTS Steel Production
Slide 31: Offshore wind Onshore wind Solar power
Offshore wind Onshore wind Solar power Hydropower Grid balancing Fertilizer Shipping NH3 H2O Electrolysis Fuel H2 Transport Production Power-to-gas (steel production, refineries etc.) 31
Slide 32: Hydrogen can contribute
Hydrogen can contribute Hydrogen’s role 20% of global carbon abatement to reach net zero Requiring emissions in 660 MT 2050 Of renewable and low-carbon hydrogen Equivalent to 22% of global final energy demand 32 Source: Hydrogen Council’s report “Hydrogen for Net Zero”
Slide 33: www.hydrogen-pro.com
‘4ydrogen pro www.hydrogen-pro.com