Slide 1: Q2 and first half 2024 results presentation
Q2 and first half 2024 results presentation August 27, 2024
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FO R PUBLICA TION NO R DISTRIB UTION, IN WHO LE OR IN P ART, DIRE CTLY OR INDIRECTL Y, IN OR INTO AUSTRALIA, CANADA O R THE UNITED S TATES (INCLUDING ITS TERRITORIE S A ND POSSE SSIONS, ANY STATE O F THE UNITED STATED A ND THE DISTRICT O F COLUMBIA ) O R ANY OTHE
Slide 3: Today's presenters
Today’s presenters: Ingar Bergh Wendy Lam Cato Christiansen Chief Financial Officer Chief Executive Officer Chief Technology Officer
Slide 4: Capsol Technologies at a glance
Capsol Technologies at a glance Superior efficiency and safety Carbon capture and heat recovery system in one Norway (HQ) Lower capture cost vs amines1 Electricity consumption Germany ~40% 0.5-1.5 US GJ per ton of CO2 captured Years of R&D Hours in operation 15+ ~13,000 12 patent families, ~€50m inv
Slide 5: Highlights
Highlights Increased demand and target • Q2 revenues of NOK 17 million, up 3x compared to Q2 2023 price range • Project pipeline up >2x to 13 million tons CO 2, driven by biomass and cement • Target price range for licensing agreements increased to EUR 10-15 per tons installed CO2 capture capacity H
Slide 6: Patented technology with competitive advantage
CapsolGo® demo units Patented technology with competitive advantage Inherent heat recovery Improved energy efficiency reduces opex CapsolEoP® end-of-pipe and generation Image: Stockholm Exergi by Urban Design Little to no water need; Stand-alone Simpler integration reduces capture unit capex and pro
Slide 7: Partnering with CCS industry pioneers for global scaling
Partnering with CCS industry pioneers for global scaling Partnerships aimed at reducing carbon capture cost and capturing market share Joint R&D efforts to Develop and deliver Collaboration to Preferred equipment Large-scale CO2 Preferred engineering engineer and test standardised carbon explore the
Slide 8: Operational review
Q2 2024 Operational review
Slide 9: Mature project pipeline of 13m tons CO2 annual capacity
Mature project pipeline of 13m tons CO2 annual capacity 14 +120% Engineering studies 12 19 projects 10.0 mt 10 CapsolGo® Million tons CO2 6 projects 8 1.75 mt 6 License agreements 3 projects 4 1.35 mt 2 Additional wins post quarter not included 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Engineering s
Slide 10: Commercial traction in two first waves of demand
Commercial traction in two first waves of demand Biomass/Energy-from-waste Cement Gas turbines Clean power and new business Meeting new regulations and stay Decarbonize hard-to-abate gas power Market drivers opportunities in carbon removal competitive • Lower energy consumption with higher • Low ene
Slide 11: Voluntary carbon markets paving way for Stockholm Exergi and carbon removal projects
Voluntary carbon markets paving way for Stockholm Exergi and carbon removal projects Carbon dioxide removal (CDR) purchase volume Million tons 3.3 4.5 2.0 0.6 Second deal signed in Q2 (not represented in graph) 2022 2023 H1 2024 Source: CDR.fyi 11
Slide 12: CapsolGo demonstration at Swedish biomass plant and order for first two campaigns
CapsolGo® demonstration at Swedish biomass plant and order for first two campaigns at cement plants in Europe Biomass: Växjö Energi’s Sandvik plant in Sweden 1 Cement: Brocēni in Latvia and Akmenės in Lithuania2 260,000 1.5m tons CO2 in full- tons CO2 in total scale potential full-scale potential Q2
Slide 13: US office and international advisory board established
US office and international advisory board established • Robin Bodtmann appointed Managing Director Americas, 30 years of experience in the energy industry with EPC projects and engineering services • Ongoing recruitment process to strengthen the presence in the world’s largest carbon capture market
Slide 14: North America and Europe leading large-scale CCS
North America and Europe leading large-scale CCS Target for emissions CCS incentives Required CCS reductions in 20301 projects by 2030 • Infrastructure Investment and Jobs Act from 2021 includes USD 50-52% 12bn for CCS projects over five years • IRA 2 increased tax credit for carbon sequestration to
Slide 15: Deep-dive: CapsolGT enabling affordable low-carbon gas power generation
Q2 2024 Deep-dive: CapsolGT® enabling affordable low-carbon gas power generation
Slide 16: The challenge
The challenge Highly efficient gas turbines play a key role in decarbonization efforts globally Gas power with carbon capture can be a vital transition technology to replace more heavy emitting fossil power production Carbon capture viewed as too costly due to low concentration of CO2 in the exhaust
Slide 17: 3-in-1: Carbon capture, heat recovery and power generation
3-in-1: Carbon capture, heat recovery and power generation CapsolGT® highlights: 95%+ capture rate for power plants with CapsolGT® Efficient technology suitable for any conditions Reduced overall plant complexity and capex Superior environmental impact Delivered together with leading turbine manufac
Slide 18: CapsolGT for gas turbines
rc CapsolGT® for gas turbines Enabling affordable low-carbon power generation
Slide 19: Efficiency gain
Carbon capture with additonal power production Gas turbine + CapsolGT® carbon capture plant Compressor/Expander Compression/Dehydration/Cooling Desorber Pumps Energy gain • No need for additional, costly steam cycle (capex) • Reduced plot space and plant complexity +10.4% Efficiency gain -0.9% -0.8%
Slide 20: Maturing potential CapsolGT projects
Maturing potential CapsolGT® projects • Initiated value engineering initiatives to further reduce costs • Ongoing discussions with gas turbine operators and greenfield developers • First FEED study expected before end 2024 with target start up in 2026/2027 • Expect higher value generation per ton in
Slide 21: Financials
Q2 2024 Financials
Slide 22: Improved financial position as a result of capital raise and revenue growth
Improved financial position as a result of capital raise and revenue growth • Successfully raised net proceeds of NOK 109 million in H1 2024 Q1 private placement Retail offering of NOK 30 • NOK 17 million in revenues in Q2 2024, up from NOK 5.2 deployed to growth million in June 4x million in the sa
Slide 23: Investing in commercialization and technology portfolio
Investing in commercialization and technology portfolio Cash flow for Q2 2024 (NOK million) 97,3 • Cashflow from operating activities impacted by 26,4 92,6 NOK 2.4 million added to pre-paid revenue and NOK 4.6 million in non-cash allocation for the 2,4 4,6 employee share option program 22,1 2,3 0,7
Slide 24: Capsol one of few listed pure-play carbon capture companies
Photo: Thomas Brun | NTB Capsol one of few listed pure-play carbon capture companies globally Q3 2023 October 2023 February 2024 March 2024 June 19, 2024 Board decision made to Conversion to a public Private placement to Conversion to IFRS First day of trading prepare listing transfer company (ASA)
Slide 25: Concluding remarks and Q&A
Q2 2024 Concluding remarks and Q&A
Slide 26: Milestones expected next 6-12 months
Milestones expected next 6-12 months De-risking the path towards long-term goals and revenue potential Bringing New Engineering Stockholm New Expanding CapsolGT® to CapsolGo® contract Exergi FID1 licensing partnerships market deployments awards agreements Generating high Growing project Entering nex
Slide 27: Summary
Summary CCS market estimated to grow 6x by 2030 and by 70x next two decades Offering a proven and highly competitive capture solution Mature pipeline up from ~6 to ~13 million tons of CO 2 p.a. last 12 months Expanding geographic presence in partnership with global players One of the only publicly l
Slide 28: Q&A
Q&A
Slide 29: Appendix
Appendix
Slide 30: Enabling a sustainable future
Vision To accelerate the world's transition to a net zero future Enabling a sustainable future Mission Deliver energy-efficient and safe carbon capture technologies 31
Slide 31: Building a leading global capture technology company
Building a leading global capture technology company CCS market accelerating – exponential growth ahead CO 2 captured per year to reach net-zero Capsol Technologies’ 2030 goals 8 000 Top 3 position in target segments: cement, biomass, 7 000 Energy Industry Power Removal (BECCS & DAC) 1 waste-to-ener
Slide 32: A portfolio of technologies to meet large emitters' needs
A portfolio of technologies to meet large emitters’ needs CapsolGo® CapsolEoP® CapsolGT® Clean power and new business Meeting new regulations and stay Description Decarbonize hard-to-abate gas power opportunities in carbon removal competitive Lower cost carbon capture for gas Accelerate investment d
Slide 33: Illustration of the CapsolEoP process
Illustration of the CapsolEoP® process A full capture solution for CO2-emitting industries Cement, biomass, energy-from-waste (EfW), power generation and large industrials Capture capacity from 100 000+ tons CO 2/year CO 2 capture rate of 90-95%+ Stand-alone end-of-pipe (EoP) solution, easy retrofit
Slide 34: Management
Management Wendy Lam, Chief Executive Officer Cato Christiansen, Chief Technology Officer An extensive career as an executive at Baker Hughes, Rolls- >20 years’ experience from the energy sector. Former Shell, SPT Group Royce Marine (now Kongsberg Maritime) and GE. MBA from and the Norwegian Ministr
Slide 35: Board
Board Endre Ording Sund, Chair John Arne Ulvan, board member >40 years with management and board positions in the energy, Extensive career as a top executive with strong results from banking and shipping sector. national, international and listed companies. M.Sc. In Chemistry/Chemical Engineering fr
Slide 36: Ambition
2030 goals for long-term value capture Ambition 1 Make point source carbon capture accessible and viable for more emitters Top 3 position in target segments: cement, biomass, waste-to-energy and 2 gas power plants Becoming a leading global carbon capture technology company 3 Achieve 5-10% carbon cap
Slide 37: Scalable, high-margin and low-risk licensing model
Scalable, high-margin and low-risk licensing model Low fixed cost ~100% margin Zero capex risk 40-60% pre-tax …on licensing Marketing power and additional Technology license includes process …profit margin targeted long-term ~50% margin on CapsolGo® engineering capacity through design package and ca
Slide 38: Illustrative revenue and profit potential towards 2030
Illustrative revenue and profit potential towards 2030 CCS capacity ~1,000 mtpa sanctioned Based on Rystad Energy’s path to net zero scenario 2023-2030 X License fee EUR 10-15/t (real-term) installed capacity Capsol’s new target validated by recent license agreements = Market size EUR 10-15 bn Techn
Slide 39: 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 40: Delivering performance beyond CCS industry standards
Delivering performance beyond CCS industry standards Ability to capture a Highly competitive Top-tier Purity that meets range of flue gases energy efficiency capture rate industry requirements CO2 concentration Energy use Capture rate CO2 purity 3-30% 0.7-1.5 GJ/mt1 90-95% +99% Proven technology wit
Slide 41: 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 42: Path to net zero represents major CCS opportunity
Path to net zero represents major CCS opportunity The target What it takes The opportunity To avoid irreversible climate ~8 billion tonnes of CO2 capture per Potential for EUR ~62 billion in CO2 change, CO 2 emissions need to be annum by 2050 capture technology licensing reduced to net zero by 2050
Slide 43: Capsol Technologies vs amine-based carbon capture
Capsol Technologies: The mature competitor, highly competitive on cost vs amine-based carbon capture Amine-based Chemicals: Utilises amine solutions - proprietary blends are main Chemicals: Utilizes an aqueous solution of potassium carbonate that intellectual property and differentiator. reacts with
Slide 44: US leading the way for CCS
US leading the way for CCS Infrastructure in place, economies of scale and fast permitting Access to transport and storage US carbon capture pipelines and projects There are currently more than 9 000 km CO 2 pipelines globally and By 2050 in Net Zero America study1 the US accounts for >8 000 km (mor
Slide 45: Increased licencing price target
Increased licencing price target Large European utility Project capture capacity (tons) 800,000 550,000 120,000 • Signed: Q3 2022 • Signed: Q4 2023 • Signed: Q1 2024 Key milestones • Expected FID: Q4 2024 • Expected FID: 2026 • Expected FID: 2026/2027 At a discount to the target range as a Within th
Slide 46: CapsolGo: Helping emitters accelerate CCS projects
CapsolGo®: Helping emitters accelerate CCS projects • Meeting the industry’s demand for testing our technology • Consists of two fully equipped 20ft containers. Ready-to- catch unit containing absorber and desorber columns, flue gas compression, instrumentation, control terminal, piping, insulation
Slide 47: 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 48: 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 49: 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 Commercialize new products and services to increas
Slide 50: Drammensveien 126, 0277 Oslo, Norway
Drammensveien 126 0277 Oslo Norway Our vision is to accelerate the worlds capsoltechnologies.com transition to a carbon negative future