Airjoule Technologies Corporation · NASDAQ:AIRJ
Airjoule Technologies — Power & Digital Infrastructure Acquisition II — SPAC Merger (October 2023)
40 slides from Airjoule Technologies's SPAC merger presentation, Oct 4, 2023
Slide 1: Sustainably Meeting the Challenges of Water Supply and Comfort Cooling
SUSTAINABLY MEETING THE CHALLENGES OF WATER SUPPLY AND COMFORT COOLING
Slide 2: Basis of Presentation
Basis of Presentation These presentation materials (“Presentation Materials”) are provided for informational purposes only and have been prepared to assist interested parties in a proposed private placement in making their own evaluation with respect to an investment in connection with a potential b
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements in these Presentation Materials may be considered “forward - looking statements” as defined in the Private Securities Litigation Reform Act of 1995 and within the meaning of the federal securities laws with respect to the proposed business combination be
Slide 4: Trademarks
Trademarks These Presentation Materials contain trademarks, service marks, trade names and copyrights of third parties, which are the property of their respective owners . The use or display of third parties' trademarks, service marks, trade names or products in these Presentation Materials are not
Slide 5: Risk Factors
Risk Factors For a non - exhaustive description of the risks relating to an investment in a private placement in connection with the Potential Business Combination please review "Risk Factors" at the end of this presentation . Changes and Additional Information in Connection with SEC Filings The inf
Slide 6: Transaction Summary
Slide 6 Montana Technologies | October 2023 TRANSACTION SUMMARY SUMMARY OF PROPOSED TRANSACTION • Montana Technologies has created a transformational technology that provides significant energy efficiency gains in heating, ventilation, and air conditioning (“HVAC”) and air to potable water applicati
Slide 7: Investment Highlights
Slide 7 Montana Technologies | October 2023 INVESTMENT HIGHLIGHTS • Transformational Technology: 5 – 10x energy reduction, air - to - water and HVAC solutions – Applications across dehumidification, atmospheric water generation and evaporative cooling help solve two of the world’s most problematic i
Slide 8: Montana Technologies Experienced Team with Strong Track Record
Slide 8 Montana Technologies | October 2023 • Over 30 years of experience successfully founding and leading innovative product - based companies • Founded Core Innovation, predecessor to Montana Technologies • Previously founded Jore Corporation, a power tool and accessories manufacturer that exceed
Slide 9: BASF and PNNL Partnerships
Slide 9 Montana Technologies | October 2023 Badische Anilin und Sodafabrik ("BASF") is the world’s largest chemical producer with facilities around the world • Montana Technologies and BASF have implemented a development agreement for the production of engineered super - porous materials that are ap
Slide 10: Solving Demand for Air Conditioning & Water Stress
Slide 10 Montana Technologies | October 2023 Demand for Air Conditioning (1) Water Stress (2) SOLVING DEMAND FOR AIR CONDITIONING & WATER STRESS AIRJOULE tm ADDRESSES TWO OF THE WORLD’S MOST PROBLEMATIC ISSUES: AIR CONDITIONING AND WATER STRESS 1. Solving the Global Cooling Challenge; https://rmi.or
Slide 11: New Government Legislation Furthering the Need for AirJoule
Slide 11 Montana Technologies | October 2023 July 11, 2023 The Associated Press (2) EPA Enforcing Stricter Limits on Hydrofluorocarbons (“HFCs”) NEW GOVERNMENT LEGISLATION IS FURTHERING THE NEED FOR AN AIRJOULE tm SYSTEM June 24, 2023 GlobeNewswire (1) ASHRAE Approves Airborne Infection Risk Mitigat
Slide 12: The Technology Breakthrough: Metal Organic Frameworks
Slide 12 Montana Technologies | October 2023 THE TECHNOLOGY BREAKTHROUGH HOW AIRJOULE tm ENABLES COMMERCIALIZATION OF METAL ORGANIC FRAMEWORKS (“MOF S ”) AirJoule tm System • MOFs have enormous water uptake, holding more than half their weight in water • Montana Technologies has engineered a proprie
Slide 13: AirJoule Transformational Technology
Slide 13 Montana Technologies | October 2023 AIRJOULE tm TRANSFORMATIONAL TECHNOLOGY AirJoule tm Improvements Conventional Systems Expected 45 – 90 WH/L of water harvesting 5 - 10x ENERGY REDUCTION (1) Energy intensive vapor compression ( 450 WH/L ) Atmospheric Water Harvesting Expected 45 - 90 WH/L
Slide 14: How AirJoule Works
Slide 14 Montana Technologies | October 2023 HOW AIRJOULE tm WORKS AIR IN, WATER AND COOLED, DEHUMIDIFIED AIR OUT CURRENT UNIT IN TESTING DELIVERS UP TO 200 LITERS PER DAY AT 130 WATT HOURS / LITER (“WH/L“) TARGETED PRODUCTION UNIT EXPECTED TO DELIVER UP TO 360 LITERS PER DAY AT BETWEEN 45 – 90 WH/L
Slide 15: The Technology Breakthrough: Engineered Super-Porous Materials
Slide 15 Montana Technologies | October 2023 THE TECHNOLOGY BREAKTHROUGH AIRJOULE tm ENABLES THE AMAZING CHARACTERISTICS OF ENGINEERED SUPER - POROUS MATERIALS TO BE REALIZED MOFs are super adsorbent materials Thermal constraints have limited the potential of MOFs in historical dehumidification effo
Slide 16: AirJoule Comparative Analysis
Slide 16 Montana Technologies | October 2023 Cost of Water per Liter $0.3700 - $1.3200 (6) $0.0160 - $0.0630 (5) $0.005 - $0.0200 Water Delivered in 3 to 5 Gallon Jugs Tanker Truck Delivery of Bulk Water Base Cost of AirJoule tm Produced Water AIRJOULE tm COMPARATIVE ANALYSIS (1)(2) AIRJOULE tm IS A
Slide 17: Montana Technologies Manufacturing Ecosystem
Slide 17 Montana Technologies | October 2023 MONTANA TECHNOLOGIES MANUFACTURING ECOSYSTEM Proprietary Key Components: 1. MOF Coated Contactor , 2. Air Pump , 3. Water Vapor Condenser , 4. Vacuum Compressor HVAC OEMs Powered by AirJoule tm Air - to - Water Systems End User Finished Units AirJoule tm
Slide 18: Coated Contactor Strategy
Slide 18 Montana Technologies | October 2023 MONTANA TECHNOLOGIES’ COATED CONTACTOR STRATEGY DELIVER MOF COATED AIRJOULE tm CONTACTORS TO OEMS FOR INTEGRATION INTO EXISTING HVAC SYSTEMS Source Aluminum Heat Exchangers from Wide Variety of Suppliers 1 ALUMINUM HEAT EXCHANGERS 2 MOF POWDER COATING Pro
Slide 19: Key Components Plan
Slide 19 Montana Technologies | October 2023 KEY COMPONENTS PLAN: PROPRIETARY TECHNOLOGY USING MATURE MANUFACTURING PROCESSES (1) SCALE - UP: DELIVER MOF COATED CONTACTORS, VACUUM, AND CONDENSER SYSTEMS ▪ MT/CAMT ▪ OEM ▪ OEM ▪ OEM ▪ OEM ▪ MT/CAMT • Proprietary Contactors: manufacturing collocated w/
Slide 20: Key Components Plan Unit Economics
Slide 20 Montana Technologies | October 2023 MONTANA TECHNOLOGIES’ KEY COMPONENTS PLAN (1) MONTANA TECHNOLOGIES PLANS TO PROVIDE AND SELL PROPRIETARY MOF COATED CONTACTORS IN COMBINATION WITH AIR PUMPS, VACUUM COMPRESSORS, AND WATER VAPOR CONDENSERS TO MANUFACTURE FINISHED AIRJOULE tm UNITS MOF Mate
Slide 21: Manufacturing Line Economics
Slide 21 Montana Technologies | October 2023 MANUFACTURING LINE ECONOMICS (1) IRRESPECTIVE OF OWNERSHIP MODEL, MONTANA TECHNOLOGIES EXPECTS TO QUICKLY ACHIEVE CAPITAL - EFFICIENT PRODUCTION THAT ALLOWS FOR THE SELF - FUNDING OF FUTURE MOF COATED CONTACTOR LINES 50 / 50 Joint Venture (2) Sole Ownersh
Slide 22: Capital-Efficient Scaling of Production: Stage One
Slide 22 Note: Assumes no benefits from Inflation Reduction Act (IRA) and all - equity financing. 1. Illustrative. Based on management estimates, resulting from estimates provided by global suppliers. 2. Montana Technologies’ joint venture with CATL provides for a 50/50 ownership split and 50/50 sha
Slide 23: Peer Trading Comparables
Slide 23 Montana Technologies | October 2023 Water - Related Players (1) Average Key HVAC Players Average $91.03 $172.82 $52.89 $169.40 - $202.91 $12.93 $374.44 $53.21 $15.68 $55.20 - Stock Price 21,923 4,732 6,712 48,285 20,413 46,344 2,385 13,298 36,200 46,111 46,237 31,763 Equity Value ($mm) 23,8
Slide 24: Illustrative De-SPAC Valuation Framework
Slide 24 Montana Technologies | October 2023 ILLUSTRATIVE DE - SPAC VALUATION FRAMEWORK (1)(2) ASSUMING 3 AND 6 GLOBAL LINES OF PRODUCTION 20.0x 15.0x 10.0x Illustrative Fully Distributed EBITDA Multiple ~$150 million ~$150 million ~$150 million 3 Production Lines – All 50/50 Joint Ventures (Annuali
Slide 25: AirJoule Comparative Analysis
Slide 25 Montana Technologies | October 2023 AIRJOULE tm COMPARATIVE ANALYSIS Atmospheric Water Generation Conventional HVAC Technology Next - Gen HVAC Technology Vapor compression refrigerant systems / hybrid desiccant ( 4 ) Vapor compression refrigerant systems Vapor compression refrigerant system
Slide 26: Comparison with Other De-SPAC Companies
Slide 26 Montana Technologies | October 2023 Utilities & Energy Storage Utilities & Energy Storage EV Charging EV Battery Components EV Batteries 24/7 CFE – Advanced Nuclear 24/7 CFE – Natural Gas Atmospheric Water Harvesting and HVAC Market NASDAQ: FLNC NYSE: STEM NYSE: CHPT NYSE: FREY NYSE: QS NYS
Slide 27: ~$455 Billion Total Addressable Markets
Slide 27 Montana Technologies | October 2023 TAM: >$355 billion (1) TAM: >$100 billion (2) Heating, Ventilation, and Air Conditioning (“HVAC”) Atmospheric Water Harvesting SHORT ANTICIPATED TIME TO MARKET ~$455 BILLION TOTAL ADDRESSABLE MARKETS (“TAM”) Q3 ‘19 ‘24 Q4 ‘23 Q1 ‘21 Total Addressable Mark
Slide 28: Transaction Overview
Slide 28 Montana Technologies | October 2023 TRANSACTION OVERVIEW MONTANA TECHNOLOGIES FINANCING CONTINUUM: FIRST, RAISE $100MM IN EITHER COMMON EQUITY OR CONVERTIBLE NOTES, THEN DESPAC IN Q4 OF 2023 PRELIMINARY SOURCES AND USES PRELIMINARY PRO FORMA VALUATION % $ ($ in millions) 66.2% $404 XPDB Sha
Slide 29: Investment Highlights
Slide 29 Montana Technologies | October 2023 INVESTMENT HIGHLIGHTS • Transformational Technology: 5 – 10x energy reduction, air - to - water and HVAC solutions – Applications across dehumidification, atmospheric water generation and evaporative cooling help solve two of the world’s most problematic
Slide 30: Appendix
APPENDIX Appendix
Slide 31: Brief History of CATL
Slide 31 Dec - 22 Jun - 23 Montana Technologies | October 2023 BRIEF HISTORY OF CATL (1) CATL HAS QUICKLY BECOME THE WORLD’S LARGEST LITHIUM - ION BATTERY PRODUCER BASED ON MARKET SHARE (CALCULATED BASED ON SALES AND SHIPMENTS) $300 $240 $180 $120 $60 $0 Jun - 18 Dec - 18 Jun - 19 Dec - 19 Jun - 20
Slide 32: AirJoule Patents and Patent Applications
Slide 32 Montana Technologies | October 2023 • Atmospheric water extractor self - regenerating dehumidifier • 31655 - e application under patent cooperative treaty – all countries • United states 31655 - e • China p.R. 31655 - e cn • India 31655 - e in patent cooperation treaty 31655 - e pct • Taiwa
Slide 33: Water Harvesting Metrics for Nominal CFM AirJoule System
Slide 33 Montana Technologies | October 2023 WATER HARVESTING METRICS FOR NOMINAL 750 CFM AIRJOULE tm SYSTEM (1)(2) LESS THAN HALF OF A CENT PER LITER (EXPECTED PRODUCTION) Moisture Removal Efficiency “MRE” (kg/kWh) Water Production (kg/h) Auxiliaries (W) Condenser Cooling Fan (W) AirJoule tm Fan (W
Slide 34: AirJoule Basic Process Flow Diagram
Slide 34 Montana Technologies | October 2023 1. Based on internal calculations of expected performance. AIRJOULE tm BASIC PROCESS FLOW DIAGRAM (1) TRADITIONAL DESICCANT AND DX SYSTEMS OPERATE AT ~1,100 WH/L AND ~450 WH/L, RESPECTIVELY. DOE STRETCH TARGET 190 WH/L, MONTANA HAS ACHIEVED 130 WH/L, AND
Slide 35: AirJoule Transformational Technology Water Heating
Slide 35 Montana Technologies | October 2023 1. http s://w ww. energy.gov/energysaver/water - heating 2. http s://w ww. engin e eringtoolbox.com/hot - water - consumption - person - d_91.html 3. https:/ /w w w.energy.gov/energysaver/sizing - new - water - heater AIRJOULE tm TRANSFORMATIONAL TECHNOLO
Slide 36: Water Heating Energy Consumption (COP)
Slide 36 Montana Technologies | October 2023 3 1 2 AIRJOULE tm TRANSFORMATIONAL TECHNOLOGY WATER HEATING ENERGY CONSUMPTION (COP) (1)(2) AirJoule tm Water Heater Value Component Vacuum Pump 15 Intake Pressure (mbar) 2.1 Compression Ratio 31.5 Discharge Pressure (mbar) 146 Discharge Temperature ( Σ C
Slide 37: Risk Factors
All references to the "company," "we," "us" or "our" refer to Montana Technologies and its consolidated subsidiaries prior to the Potential Business Combination . The risks presented below are non - exhaustive descriptions of certain of the general risks related to the business of Montana Technologi
Slide 38: Risks Relating to Business Operations
• We may depend on sole - source and limited - source suppliers for key components and products. If we are unable to source these components and products on a timely basis or at acceptable prices, we will not be able to deliver our products to our customers and production time and production costs c
Slide 39: Risks Related to Intellectual Property and Technology
Risks Related to Intellectual Property and Technology • Our patent applications may not result in issued patents, and our issued patents may not provide adequate protection, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to our
Slide 40: Risks Related to the Potential Business Combination
• If the Potential Business Combination’s benefits do not meet the expectations of financial analysts, the market price of our common stock may decline . • There can be no assurance that the post - combination company’s common stock will be approved for listing on the Nasdaq or that the post - combi
Power & Digital Infrastructure Acquisition II — SPAC Merger (October 2023) on 6ix