Capsol Technologies Asa · OSL:CAPSL
Capsol Technologies Asa — CO2 Capsol — Q4 2022 Earnings Presentation
35 slides from Capsol Technologies Asa's earnings presentation, Feb 17, 2023
Slide 1: Q4 2022 presentation
Q4 2022 presentation 17 February 2023
Slide 2: About this presentation
About this presentation THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS,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 STATED AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURI
Slide 3: Building a leading global carbon capture tech provider
Building a leading global carbon capture tech provider Safe and energy-efficient carbon capture technologies developed and commercialised since 2003 Our technologies are licensed out, either directly to customers or through global distribution partners The core process is based on a potassium carbon
Slide 4: Experienced leadership team dedicated to create value
Experienced leadership team dedicated to create value Jan Kielland, Chief Executive Officer Cato Christiansen, Chief Technology Officer >40 years´ experience with management and board positions in Former Shell, SPT Group and the Norwegian Ministry of the energy sector internationally. MSc in Petrole
Slide 5: 50% annual growth in CO2 capture required by 2030
50% annual growth in CO2 capture required by 2030 CO2 capture capacity in IEA’s net zero emissions scenario Required 2030-2050 1 200 1 100 1 000 Million tonnes CO2 per year 900 800 CO2 capture capacity 700 growth required annually 2030-2050 600 500 400 13% 300 200 100 0 2022 2030 Source: Source: IEA
Slide 6: New incentives boost CCS demand in both the US and Europe
New incentives boost CCS demand in both «The next decade will see the greatest industrial transformation of our times» the US and Europe Ursula von der Leyen, President of the European Commission, Special Address at Davos 2023 • Call on carbon capture is increasing • CCS (carbon capture and storage)
Slide 7: Carbon capture technologies to support all industries
Carbon capture technologies to support all industries CapsolGo® Capsol EoPTM CapsolGT® demonstration units (End-of-Pipe) for gas turbines 700 tonnes CO2/year 100,000+ tonnes CO2/year 12,000 to 400,000+ tonnes CO2/year Mobile carbon capture demonstration unit A full capture system for large-scale CO2
Slide 8: Efficient capture process based on reusing energy
Efficient capture process based on reusing energy • Patented heat recuperation process minimising the main cost driver for carbon capture: Energy consumption • Superior health and safety performance • Extracts high-purity CO2 for utilisation or storage • Tested through successful projects and campai
Slide 9: Competitive solutions in an attractive business model
Competitive solutions in an attractive business model • ~40% lower capture cost vs comparable solutions1 due to patented energy Reduced energy consumption recuperation reducing energy consumption and capture cost • Potassium carbonate is a cheaper solvent compared to amines Low installation risk • P
Slide 10: Q4 2022 highlights
Q4 2022 highlights Successful CapsolGo® demonstration campaign for Öresundskraft in Sweden The project achieved a capture rate of >90%, proving that the technology is well-suited for Energy-from-Waste (EfW) Entering the German market with two CapsolGo® projects and opening of Berlin office during Q1
Slide 11: Operational review
Operational review
Slide 12: Sumitomo partnership extending market reach
Sumitomo partnership extending market reach • Cooperation with Sumitomo Foster Wheeler, part of the Japanese Sumitomo Heavy Industries Group with more than 24,000 employees, an important step towards our long-term goal of a 5% market share • Developing full-scale standardised solution aiming to redu
Slide 13: Stockholm Exergi – progressing well
Stockholm Exergi – progressing well • Patent license agreement for use of CO2 Capsol’s End-of- Pipe (EoP) technology at Stockholm Exergi’s biomass powered Combined Head and Power (CHP) plant at Värtaverket in Stockholm signed in July 2022 • Värtaverket will be Europe’s first large-scale negative emi
Slide 14: Successful demonstration for Öresundskraft in Sweden
Successful demonstration for Öresundskraft in Sweden • The CapsolGo® unit has successfully run for 5-months with stable capture rates >90%, proving that the technology is well-suited for Energy-from-Waste (EfW) • Strong interest from potential customers and other key stakeholders; 40+ visits and 10+
Slide 15: Entering Germany – largest CCS potential in the EU
Entering Germany – largest CCS potential in the EU • CO2 Capsol to open an office in Berlin during Q1, the first location outside Norway • 12-month contract for the delivery of two CapsolGo® campaigns at an Energy-from-Waste (EfW) and a biomass- fired Combined Heat and Power (CHP) plant, both for a
Slide 16: Expanding technology platform with CapsolGT for open-cycle gas turbines
Expanding technology platform with CapsolGT® for open-cycle gas turbines Capturing CO2 while generating additional electricity CapsolGT® is a carbon capture solution for open- cycle gas turbines, capturing 95%+ of the carbon dioxide while enabling additional electricity generation Gas as a mainstay
Slide 17: Pipeline: ~100 active leads totaling more than 25 million tonnes of CO2
Pipeline: ~100 active leads totaling more than 25 million tonnes of CO2 Sales engineering Paid engineering Engineering Final investment In operation studies1 to build2 decision (FID)3 PROJECTS 90 3 1 MILLION TONNES 25 1.2 0.8 CapsolGo® fast-track2 PROJECTS 3 Technology licensing agreement4 Service a
Slide 18: Financial review
Financial review
Slide 19: Continuing to build revenue, pipeline and partnerships
Continuing to build revenue, pipeline and partnerships Q4 2022 financial highlights • Revenues increased in Q4 2022 • The pipeline continued to grow, ~100 projects now in initial sales phase Revenue Pre-tax profit • 7 projects moved from sales phase, of which 2 have a NOK 6.9 million NOK -9.3 millio
Slide 20: Maturing pipeline drives growth
Maturing pipeline drives growth 8,0 Revenue (NOK million) Pre-tax profit (NOK million) 0,0 7,0 -2,0 • Revenue of NOK 6.9 million, up 78%, driven by first CapsolGo ® demonstration -4,0 6,0 campaign -6,0 5,0 • Pre-tax profit of NOK -9.3 million as higher -8,0 revenue was more than offset by 4,0 increa
Slide 21: Comfortable financial position
Comfortable Cash position and committed spend (NOK million) financial position Start of period Current burn rate Debt service Contracted revenue Confirmed investments Buffer 60 Careful ramp-up with flexible cost base • NOK 61 million in cash by end of 2022 50 • Committed spend and committed revenue
Slide 22: Concluding remarks
Concluding remarks
Slide 23: Roadmap for establishing a leading market position
Roadmap for establishing a leading market position Winning initial projects Establishing leading position Scaling revenue 2022 2023-2025 2026-2030 • 2 CapsolGo® demonstration units in • Additional CapsolGo® demonstration • Reach 5% market share operation units • Consider extending scope per project
Slide 24: Investment highlights
Investment highlights • Path to net zero calls for minimum EUR ~21 billion of carbon capture technology 50% annual CO2 capture capacity capex to be sanctioned next eight years growth required by 2030 • Key segments: cement, biomass, Energy-from-Waste, power generation and industrial plants A competi
Slide 25: Appendix
Appendix
Slide 26: Simplified carbon capture and storage value chain
Simplified carbon capture and storage value chain Current scope CO2 Carbon Liquefaction & emission/ Transport Storage capture intermediate plant storage 25% 25% 25% 25% Note. Generalisation based on company estimates 26
Slide 27: Building a leading global carbon capture tech provider
Building a leading global carbon capture tech provider Long-term targets Illustrative Order book Pre-tax profit 5% technology licensing market share Addressable Technology potential at 5% potential in order market 2030 – in licensing market share in book tonnes of CO2 opportunity the period at 50% m
Slide 28: Leading on energy consumption and capture cost
Leading on energy consumption and capture cost Lower energy consumption …~40% lower capture cost than 1 and… traditional amine technology Electricity Mostly heat Consumption consumption Net capture costs 2 reduced further if €36-58 No additional external heat ~2,5GJ residual heat can required be mon
Slide 29: First large-scale project won with Stockholm Exergi
First large-scale project won with Stockholm Exergi Europe’s first large-scale negative emissions plant • Stockholm Exergi provides power, district heating and cooling. Owned 50% by the City of Stockholm and 50% by long-term investors led by APG • The plant will make Stockholm the first carbon neutr
Slide 30: CapsolGo demonstration for Öresundskraft
CapsolGo® demonstration for Öresundskraft CapsolGo® demonstration campaign at Öresundskraft’s Energy-from-Waste plant in Helsingborg, Sweden • The independent test operator was Captimise • The demonstration project has received funding from the Swedish Energy Agency Valuable data on effectivity, fle
Slide 31: Continuously expanding patent portfolio
Continuously expanding patent portfolio Patent family 2: Patent family 4: Patent family 5: Patent family 1: Patent family 3: Combined storage Thermal power plant Purification of flue Low emission Method and plant for solution for natural with CO2 gas from marine thermal powerplant transport of rich
Slide 32: An active approach to identifying and mitigating risks
An active approach to identifying and mitigating risks Key risk factors Mitigating actions • Licensing model highly scalable with limited resources • Partnering with big global players to greatly extend reach, capacity and capabilities Small player • A clear strategic roadmap for organic growth and
Slide 33: New US tax regime is turning capture into profit
New US tax regime is turning capture into profit Full CCS Cost - Example US project [EUR tonnes of CO2 captured] Current tax regime 14 26 10 57 43 21 16 New tax regime 26 73 10 57 21 Capture cost Liquefaction/Compression Transportation & Storage Total Net benefit to client Q45 Tax Refund Current €14
Slide 34: Partnerships with industry-leading companies to scale internationally
Partnerships with industry-leading companies to scale internationally Role Engineering Standardised plants Standardised plants EPC (Engineering, procurement, and construction) About Developed by Eickemeyer & Sumotomo SHI FW is a global Finnish supplier of best-in- An engineering and project Associat
Slide 35: Madserud Allé 2, 0274 Oslo, Norway
Madserud Allé 2 0274 Oslo Norway Our vision is to accelerate the worlds co2capsol.com transition to a carbon negative future