Hydrogenpro Asa · OSL:HYPRO
Hydrogenpro Asa — Q3 2022 Earnings Presentation
30 slides from Hydrogenpro Asa's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 presentation: Take-off for green hydrogen
Q3 2022 presentation: Take-off for green hydrogen Richard Espeseth, Interim CEO & Founder Martin Thanem Holtet, CFO 8th of November 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. Highlights II. Business update III. Technology update IV. Strategy V. Summary
Slide 4: I. Highlights
|. Highlights ‘4ydrogen pro
Slide 5: DG Fuels' project 10 times larger than any other confirmed green hydrogen project
Take-off for Sustainable Aviation Fuel: DG Fuels’ project 10 times larger than any other confirmed green hydrogen project HydrogenPro has a • HydrogenPro is chosen as the supplier for alkaline high- larger delivery scope for the DG Fuels project pressure electrolysers for DG Fuels’ plant in Louisian
Slide 6: DG Fuels project to be included in order backlog after FID
DG Fuels project to be included in order backlog after FID Final Investment Decision (FID) HydrogenPro’s sales pipeline HydrogenPro’s backlog EPC Aftersales Feasibility Pre-FEED FEED Targeting of projects Development of Paid work, exploring Engineering, Service, maintenance and and establishing conc
Slide 7: Status: Validation of the world's largest electrolyser
Status: Validation of the world’s largest electrolyser • Production, installation and commissioning at HQ and test center at Herøya, Porsgrunn Herøya expected to be completed on 9th of November 2022. • Power supply to the electrolyser is turned on and we are now producing gas. • So far everything is
Slide 8: Testing of 3rd Gen electrolyser technology
Testing of 3rd Gen electrolyser technology • HydrogenPro’s advanced electrode Electrode testing at Herøya test facility technology (3rd Gen) has been tested for the first 1000 hour run. • First results show significant efficiency improvements. • Details to be given in technology update. 8 8
Slide 9: New office in Boston, USA
New office in Boston, USA • Established new office in Prudential 800 Boylston street, Boston, MA Tower. • In line with strategy on global footprint. • Important milestone in our US expansion together with large US order of 40 electrolyser systems and DG Fuels projects. 9 9
Slide 10: II. Business update
Il. Business update ‘Aydrogen pro
Slide 11: Highlights
Highlights Signing of Offtake Agreements making up 90% of total capacity at DG Fuels’ production plant in Louisiana. Validation of the world’s largest electrolyser expected commissioned on 9th of November 2022. Q3 2022 financials – revenues up 87% vs. Q2 2022. Backlog of NOK 849 million and active s
Slide 12: Q3 2022 financials
Q3 2022 financials (NOK mill) Revenues1 Adj. EBITDA2 Net investments 20,0 20,2 6,2 Cash balance Change in cash balance Backlog4 443,4 435,3 849 342,8 794 End Q3 2021 End Q2 2022 End Q3 2022 3 Q2 2022 Q3 2022 1) Revenue recognition Mitsubishi Power contract starting in Q4 . 2) Excl. non-cash impact o
Slide 13: Tianjin manufacturing facility
Tianjin manufacturing facility Tianjin manufacturing facility • Factory has been upgraded and is now producing another 5.5 MW electrolyser to be shipped to Japan. • Manufacturing on-going with increased activity level. • In total NOK 17 million invested in the manufacturing facility in Q3 2022. 300
Slide 14: Revenue recognition and Q4 2022 capital spend
Revenue recognition and Q4 2022 capital spend • Revenue recognition of the >USD 50 mill. Main capital uses in Q4 2022: contract with Mitsubishi Power starts in Q4 2022. • From Q1 2023, HydrogenPro will recognize • NOK 20-30 million remaining of upgrades in Tianjin higher revenues as manufacturing pr
Slide 15: HydrogenPro grows
HydrogenPro grows IPO (October 2020) Q3 2022 Technology owner Value chain position Distributor & OEM1 Manufacturing capacity (p.a.) 0 MW 300 MW Backlog NOK 15 mill NOK 849m Active sales pipeline 1.5 GW 17 GW # of employees 10 1002 Uplisted to the Oslo Stock Listing venue Euronext Growth Exchange mai
Slide 16: III. Technology update
Ill. Technology update ‘Aydrogen pro
Slide 17: The history of alkaline electrolysers
The history of alkaline electrolysers 1st generation 2nd generation 3rd Gen Atmospheric pressure High-pressure alkaline HydrogenPro electrolysers developed systems developed in in the 1920s. China in the 1960s. high-pressure alkaline system based on next-generation electrode technology. 17
Slide 18: Main components in a hydrogen factory
Main components in a hydrogen factory HydrogenPro’s scope of supply Supplied by partners Current breaker Rectifier Gas separator Gas purifier 5.5 MW H2 5.5 MW Current transformer Electrolysers Buffer tank Nitrogen stripping Illustration of electrolyser system for green hydrogen production 18
Slide 19: 3rd Gen product technology and plant improvements
3rd Gen product technology and plant improvements HydrogenPro’s R&D focus areas Electrolyser Gas separator Gas purifier H2 gas at >15 bars DC Power supply CWS CWS AC Power supply AC Power supply 19
Slide 20: The HydrogenPro way to improve total efficiency
The HydrogenPro way to improve total efficiency Production element WHY EFFECTS The high pressure and flow will be customized for Proprietary technology customized to our New hydrogen gas our existing system. system enables increased efficiency, more purifying unit hydrogen produced per unit of input
Slide 21: Testing of 3rd Gen electrolyser technology
Testing of 3rd Gen electrolyser technology • HydrogenPro’s advanced electrode technology (3rd Gen) has been tested for the Small-scale test at technology center, Herøya first 1000 hour run. • First results show significant efficiency improvements. • First test run was completed with double current d
Slide 22: IV. Strategy
IV. Strategy ‘4ydrogen pro
Slide 23: HydrogenPro to become #1 large-scale provider of green hydrogen production plants
HydrogenPro to become #1 large-scale provider of green hydrogen production plants Technology Global Scalability Life Cycle Leader Footprint Partner • High-pressure • >1GW global production • Standardised and • Plant management alkaline electrolysers. capacity in 2023. modular design. and services. •
Slide 24: 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 25: Building a global footprint to become #1 provider
Building a global footprint to become #1 provider • Worldwide production/assembly facilities: • Reduce cost from shipping, tolls and fees. • Local presence to secure service and aftersales. • Secure national political support. • Develop local supply chains. • Partnering reduces upfront costs compare
Slide 26: Life cycle model increases recurring revenues
Life cycle model increases recurring revenues Life cycle services include: Increase in installed base of plant deliveries will accumulate recurring revenues • Rapid response support. • Service and overhaul. Recurring revenue • Production optimization. • Remote and digital services. • Predictive mode
Slide 27: Green hydrogen enables renewable energy
Green hydrogen enables renewable energy Sustainable Aviation fuel Renewables Refinery/ Decarbonization Hydro Power-To- Gas Balancing the grid Solar H2 Steel Production Fertilizer/ Wind Ammonia Water Shipping H2O
Slide 28: Sustainable Aviation Fuel (SAF) ready for takeoff
Sustainable Aviation Fuel (SAF) ready for takeoff
Slide 29: V. Summary
V. Summary
Slide 30: Executive summary
Executive summary Offtake agreements signed by DG Fuels make up the largest green hydrogen project globally. Estimated value is >USD 500 million. Backlog of NOK 849 mill & active sales pipeline of 17 GW. First test phase of advanced electrode technology completed – significant improvements. Validati