Capsol Technologies Asa · OSL:CAPSL
Capsol Technologies Asa — CO2 Capsol — Investor Presentation (September 2022)
29 slides from Capsol Technologies Asa's investor presentation, Sep 15, 2022
Slide 1: Accelerating the transition to a carbon negative future
Accelerating the transition to a carbon negative future INVESTOR PRESENTATION 15 SEPTEMBER 2022 0
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About this presentation THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS,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: CO2 Capsol at a glance
CO2 Capsol at a glance Ready-to-scale carbon capture technology …gaining global commercial traction • CO2 Capsol has developed a cost-effective carbon capture technology which could be a major contributor in combatting climate change • CO2 Capsol licenses out its End-of-Pipe (EoP) technology, either
Slide 4: Investment highlights
Investment highlights 46% annual growth in CO2 capture capacity required by 20301 A competitive solution and an attractive business model Building a leading global carbon capture tech provider Investing to establish leading position early Experienced management team dedicated to create value 1) Annu
Slide 5: The market for CO2 capture is at an inflection point
The market for CO2 capture is at an inflection point The Inflation Reduction Act, which was passed by Congress in August 2022, increases tax refund from 50 to 85 USD per ton for carbon capture in the US Sources: New York Times, Bloomberg 4 © 2022 CO2 CAPSOL
Slide 6: 46% annual growth in CO2 capture required by 2030
46% annual growth in CO2 capture required by 2030 Path to net zero: CO2 capture capacity required by 2030 Capacity by segment Required 2030-2050 850 Biomass (BECCS) 800 750 Other fuel H2 700 transformation 650 Million tons C02 per year 600 Chemicals CO2 capture capacity 550 growth required 500 annua
Slide 7: A competitive solution in an attractive business model
A competitive solution in an attractive business model Reduced energy consumption and capture cost • ~40% lower capture cost vs comparable solutions1 due to patented Cost-leading carbon capture solution energy recuperation reducing energy consumption • Potassium carbonate is a cheaper solvent compar
Slide 8: Path to net zero calls for EUR ~13bn of CO2 capture technology capex
Path to net zero calls for EUR ~13bn of CO2 capture technology capex to be sanctioned next eight years Total estimated Required new CO2 Required sanctioning of technology licensing Required CO2 capture capture capacity for new CO2 capture opportunity based on Potential CO2 Capsol capacity for path t
Slide 9: Building a leading global carbon capture tech provider
Building a leading global carbon capture tech provider Long-term targets Illustrative revenues and pre-tax profit, NOK million 5% technology licensing market share EUR 7-12/ton per capacity installed 40-60% pre-tax profit margin 0 -25 687 275 915 458 Assumptions 2021 2026 2030 • Demonstration units
Slide 10: Investing to establish leading position early
Investing to establish leading position early Cost considerations Illustrative capex and opex, NOK million Currently investing in organisation to win market share, fully funded organically 20 20 Opex at 40-60% Capex relates to demonstration units proving application and de-risking projects 412 371 A
Slide 11: Experienced management team dedicated to create value
Experienced management team dedicated to create value Jan Kielland, Chief Executive Officer Cato Christiansen, Chief Technology Officer >40 years´ experience with management and board Former Shell, SPT Group and the Norwegian Ministry of positions in the energy sector internationally. MSc in Petrole
Slide 12: A highly competitive solution developed and partnerships secured
A highly competitive A highly competitive solution developed solution andand developed partnerships secured partnerships secured 11
Slide 13: Proven technology reusing energy in the capture process
Proven technology reusing energy in the capture process Patented heat recuperation process with potassium carbonate • CO2 Capsol’s EoP technology is maximizing efficiency of the absorption/desorption process • Near zero emission to air and no amine degradation products High-purity CO2 • The captured
Slide 14: Leading on energy consumption and capture cost
Leading on energy consumption and capture cost Lower energy …~40% lower capture cost than consumption 1 and… traditional amine technology Electricity Mostly heat Consumption consumption Net capture costs reduced further if €36-58 2 No additional ~2,5GJ residual heat can external heat required be mon
Slide 15: Efficient installation and safe operations
Efficient installation and safe operations Competing mature technologies EASE OF Stand-alone unit. Can be installed and Often requires integration into host-plant’s steam INTEGRATION operated independent of parent plant. production. SOURCE OF Electricity only or steam. Only require a power cable Req
Slide 16: Established partnerships across the value chain
Established partnerships across the value chain EPC provider for licensing model Development & supply cooperation International EPC provider for Energy and Infrastructure The focus of the cooperation lies in the development Projects with broad inhouse capabilities to deploy Capsol and supply capabil
Slide 17: On track for building a global carbon capture leader
On A highly track forcompetitive building a solution global developed carbon and capture leader partnerships secured 16
Slide 18: Three main offerings to support all kinds of emitters
Three main offerings to support all kinds of emitters Demonstration unit: Small-scale Large-scale CapsolGoTM 700 tons CO2/year +/- 100,000 tons CO2/year 250,000+ tons CO2/year Verify technology with client’s flue gas to reduce Potential for module-based plants Licensing of technology – delivery unce
Slide 19: First large-scale project won with Stockholm Exergi
First large-scale project won with Stockholm Exergi In July 2022, CO2 Capsol signed a license agreement for Europe’s first large-scale negative emissions plant with Stockholm Exergi • Stockholm Exergi provides power, district heating and cooling. Owned 50% by the City of Stockholm and 50% by long-te
Slide 20: Demonstration unit deployed for Öresundskraft
Demonstration unit deployed for Öresundskraft In September 2022, CO2 Capsol started a CapsolGoTM demonstration campaign at Öresundskraft’s energy-from-waste plant in Helsingborg • The independent test operator will be Captimise and the campaign is estimated to take 4-5 months • The demonstration pro
Slide 21: Roadmap for establishing a leading market position
Roadmap for establishing a leading market position Winning initial projects Capturing market share Scaling revenue 2022-2023 2024-2025 2026-2030 • 2 mobile demonstration units in • Additional demonstration units • Reach 5% market share operation • Secured 8 small projects or more • Consider extendin
Slide 22: 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 capability Small player • A clear strategic roadmap for organic growth and op
Slide 23: Investment highlights
Investment highlights • Path to net zero calls for EUR ~13bn of carbon capture technology capex to 46% annual growth in CO2 capture be sanctioned next eight years capacity required by 2030 • Cement, power generation and chemicals are key drivers A competitive solution and • Attractive solution: Prov
Slide 24: Appendix
A highly competitive Appendix solution developed and partnerships secured 23
Slide 25: Achieved milestones and near-term targets
Achieved milestones and near-term targets Achieved milestones Near-term targets Selected as preferred Successful test at the capture solution for Broad global Värtan power plant in Stockholm biomass deployment of CO2 First sanctioning(s) for Stockholm power plant pilot Capsol´s technology large scal
Slide 26: Carbon capture and storage value chain
Carbon capture and storage value chain Current scope CO2 Carbon Liquefaction & emission/ Transport Storage capture intermediate plant storage 25% 25% 25% 25% Full-cycle capture cost estimated to EUR 25-30 per ton with CO2 Capsol’s solution Source: Company information. Note: Percentages are meant to
Slide 27: Patents value generation – reuse of energy
Patents value generation – reuse of energy HPC Patented Technology Hot potassium carbonate widely CO2 Capsol’s proprietary Capsol EoP is a HPC technology that used to capture CO2 in post technology takes HPC from “safe recuperates most of the energy in the combustion processes due to safe and proven
Slide 28: Continuously expanding patent portfolio
Continuously expanding patent portfolio Patent family 3: Patent family 4: Patent family 6: Patent family 7: Patent family 1: Combined storage Method and plant Thermal power Purification of flue Low emission solution for natural for transport of rich plant with CO2 gas from marine thermal powerplant
Slide 29: New US tax regime is turning capture into a benefit
New US tax regime is turning capture into a benefit Current tax regime Full CCS Cost - Example US project [EUR tons of CO2 Captured] 14 26 10 57 43 21 Capture cost Liquefaction/Compression Transportation & Storage Total Net cost to client Q45 Tax Refund New tax regime Full CCS Cost - Example US proj