Tidewater Renewables Ltd. · TSX:LCFS

Tidewater Renewables — Investor Presentation (November 2022)

27 slides from Tidewater Renewables's investor presentation, November 2022

  1. Slide 1: Tidewater Renewables Ltd. Investor Presentation

    Tidewater Renewables Ltd. Investor Presentation November 2022

  2. Slide 2: Disclaimers

    Disclaimers ADVISORIES AND CAUTIONARY STATEMENTS CAUTIONARY NOTE: This presentation includes forward-looking statements or information (collectively referred to herein as “forward looking statements”) within the meaning of applicable securities legislation. The information contained in this document

  3. Slide 3: Disclaimers (Continued)

    Disclaimers (Continued) USE OF NON-GAAP MEASURES: This presentation refers to “Adjusted EBITDA” and “run-rate EBITDA”, which do not have any standardized meanings prescribed by generally accepted accounting principles in Canada (“GAAP”) and as such, may not be comparable to similar measures presente

  4. Slide 4: Tidewater Renewables Overview

    Tidewater Renewables Overview CORPORATE SNAPSHOT Investment Highlights Capitalization  Renewables business with significant Share Price1 ($/sh) $10.25 government support, strong economics on projects and contracted cash flow Shares Outstanding (MM) 34.7  Focused on the production of renewable dies

  5. Slide 5: Tidewater Renewables Asset Map

    Tidewater Renewables Ltd. A CANADIAN ENERGY TRANSITION LEADER WITH A FOCUS ON RENEWABLE FUELS Tidewater Renewables Asset Map  Tidewater Renewables is an energy transition company 1 2 3 4 Prince George Brazeau River Ram River Rimrock focused on the production of low carbon intensity fuels Existing A

  6. Slide 6: Tidewater Renewables Business Model is Underpinned by Products

    Tidewater Renewables Business Model is Underpinned by 3 Products NEW ENERGY TRANSITION PLATFORM CATERS TO A GROWING GLOBAL DEMAND BASE Multi-faceted green energy platform with Renewable Diesel Near-Term1,2 Long-Term1,2 strong ESG attributes 13.4B Gallons 18.0B Gallons  Deliver Carbon Intensity ("CI

  7. Slide 7: Tidewater Renewables Overview

    Tidewater Renewables Overview BUSINESS OVERVIEW Existing Business + Funded Growth Future Growth  Portfolio of assets currently operating, near completion or  Significant future growth opportunities significantly progressed/de-risked 1 1 Base Business Base Business Growth  Acquisition of existing

  8. Slide 8: Renewable Diesel Refinery and Associated Renewable Hydrogen

    Renewable Diesel Refinery and Associated Renewable Hydrogen PROJECT OVERVIEW: FLAGSHIP ASSET RECEIVED FID WITH CONSTRUCTION COMMENCED IN Q3 2021 Renewable Diesel Refinery co-located at the Prince George Refinery  Utilizes renewable feedstocks to produce Renewable Diesel  Project includes an over-b

  9. Slide 9: Co-Processing Project Overview

    Co-Processing Project Overview CO-PROCESSING PROJECTS Co-Processing Projects utilize existing refinery process units to blend in biogenic feedstocks and produce renewable products  Canola Co-Processing: Project blends canola oil as feedstock directly into the Unifiner at PGR to produce renewable di

  10. Slide 10: Summary of Capital Projects

    Summary of Capital Projects IMPACTFUL PORTFOLIO OF CAPITAL PROJECTS DEVELOPED IN-HOUSE AT VARIOUS STAGES OF DEVELOPMENT Gross Net Run-Rate Namplate CI Project Name Term Capex Capex EBITDA ISD Feedstock Primary End Product Capacity Reduction5 ($MM) ($MM) ($MM) Canola Co-Processing Near-term 300 bbl/d

  11. Slide 11: Strategic Renewable Natural Gas and Feedstock Partnership

    Strategic Renewable Natural Gas and Feedstock Partnership TRANSACTION SUMMARY On April 4, 2022, Tidewater Renewables Ltd. (“TWR”) (TSX: LCFS) entered into a strategic renewable natural gas partnership (the “RNG Facilities Partnership”) with Rimrock RNG Inc. (“Rimrock”) and a strategic feedstock part

  12. Slide 12: Strategic Renewable Natural Gas and Feedstock Partnership

    Strategic Renewable Natural Gas and Feedstock Partnership STRATEGIC BENEFITS  Material government support and expected investment grade offtakes deliver contracted cash flow base with strong rates of return  Project sequencing will allow future projects to be self-funded via prior asset cash flow,

  13. Slide 13: Strategic Renewable Natural Gas and Feedstock Partnership

    Strategic Renewable Natural Gas and Feedstock Partnership ASSET SUMMARY  Project Overview  Partnership plans to begin construction on their first Projects 1 – 3 development to Alberta-based RNG Facility at High River (the “High River LCFS Passed & in effect focus in Alberta Likely future LCFS Faci

  14. Slide 14: Run-Rate EBITDA Summary

    Run-Rate EBITDA Summary CASH FLOW PROFILE ANCHORED BY BASE BUSINESS RUN-RATE EBITDA VIA INTIAIL DROP-DOWN & CAPITAL PROJECTS Tidewater Renewables is expected to provide material EBITDA generation and organic EBITDA growth from existing assets, and impactful capital projects  Base business cash flow

  15. Slide 15: Growth Opportunities Beyond 2023

    Growth Opportunities Beyond 2023 PROJECT PIPELINE WITH MATERIAL ADDITIONAL GROWTH OPPORTUNITIES Renewable Diesel Business Unit - Other Potential Growth Projects Hydrogen Business Unit - Other Potential Growth Projects Renewable Diesel Project #2 / Sustainable Aviation Fuel Renewable Hydrogen Project

  16. Slide 16: Investment Highlights

    Investment Highlights MULTIFACETED GREEN ENERGY PLATFORM PROVIDING LOW CARBON INTENSITY FUELS Renewables Business with Significant Government Support, Strong Economics on Projects and Contracted Cash Flow  Anticipate receipt of approximately $120 million in government funding through multiple agree

  17. Slide 17: Tidewater Renewables Leadership Team

    Tidewater Renewables Leadership Team SUCCESSFUL TRACK RECORD OF EXECUTING LARGE SCALE PROJECTS Tidewater Renewables Reduces Corporate G&A via a Shared Services Agreement with Tidewater Midstream  Shared services to cover accounting, financial, tax, legal, office administration, IT, human resources

  18. Slide 18: Board of Directors of Tidewater Renewables

    Board of Directors of Tidewater Renewables EXPERIENCED BOARD OF DIRECTORS WITH INDEPENDENCE FROM TIDEWATER MIDSTREAM Joel MacLeod, CA  Director and Chairman of Tidewater Midstream since February 2015 Executive Chairman,  Chief Executive Officer of Tidewater Midstream since April 2015 Chief Executi

  19. Slide 19: Appendix: Supplemental Information

    Appendix: Supplemental Information 19

  20. Slide 20: Global Commodity Forecast

    Global Commodity Forecast MARKET FUNDAMENTALS SUPPORTING EMERGING RENEWABLE VERTICALS Renewable Diesel Hydrogen Renewable Natural Gas  Advantages over biofuel and identical properties  Involves the processing, storage and/or  Involves projects that capture gas from to fossil fuel based diesel tra

  21. Slide 21: Infrastructure and Logistics

    Infrastructure and Logistics BALANCED OFFERING ACROSS THREE LOCATIONS WITH SUPERIOR MARKET CONNECTIVITY 1 Prince George Refinery Existing Assets Connected to All Major Markets in N.A. Existing Logistics Deep Infrastructure Expertise Relationships Renewable Diesel Refinery: existing renewable tankage

  22. Slide 22: Renewable Diesel Overview

    Renewable Diesel Overview LIFE-CYCLE CARBON INTENSITY In fact, by just filling the tank, the engine will generate ~80-90%1 reduction in CO2 compared to regular fossil fuel-based diesel 1. Based on Life Cycle Assessment done by (S&T)2 Consultants Inc. and specific to Tidewater’s renewable diesel proj

  23. Slide 23: Carbon Reduction Credits Overview

    Carbon Reduction Credits Overview Canada United States CFS RIN Clean Fuel Standard (“CFS”) – initiated by the Canadian federal government Renewable Identification Numbers (“RIN”) – issued by the U.S. to pursue a Canada-wide clean fuel standard and slated to come into effect in Environmental Protecti

  24. Slide 24: Canadian Clean Fuel Standard (CFS)

    Canadian Clean Fuel Standard (CFS) The CFS will be implemented in July 2023 to reduce the carbon intensity (CI) of fuels Canada CFS CI Reduction Requirements1 across the country. Credit creation from low CI fuel projects began in June 2022, establishing a modest credit bank prior to the coming-to-fo

  25. Slide 25: BC Low Carbon Fuel Standard (BC LCFS)

    BC Low Carbon Fuel Standard (BC LCFS) The BC-LCFS was originally introduced in 2010 to reduce the carbon intensity (CI) of BC LCFS Credit Price History1 – C$/Credit fuels used in the province1 Year Minimum2 Average2 Maximum  Applies to all fuels used for transportation in BC except for fuel used by

  26. Slide 26: California Low Carbon Fuel Standard (CA LCFS)

    California Low Carbon Fuel Standard (CA LCFS) The CA LCFS is the first state-level low-carbon initiative aimed at CA LCFS Credit Price History – US$/Credit encouraging the use and production of low-carbon fuels Year Minimum Average Maximum  Required producers of petroleum-based fuels to reduce CI o

  27. Slide 27: Review of HDRD Prices Across Different Markets

    Review of HDRD Prices Across Different Markets  Total renewable diesel sale values (comprised of the diesel sale price and government incentives that producers receive) in California, Oregon and BC are currently $8.76, $8.76 and $7.11 US/gallon, respectively  BC fuel buyers must pay an equivalent

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