Capsol Technologies Asa · OSL:CAPSL
Capsol Technologies Asa — Pareto Securities' 30th annual Energy Conference 2023
35 slides from Capsol Technologies Asa's conference presentation, Sep 21, 2023
Slide 1: Building a cost-leading carbon capture tech provider
Building a cost- leading carbon capture tech provider Pareto Securities’ 30th annual Energy Conference 21 September 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About this presentation THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS,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: Highlights
Highlights Climate change calls for large-scale CO2 emission reductions Offering safe and highly cost-competitive carbon capture technologies Accelerating demand, sales pipeline grew 30% in Q2 2023 Strong traction in cement, the world’s largest industrial emitter Targeting significant long-term valu
Slide 4: Capsol Technologies at a glance
Capsol Technologies at a glance Safe and highly cost-competitive carbon capture technologies Oslo (HQ) Berlin The US (from 2H-23) Reduced capture cost Capture vs amines1 efficiency ~40% 90-95% Hours in Target operation industries Cement ~6 000 Biomass Energy-from-waste Current customers Project lead
Slide 5: Illustrative revenue potential towards 2040
Illustrative revenue potential towards 2040 2023-2030 2031-2040 Capacity Based on Rystad Energy estimates ~1 000 mtpa sanctioned ~5 200 mtpa sanctioned X License fee EUR 7-12 per ton = EUR 7-12 bn EUR 29-50 bn Market size From Technology licensing only (1 000 mtpa x EUR 7-12/t) (4 200 mtpa x EUR 7-1
Slide 6: 30% growth in pipeline since Q1 – totalling 42 million tonnes of CO2
30% growth in pipeline since Q1 – totalling 42 million tonnes of CO2 to be captured Sales engineering Engineering Engineering Final investment In operation studies1 to build2 decision (FID)3 Projects 122 10 1 Million tonnes >37(+7) 4.2 (+3) 0.8 CapsolGo® fast-track2 Projects 4 Technology licensing a
Slide 7: Efficient capture process based on reusing energy
Efficient capture process based on reusing energy • The challenge: Separate CO2 from the exhaust of industrial plants so that it can be stored or utilised • Capsol Technologies has developed a process to do this safely at low cost • The process is based on potassium carbonate to bind the CO2 • This
Slide 8: Capsol Technologies: The mature competitor, highly competitive on cost vs amine based carbon capture
Capsol Technologies: The mature competitor, highly competitive on cost vs amine based carbon capture Amine based carbon capture technology Capsol Technologies HPC carbon capture technology • The most well know capture technology • Hot Potassium Carbonate (HPC) for «post-combustion» carbon capture, i
Slide 9: Providing the best carbon capture solution for the cement industry
Providing the best carbon capture solution for the cement industry
Slide 10: Cement is the largest industry opportunity for CCS
Cement is the largest industry opportunity for CCS • Cement accounts for ~8% of global CO2 emissions and CCS is the only viable alternative to reach net zero • EU produced 183 million tonnes cement in 2022, the US 95 million tonnes, India 370 million tonnes and China 2 100 million tonnes1 • Expected
Slide 11: EU Carbon Border Adjustment Mechanism (CBAM)
! M A • CBAM will enter into application in its transitional phase on 1 October B 2023 C • Once fully phased in the CBAM will work as follows: ‒ EU importers of cement will have to pay allowances equivalent to the EU ETS expressed in EUR per tonnes ‒ At the same time EU domestic producers will lose
Slide 12: Highly attractive value proposition for cement
Highly attractive value proposition for cement • CapsolEoP® can typically reduce energy use by a minimum of 50% compared to traditional capture technologies such as amines1 • CapsolEoP® can reduce levelised capture costs by more than 25% • Flexible and easy to integrate – minimal production downtime
Slide 13: CapsolEoP for cement – superior energy efficiency
CapsolEoP® for cement – superior energy efficiency Traditional CCS technologies (amines) CapsolEoP® Heat consumption is a weak function of CO2 Electricity consumption is a strong function of CO2 concentration concentration Energy use – electricity (GJ/t CO2) Specific reboiler duty (GJ/t CO2) 4,5 2 4
Slide 14: Capsol is currently working with cement projects totalling 10 million tonnes of CO2
Capsol is currently working with 9 cement projects totalling 10 million tonnes of CO2 United Kingdom Location undisclosed Northern Europe Southern Europe ~700 000 ~1 000 000 1 000 000+ ~1 500 000 tonnes of CO2 per year (full-scale tonnes of CO2 per year (full-scale tonnes of CO2 per year (full-scale
Slide 15: Summary
Summary
Slide 16: Highlights
Highlights Climate change calls for large-scale CO2 emission reductions Significant CCS ramp-up expected towards 2030; CCS licensing market estimated at up to EUR ~50 billion 2023-2040 Offering safe and highly cost-competitive carbon capture tech Patented process enables ~40% lower costs. Safe and e
Slide 17: Drammensveien 126, Oslo
Drammensveien 126 0277 Oslo Norway Our vision is to accelerate the worlds capsoltechnologies.com transition to a carbon negative future
Slide 18: Appendix
Appendix 18
Slide 19: Path to net zero requires a step change in carbon capture
Path to net zero requires a step change in carbon capture CO2 captured per year – Rystad Energy 1.6dg Scenario 9 000 7 849 6 604 8 000 Energy Industry Power Removal (BECCS & DAC) Million tons capture capacity installed 7 000 ~4 000 plants equivalent to 6 000 3 581 Stockholm Exergi 5 000 4 000 1 471
Slide 20: Energy efficiency enables lower operating costs
Energy efficiency enables lower operating costs Energy consumption1 (GJ/t) Opex distribution (actual project) Levelized carbon capture2 cost (EUR/t) -40% -72% 36-58 10% Maintenance 10% Labor 2,5 GJ thermal2 10% Solvent 25-31 70% Energy ~60/40% 0,7 GJ electrical only opex/capex split Traditional amin
Slide 21: First licensing revenue from pioneering project in 2024
First licensing revenue from pioneering project in 2024 Selected as the preferred solution for Europe’s first large-scale negative emissions plant First technology licensing agreement with Stockholm Exergi Awarded in July 2022 Proven technology Competition with all mature technologies HPC Safety of
Slide 22: Four strategic pillars supporting growth and long-term value creation
Four strategic pillars supporting growth and long-term value creation Strategic focus 2025 goals 2030 goals Technology Continue to develop and protect cost advantage to ensure long-term competitiveness 5-10% Technology licensing market share Product Commercialise new products and services to increas
Slide 23: Mature technology delivering commercial traction
Mature technology delivering commercial traction Technology 3 successful pilots Demonstration unit 2 demonstration Patent license Collaboration developed over 20 completed commercialised units in operation agreement with agreements years1 Stockholm Exergi In the EU and the US, Designed to One in Ger
Slide 24: Value proposition for biomass / BECCS
Cement Biomass Gas turbines Energy-from-Waste Value proposition for biomass / BECCS Offering the lowest opex through additional heat delivery, safe for residential areas CO2 capture plant independent from parent plant and can be Biomass plants can become CO2 negative run solely on electricity • Inci
Slide 25: Value proposition for Energy-from-Waste
Cement Biomass Gas turbines Energy-from-Waste Value proposition for Energy-from-Waste Fully electric and safe solution fit for residential areas with large integration potential Waste incineration is part of the circular economy and a source for negative emissions • Waste handling represents a major
Slide 26: Value proposition for open-cycle gas turbines
Cement Biomass Gas turbines Energy-from-Waste Value proposition for open-cycle gas turbines Ability to handle low CO2 concentration – potential for additional power generation Capturing CO2 while generating additional electricity • CapsolGT® carbon capture solution for open-cycle gas turbines – capt
Slide 27: Proven traction with BECCS in Europe and the US
Proven traction with BECCS in Europe and the US Awarded licensing agreement in Europe’s first large-scale negative emissions plant Stockholm Exergi, Sweden Biomass plant, Sweden United States Germany 800 000 ~170 000 ~100 000 ~200 000 tonnes of CO2 per year tonnes of CO2 per year tonnes of CO2 per y
Slide 28: Waste-to-Energy segment is accelerating
Waste-to-Energy segment is accelerating New projects, solid execution and key partners KVA Linth, Switzerland Öresundskraft AB, Sweden Central Europe Westenergy, Finland ~100 000 ~200 000 ~200 000 ~200 000 tonnes of CO2 per year (full-scale tonnes of CO2 per year (full-scale tonnes of CO2 per year (
Slide 29: Value chain overview
Value chain overview Carbon capture EPC1 Operations and Liquefaction & Transport Storage technology maintenance intermediate storage • Technology • Client selects • Client selects • Client selects • Clients selects • Client selects licensed out independent independent independent independent indepen
Slide 30: Capital light, low risk and high margin licensing model
Capital light, low risk and high margin licensing model Capsol is offering a highly scalable licensing model Currently three income streams ‒ Paid engineering/process design ‒ Revenues from demonstration units ‒ Licensing fees No project construction risk Mean and lean organisation – marketing power
Slide 31: Patent portfolio overview
Patent portfolio overview Patent family 1: Patent family 2: Patent family 3: Patent family 4: Patent family 5: Low emission Combined storage Method and plant for Thermal power plant Purification of flue thermal powerplant solution for natural transport of rich gas with CO2 gas from marine gas and CO
Slide 32: Management
Management 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 Petroleum Engineering Petroleum and Energy (Carbon
Slide 33: Board of directors
Board of directors Endre Ording Sund Einar Chr. Lange Wayne G. Thomson Chair Board member Board member • >40 yrs experience with mgmt. and • Largest investor in CO2 Capsol • Extensive international career as a top board positions in the energy, banking • Mgmt. experience from shipping and executive
Slide 34: Risks and mitigating actions
Risks and mitigating actions 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 opportunistic approach to
Slide 35: Accelerating the world's transition to a carbon-negative future
Our purpose Accelerating the world’s transition to a carbon-negative future
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