Next Hydrogen Solutions Inc · TSXV:NXH
Next Hydrogen Solutions — Investor Presentation (December 2023)
28 slides from Next Hydrogen Solutions's investor presentation, December 2023
Slide 1: Investor Presentation
Innovation in Water Electrolysis TM Investor Presentation December 2023 NXH:TSXV NXHSF:OTC
Slide 2: Disclaimer
2 Disclaimer Legal disclaimer This presentation of Next Hydrogen Solutions Inc. (“Next Hydrogen” or the “Company”) is for information only and shall not constitute an offer to buy, sell, issue or subscriber for, or the solicitation of an offer to buy, sell, issue or subscribe for any securities in a
Slide 3: What is Next Hydrogen?
3 What is Next Hydrogen? Next Hydrogen is the only public pure-play designer & manufacturer of electrolyzers in North America. Our electrolyzers use electricity and water to produce hydrogen, which is utilized as a clean energy source. • Electrolysis is the only way to produce green hydrogen • Our d
Slide 4: Investment Thesis
4 Investment Thesis 15 years of IP development with proven track record at Stuart Energy and Cummins (Hydrogenics) Pioneers in Water Combined 140+ years of experience in designing hydrogen generation systems Electrolysis 40 patents to cover multiple alkaline and PEM product roll-outs to expand
Slide 5: 2022 Achievements
5 2022 Achievements Commissioned three Bench Scale as well as Pilot Scale and Factory Acceptance test stands Test Capabilities Commenced producing hydrogen 24/7 using test assets to accelerate product development roadmap Delivered proof-of-concept electrolyzer to Hyundai and Kia Demonstrated
Slide 6: Near-Term Focus
6 Near-Term Focus Demonstrate significant improvement to our product line Achieve significant cost reduction and improvements in energy efficiency through our second-generation product line Demonstrate multi-MW production Show-case our second-generation product line in a market application Demon
Slide 7: Hydrogen Economy Tailwind
7 Hydrogen Economy Tailwind USD 320 billion direct investments into hydrogen projects announced through 2030, of which USD 29 To stabilize or reduce concentrations of CO2 in the atmosphere, the world billion have passed the final investment decision (FID). needs to reach net-zero emissions as soon a
Slide 8: Unprecedented Commitment on Green H2 from Countries Globally
8 Unprecedented Commitment on Green H2 from Countries Globally Hydrogen could be The Nord Stream 2 gas used to deliver 30% EU aims to install 2x40 GW pipeline could deliver of Canada’s end-use energy by 2050 of renewable hydrogen hydrogen from Russia to 270 GW of electrolyzers will be electrolyzers
Slide 9: Significant Electrolyzer Market Opportunity
9 Significant Electrolyzer Market Opportunity Market Opportunity by 2030 Market Opportunity by 2050 100 GW Global Hydrogen Production Mtpa Scenario >$12T 600 TOTAL ADDRESSABLE MARKET 500 Hydrogen 200 MW Opportunity by 2050 2020 Capacity of 2030 Target of Electrolyzers Green H2 Green H2 Production Pr
Slide 10: Next Hydrogen's Focus on Green Hydrogen Applications
Next Hydrogen’s Focus on Green Hydrogen 10 Applications Solutions to Power and Green Industrial Operations 95% of hydrogen used for industrial purposes is derived from fossil fuels and is responsible for 830 million tons of CO2 annually Hydrogen produced from green energy can dramatically lower
Slide 11: World class hydrogen expertise
World class hydrogen expertise Raveel Afzaal Michael Stemp Robert McGillivray 20+ years of designing and 20+ years experience in cleantech 10+ years capital markets experience as an developing hydrogen systems, former commercialization including 10 equity research analyst and venture Director of Adv
Slide 12: Producing Hydrogen: The Electrolyzer Landscape
12 Producing Hydrogen: The Electrolyzer Landscape Pure Play Electrolyzer Manufacturers Next Hydrogen captures key benefits of both electrolyzer technologies Electrolyzer Manufacturers PEM • High Current Density • High Dynamic Response • Lower Cost Materials • Enhanced Durability Dynamic Fuel Cell Ma
Slide 13: Competitive Differentiators
Competitive 13 Differentiators Superior Dynamic Higher Current Density Scalable Design Response Up to 2.5x current density, leading Superior dynamic response enables With approximately the same to 2.5x more hydrogen produced Next Hydrogen’s electrolyzers to footprint, Next Hydrogen’s while using the
Slide 14: Significant Advancement in Electrolyser Design
14 Significant Advancement in Electrolyser Design Electrolyzer Design All electrolyte and gas-liquid separation occurs at each cell plate, removing limiting Gases and liquids design features of separated right at the conventional cell plate Unique cell electrolyzers plate design Cooled electrolyte r
Slide 15: System Overview
15 System Overview NH-300 Hydrogen Generation System Schematic Open architecture with the best commercially available cell components Compact units, pre-assembled Electrical and Controls Container and ready to drop in at sites Electrolyzer Module Patented cellular architecture removes fluid-gas flow
Slide 16: Commercial Testing and Validation
16 Commercial Testing and Validation Successful Pilot Project Significant validation and advancement of electrolyser design architecture in a challenging nuclear application, resulting in a $7.7MM contract for this application with a blue-chip customer. One of the Largest On-site H2 Generation Proje
Slide 17: Patent Portfolio Geared Towards Green Hydrogen from the Beginning
17 Patent Portfolio Geared Towards Green Hydrogen from the Beginning Filing Priority Location(1)(2) Cell Electrolyzer Module July 2008 US (3), PCT, CA, Module Core water electrolyzer module design EP, CN, IN Power Dispatch System for Electrolytic Production of Power Hydrogen from Wind Power Octobe
Slide 18: Financial Highlights
18 Financial Highlights Balance Sheet at September 30, 2023 Assets Current Cash and cash equivalents $11,891,569 Share Capitalization Trade and other receivables Prepaid expenses and deposits $2,221,984 $363,276 Inventory $5,072,737 Total Current Assets $19,549,566 Trade and other receivables $55,73
Slide 19: Conclusions
19 Conclusions Next Hydrogen's team has a combined 140+ years of experience in designing hydrogen generation systems Next Hydrogen has developed the world's first Alkaline Next Hydrogen's electrolyser design is electrolyser that is designed to: covered by 40 patents Integrate with intermittent ren
Slide 20: Appendix
Appendix NXH:TSXV NXHSF:OTC
Slide 21: Senior Leadership
21 Senior Leadership President & CEO Chief Financial Officer Chair of the Board Board Director CFA, B.Math, B.Econ CPA, CA BSc, BA, MBA M.Eng, MBA Raveel Afzaal Rohan Advani Allan Mackenzie Walter Howard 10+ years capital markets 10+ years diverse financial Owner and principal of Extensive c
Slide 22: Board Contributes Invaluable Leadership Experience
22 Board Contributes Invaluable Leadership Experience Board Director Board Director Board Director BSc, MSc CPA, CA, MAcc, EMBA BA, MBA JP Clausen Susan Uthayakumar Anthony Guglielmin VP of Engineering - Data 25 years experience in Previously SVP and Chief Center Advanced Technology finance an
Slide 23: Alkaline and PEM Industry KPIs
23 Alkaline and PEM Industry KPIs PEM Alkaline State of the art FCH-JU Target State of the art FCH-JU Target Parameter Unit 2020 2024 2030 2020 2024 2030 Electricity Consumption at Nominal Capacity kWh/kg 55 52 50 50 49 48 Capital Cost US$/(kg/d) 2,500 1,800 1,200 1,500 1,200 940 US$/kW 1,100 820 59
Slide 24: Cumulative MWel Capacity
24 Corporate Led Hydrogen Projects Increasing Globally Electrolysis Produced Hydrogen Capacity Increasing Exponentially 3,500 3,109 2,986 3,000 Cumulative MWel Capacity 2,500 2,000 1,465 1,500 1,000 709 500 241 47 57 61 79 99 139 8 19 24 42 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 25: Hydrogen's Supply Needs to be Decarbonized
25 Hydrogen’s Supply Needs to be Decarbonized Natural Gas Water CO2 Emissions Production Cost kg/kg H2 (lifecycle) USD/kg Global Hydrogen Production Scenario Max Min CO2 Tax Max Min Mtpa 11.3-12.1 600 9.2-11.1 8.8-11.1 Electricity Process Emissions 0.8-4.9 GREY 0.6-1.9 0.8-2.1 500 2020 2030 2050 202
Slide 26: Illustrative Excess Solar Energy Capture for H2 Production Scenario Assumptions
26 Illustrative Excess Solar Energy Capture for H2 Production Scenario Assumptions Key Assumptions Solar Energy Large solar installation that sells the first 50% of its name plate capacity through a Power Purchase Agreement Electrolysis capacity to capture the remaining 50% of solar generation
Slide 27: Levelized Cost of Hydrogen ($/kg)
27 Illustrative Excess Solar Energy Capture for H2 Production Scenario Sensitivity Sensitivity Analysis – Impact of Electricity Pricing The lower the electricity price, the better Next Hydrogen’s capital cost advantage becomes The low-capacity factor for capturing excess solar energy results in
Slide 28: The Green Hydrogen Opportunity
28 The Green Hydrogen Opportunity Large Existing Market for Hydrogen – Green To Replace Hydrogen Market Set To Grow Grey 8x 70 million tons per year = US$120 billion annually 545 95% of hydrogen used for industrial purposes is derived from fossil fuels 830 million tons per year CO2 emissions 6
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