Slide 1: Decarbonizing for a Circular Economy
Decarbonizing for a Circular Economy CorporatePresentation– August 2022 Andrew White, CEO Contact Us andrew.white@CHARtechnologies.com Mark Korol, CFO m.Korol@CHARtechnologies.com
Slide 2: Forward Looking Statements
2 Forward Looking Statements Statements in this presentation, to the extent not based on historical events, constitute forward-looking statements. Forward-looking statements include, without limitation, statements evaluating market and general economic conditions, and statements regarding future-ori
Slide 3: CHAR Technologies: Decarbonizing for a Circular Economy
3 CHAR Technologies Decarbonizing for a Circular Economy • Unique, proprietary High Temperature pyrolysis Technology • Transforms low value waste materials into high value usable renewable energy and biocarbon end products 3
Slide 4: High Temperature Pyrolysis (HTP) Technology
4 High Temperature Pyrolysis (HTP) Technology Low-value waste products Carbon negative, closed loop, self-sustaining system that heats Blend of high value carbon negative otherwise destined for waste materials in absence of oxygen. Materials do not burn renewable energy and biocarbon landfills or in
Slide 5: Investment Highlights
5 Investment Highlights Tremendous Market Patented Technology that Deep Connections to Opportunity Outperforms Alternatives Industry Substantial Reliable Business Model with Right Team to Project Pipeline Strong Project Economics Commercialize and Scale
Slide 6: Substantial Demand for 2nd Generation RNG Technology
6 Substantial Demand for 2 Generation RNG Technology nd Carbon Reduction Targets Canadian Natural Gas Market drive demand for decarbonizing natural gas <1% of 2020 Canadian Natural Gas Demand met by current RNG production market 5% Canada Natural Gas Utilities Target of RNG blended into natural gas
Slide 7: Substantial Opportunity for High-Value End Products: Renewable Natural Gas
7 Substantial Opportunity for High-Value End Products Outlook for Renewable Natural Gas Renewable Natural Gas - 300 – 800% growth in demand for biogas and Carbon negative, pipeline quality gas that is fully biomethane between 2018 and 2040 interchangeable with conventional natural gas and can be use
Slide 8: Substantial Opportunity for High-Value End Products: Green Hydrogen
8 Substantial Opportunity for High-Value End Products Green Hydrogen Green Hydrogen Outlook Hydrogen as % of Total Energy Consumption Carbon negative hydrogen made either by electrolysis of water, Bloomberg New Energy Finance Green Scenario July 2021 or the pyrolysis (or gasification) of organic was
Slide 9: Substantial Opportunity for High-Value End Products: Biocarbon
9 Substantial Opportunity for High-Value End Products Biocarbon Biocoal Outlook The remaining solids after the HTP Large Coal Market Focused on Significant Incentive for Coal Market process are converted into a solid carbon Decarbonizing Operations to Decarbonize product. Total Canadian Coal Market
Slide 10: Substantial Opportunity for High-Value End Products: Fertilizer Additive
10 Substantial Opportunity for High-Value End Products Fertilizer Additive • Voluntary Soil Amendment market • Large corporates, like Microsoft and Shopify, are in the market to decarbonize their operations Carbon Dioxide Removal Certificates (“CORCs”) can be sold that confirm 1 tonne of CO2 has bee
Slide 11: Diversified and Robust Feedstock Market
11 Diversified and Robust Feedstock Market 2nd generation technology allows for Uses feedstock otherwise destined for Patented HTP eliminates harmful diverse feedstock options landfills or incineration chemicals (PFAS) allowing for land Wood Waste Disposal 2018 application of processed biosolids Bio
Slide 12: Benefits of Patented HTP Technology
12 Benefits of Patented HTP Technology Transforms low-value waste products, including contaminated biosolids, into high-value & low carbon, renewable energy and biocarbon end products Cost competitive RNG | Hydrogen ready | CORCs Reduces waste liability of traditional RNG processes Leverages diverse
Slide 13: Deep Connections to Industry Partners
13 Deep Connections to Industry Partners Consulting Services provide Strategic Connection to Industry Environment Consulting Large, loyal industrial customer base Strong relationships with industry customers looking to manage their ESG profiles Enhances business development and R&D efforts for CHAR’
Slide 14: Substantial Project Pipeline Supports Future Growth
14 Substantial Project Pipeline Supports Future Growth Announced Projects Green Hydrogen & Biocarbon Project with Hitachi Zosen Inova (HZI) Kirkland Lake Renewable Natural Gas & Biocarbon Project Build, own, transfer model Build, own, operate model San Luis Obispo anaerobic digestion facility in HTP
Slide 15: Strong Project Economics & Reliable Business Model
15 Strong Project Economics & Reliable Business Model Business Model Economics Revenue Model Drivers of Project Economics System Sales 30-40% Margin • One-time fee • Premium pricing for renewable energy products Build, Own, Operate 3 Year Payback • Long-term offtake • Incremental revenues from Add o
Slide 16: Right Team to Scale & Commercialize Opportunity
16 Right Team to Scale & Commercialize Opportunity Andrew White Mark Korol Kenneth P.Goodboy Lewis Smith Chief Executive Officer Chief Financial Officer VP of Pyrolysis R&D Chief Commercial Officer MASc, MBET CFA, CPA, CFE, ABV Hon. BSc Andrew co-founded CHAR Technologies in Mark has over 20 years e
Slide 17: Focused on Advancing Key Priorities
17 Focused on Advancing Key Priorities Current Priorities Funding Focused on non-dilutive sources including government, project finance partners, strategic investors and non-dilutive pre-sales of Carbon Credits Commercialize HTP Pursue Strategic Alliances Advance Key Projects Advance Capital Sales
Slide 18: Appendix Slides
Appendix Slides technologies YES LISTED ON
Slide 19: CHAR / Hitachi Green Hydrogen Project
19 CHAR / Hitachi Green Hydrogen Project CHAR and Hitachi Zosen Inova reached an agreement to develop a high temperature pyrolysis to green hydrogen system at their existing San Luis Obispo anaerobic digestion facility in California. Under this agreement, CHAR’s HTP technology will process 18,000 to
Slide 20: Thorold Ontario RNG & Biocarbon Project
20 Thorold Ontario RNG & Biocarbon Project Build, own, operate model HTP to RNG & biocarbon facility Process woody biomass Produce 520,000 GJ/year RNG + 12,000 tonnes/year biocarbon In-service: Phase 1: 2023 Phase 2: 2024 Status: In progress Capital investment: Approximately $30 million Annual reven
Slide 21: Kirkland Lake, Ontario RNG & Biocarbon Project
21 Kirkland Lake, Ontario RNG & Biocarbon Project • CHAR BOO woody biomass to renewable natural gas (RNG) HTP project • Produce 500,000 GJ/yr (475,000 MMBTU/yr) and 10,000 tonnes/yr CleanFyre • July 2, 2021 - Land purchase option agreement with the town of Kirkland Lake with respect to the proposed
Slide 22: Saint-Félicien, Québec RNG & Biocarbon Project
22 Saint-Félicien, Québec RNG & Biocarbon Project • CHAR biomass to renewable natural gas (RNG) HTP project • Produce 250,000 GJ/yr and 5,000 tonnes/yr CleanFyre (Biocarbon) • CHAR systems will be deployed adjacent to existing biomass cogeneration facility • Carbon credit generation • Leverage the e
Slide 23: Board of Directors
23 Board of Directors William White, Chairman and Director A wealth of experience in global operations and leadership from a 34 year career with DuPont, including President of DuPont Canada. He has held previous director positions with Afexa Life Science and Helix BioPharma and chairs the advisory b
Slide 24: Board of Directors (CONT.)
24 Board of Directors (CONT.) Jane Pagel, Director Jane has held executive roles in both government and industry and has served on a number of public and private boards, including BluMetric Environmental Inc., Walker Industries, Kleinschmidt Associates and Sustainable Development Technology Canada.