Verbio Se · XETR:VBK

Verbio — Verbio Vereinigte BioEnergie — Investor Day (September 2023)

34 slides from Verbio's investor day presentation, Sep 28, 2023

  1. Slide 1: The RNG Opportunity

    The RNG Opportunity Prof. Dr. Oliver Lüdtke, Claus Sauter, Stefan Schreiber Capital Markets Day September 28, 2023

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking information, which is based on assumptions and estimates of the company management of Verbio Vereinigte BioEnergie AG. Even though company management believes that these assumptions and estimates are correct, the actual future development and act

  3. Slide 3: Verbio's RNG Innovation: A Technological Advantage

    Verbio's RNG Innovation: A Technological Advantage Prof. Dr. Oliver Lüdtke 3

  4. Slide 4: RNG – Our Leading Technology (1)

    RNG – Our Leading Technology (1) Straw to RNG as Monofermentation 4

  5. Slide 5: RNG – Our Leading Technology (2)

    RNG – Our Leading Technology (2) Ethanol & RNG Biorefinery (I) 5

  6. Slide 6: RNG – Our Leading Technology (3)

    RNG – Our Leading Technology (3) Ethanol & RNG Biorefinery (II) 6

  7. Slide 7: RNG – Our Leading Technology (4)

    RNG – Our Leading Technology (4) Areas of our technology: I. Raw material pretreatment II. Fermentation III. Gas Purification to RNG IV. Residual treatment V. + for Straw & for Biorefinery / rawmaterial supply in our hands Operation Excellence team is globally optimizing the supply chain For example

  8. Slide 8: Our Competitive Advantage (1)

    Our Competitive Advantage (1) We have all technology success factors in our hand: I. IP + R&D = Research and Development teams II. EPC = Engineering / Procurement & Construction teams III. OE = Operational Excellence teams IV. Plant = Plant teams Examples: ✓ OE designs plant on latest developments &

  9. Slide 9: Our Competitive Advantage (2)

    Our Competitive Advantage (2) Multiple feedstock: • All straw types (all lignocellulose types) • All animal waste streams (manure) • All industrial waste streams consisting mainly of organic matter We focus on industrial scale & industrial design: I. First plant 25 MW in 2011/12 (world largest plant

  10. Slide 10: Mandated Markets and Regulatory Arbitrage

    Mandated Markets and Regulatory Arbitrage Claus Sauter 10

  11. Slide 11: GHG Abatement Costs

    GHG Abatement Costs 300 250 200 Abatement Cost When aiming for 150 higher levels of emission reduction, each additional unit 100 of reduction becomes more 50 expensive to achieve 0 43 13 19 25 31 37 49 55 61 67 73 79 85 91 97 1 7 175 103 109 115 121 127 133 139 145 151 157 163 169 181 Source: Own Il

  12. Slide 12: German Regulatory Framework: Carbon Pricing in Different Sectors

    German Regulatory Framework Carbon Pricing in Different Sectors: EU Carbon Allowance vs. German GHG Quota Price in €/t CO2-eq 600 German GHG quota price 500 'Conventional' 400 300 200 EU ETS allowance price 100 0 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Source: SCB, Refi

  13. Slide 13: German Regulatory Framework: Carbon Pricing in Transport

    German Regulatory Framework Carbon Pricing in Transport: GHG Reduction Costs of Biofuels vs. GHG Ticket Price in €/t CO2-eq RME Ethanol T2 1000 German GHG quota price 'Conventional' 800 600 400 200 0 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Source: SCB 13

  14. Slide 14: German Regulatory Framework: Feedstock Determines Value

    German Regulatory Framework Feedstock Determines Value (CH4 ≠ CH4) Fossil Corn Straw/Stillage Electricity + CO2 Natural Gas RNG RNG RNG CH4 CH4 CH4 CH4 LNG/CNG 1. G Biofuel 2. G Biofuel SynGas Counted 1x towards Counted 2x towards Counted 2x towards GHG mandate GHG mandate GHG mandate 14

  15. Slide 15: Competitive Advantage of Verbio's Broad Product Portfolio

    German Regulatory Framework Competitive Advantage of Verbio’s Broad Product Portfolio in GHG Mandate World 25.0% 2.6% GHG Advanced 6.0% Reduction Sub-Quota 0.1% Obligation 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Crop Cap Regulatory UCO* Cap

  16. Slide 16: US Regulatory Framework: RINs

    US Regulatory Framework RINs – The Currency of the Renewable Volume Obligation Conventional Renewable Fuel (D6) Example feedstock: Corn Advanced biofuel (D5) Example feedstock: Sugarcane Cellulosic biofuel (D3) Biomass-based Diesel (D4) Example feedstock: Example feedstock: Corn stover Soybean oil,

  17. Slide 17: US Regulatory Framework: RIN Prices

    US Regulatory Framework RINs – The Currency of the Renewable Volume Obligation in USDct/RIN Volume 400 Mandate Value 350 assigned 300 based on feedstock 250 200 150 100 50 0 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 RIN D6 RIN D4 RIN D3 RIN D5 Source: Argus 17

  18. Slide 18: US Regulatory Framework: Low Carbon Fuel Standard

    US Regulatory Framework Low Carbon Fuel Standard Creates a Local Market for Low CI Products Price in USD/t CO2-eq GHG Reduction Mandate Value 250 assigned based on 200 CI 150 100 50 0 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Source: OPIS 18

  19. Slide 19: Regulatory Arbitrage

    Regulatory Arbitrage Illustrative Value Components of RNG in Different Markets at Different Times in USD/MMBtu GHG quota GHG quota LCFS LCFS RIN RIN Gas price Gas price Gas price Gas price California - Feb 2023 California - Aug 2023 Germany - Feb 2023 Germany - Aug 2023 Source: Own calculation based

  20. Slide 20: RNG Demand in German Transport

    RNG Demand in German Transport RNG Demand Projected to Grow until 2030 in GWh 6,000 5500 4,000 1,849 2,000 1,624 1,624 1,642 1,444 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: AGEB (2017-2021), VERBIO forecast (2030) 20

  21. Slide 21: Bio-CNG/ LNG in Germany

    Bio-CNG/ LNG in Germany Positioning Verbio along the RNG Value Chain 21

  22. Slide 22: Voluntary Market in North America

    Voluntary Market in North America Market Size and Growth Projection Stefan Schreiber 22

  23. Slide 23: Voluntary Markets in North America: Current Market Size

    Voluntary Markets in North America Current Market Size US: Ample Growth Opportunities for Verbio US D3 RIN Obligated Transport Market RNG Production by Feedstock in TWh VERBIO USA D3 Transport Nevada D3 Market Obligation Landfill Gas Production Market size: Capacity 21.2 TWh Livestock Manure Wastewa

  24. Slide 24: Voluntary Markets in North America: Price Growth

    Voluntary Markets in North America RNG Demand Projected to Grow until 2030 in GWh Voluntary Price (USD/MMBtu) Against Henry Hub and RINs is Growing 40 35 D3 RIN 30 25 Voluntary Market Price for Stillage RNG 20 15 D5 RIN 10 5 Henry Hub 0 2018 2019 2020 2021 2022 2023 2024 Source: Verbio Analysis // C

  25. Slide 25: Voluntary RNG price based on Carbon Intensity

    Voluntary Markets in North America Voluntary RNG price based on Carbon Intensity (RED II methodology) Voluntary Price is Growing and Diverging based on Carbon Intensity Score* Voluntary Market Price 30 for -20 CI score** 25 Voluntary Market Price for Stillage RNG (+7)** 20 Voluntary Market Price for

  26. Slide 26: Voluntary Markets in North America: Future Market Size

    Voluntary Markets in North America Future Market Size, KMMBTU/d (includes IRA) 2023: 434 kMMBTU/d = 46,4 TWh p.a.* 2040: 1,951 kMMBTU/d = 208,6 TWh p.a. Source: BCG, June 2023; *more ambitious than Verbio Analysis with 35,7 TWh p.a. (see Slide 24) 26

  27. Slide 27: Growth Drivers for Voluntary RNG

    Voluntary Markets in North America Growth Drivers for Voluntary RNG • Corporate sustainability goals / ESG targets - best avenue • Matching RNG Supply with LNG Export Capacity to open for decarbonizing thermal demand and difficult industries new markets for RLNG (e.g. steel) • The increasing value o

  28. Slide 28: Verbio's competitive advantage with biorefinery concept

    Voluntary Markets in North America Verbio‘s competitive advantage with biorefinery concept: Ethanol plus stillage gas Source: Verbio analysis 28

  29. Slide 29: Status IRA Opportunities and Challenges

    Status IRA Opportunities and Challenges Stefan Schreiber 29

  30. Slide 30: Status Inflation Reduction Act (IRA)

    Status Inflation Reduction Act (IRA) IRA Provisions relevant for Verbio Section 48: Investment Tax Credit (ITC) Section 45Z: Clean Fuel Production Credit (CFPC) • Maximum credit equal to 50% of "qualified biogas property" • Production Tax Credit for low-emissions fuels between 2025 and 2027 expendit

  31. Slide 31: IRA – Opportunities & Challenges

    IRA – Opportunities & Challenges Completed Investments New Investments • Nevada Phase 2 (stillage gas) can apply for the • The ITC remains an estimation because the IRS guidelines ITC (30%) without being bound to other have not yet been published (what is eligible?) requirements • 45Z / 45V require

  32. Slide 32: Presenters

    Presenters Management Board Claus Sauter ‘CEO, Chairman of the Management Board Responsible for global business development, global marketing and communication, global hu- man resources, global trading, global risk manage- ment and specialities, sustainability Bernd Sauter COO Europe Responsible for

  33. Slide 33: Point of contact

    Point of contact Ulrike Kurze Alina Köhler Marketing & PR Investor Relations Ritterstraße 23 (Oelßner‘sHof) Ritterstraße 23 (Oelßner‘sHof) 04109 Leipzig 04109 Leipzig E-Mail: pr@verbio.de E-Mail: ir@verbio.de 33

  34. Slide 34: VERBIO Vereinigte BioEnergie AG

    VERBIO Vereinigte BioEnergie AG Ritterstraße 23 T +49 341 308530-0 04109 Leipzig F +49 341 308530-999 Germany info@verbio.de www.verbio.de

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