Slide 1: Q1 2025 results presentation
Q1 2025 results presentation May 13, 2025
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT FO R PUBLICA TION NO R DISTRIB UTION, IN WHO LE OR IN P ART, DIRE CTLY OR INDIRECTL Y, IN OR INTO AUSTRALIA, CANADA O R THE UNITED S TATES (INCLUDING ITS TERRITORIE S A ND POSSE SSIONS, ANY STATE O F THE UNITED STATED A ND THE DISTRICT O F COLUMBIA ) O R ANY OTHE
Slide 3: Today’s presenters
Today’s presenters: Jacob Clausen Krøvel Wendy Lam Ingar Bergh SVP Investment and Strategy Chief Executive Officer Chief Financial Officer
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Slide 5: Licensor of point source carbon capture technology
Licensor of point source carbon capture technology Offering carbon capture and heat recovery in one system Attractive capture cost Electricity consumption Norway (HQ) 20-60% 0.5-1.5 US Germany Lower than amines1 GJ per tonne of CO 2 captured2 Demonstration hours Industries 18,800 BECCS Cement Refine
Slide 6: Highlights – Q1 2025
Highlights – Q1 2025 Strong pipeline growth – • Moving ahead on one of the world’s largest BECCS2, using Capsol’s technology momentum across industries • 28% revenue growth y-o-y, and >70% mature pipeline growth to 22 mtpa of CO2 capture • Traction in Europe and US across cement, biomass, gas turbin
Slide 7: Capsol’s value creation opportunity
Capsol’s value creation opportunity
Slide 8: Payback on the Capsol license fee: less than one year
Payback on the Capsol license fee: less than one year Proven technology offering lower capture costs Case study: Cement plant, 800 ktpa1 • 20-60% lower capture costs vs amines NOK ~180m • License fee of EUR 10-15 per tonne installed capacity • Case assuming mid-point, EUR 12.5 NOK ~120m • Capsol’s i
Slide 9: Targeting NOK 3bn+ of licensing revenue 2025-2035
Targeting NOK 3bn+ of Total addressable Serviceable addressable Serviceable obtainable licensing revenue 2025-20351 market Post-combustion market Relevant industries market Realistic market CCS share (organic business plan) 6 000 mtpa, operational CCS capacity IEA net ero scenario CAGR: 19% 2030 41%
Slide 10: Maturing carbon markets and policy support driving carbon capture demand
Maturing carbon markets and policy support driving carbon capture demand Strong growth in carbon credits EU CO2 prices expected to triple CCS endorsed across the globe Cumulative CDR purchases, mtpa1 ETS forecast, EUR/mt2 «By supporting cutting-edge technologies like carbon capture and storage (..),
Slide 11: Scalable business model yielding attractive returns
Scalable business model yielding attractive returns Timeline for a typical CCS project and Capsol’s revenue streams Sales Engineering CapsolGo® Licensing PDP/FEED FID Operational engineering studies (optional) agreement plant EUR Technology license fee Future services with potential Feasibility and
Slide 12: Flagship Capsol project breaks ground with FID
Flagship Capsol project breaks ground with FID • FI for one of the world’s largest Bioenergy with carbon capture and storage projects (BECCS) • Capsol’s HPC-based technology chosen for its safety, maturity, energy- and cost-efficiency • Offtake agreements with Microsoft and Frontier and project supp
Slide 13: Proven traction in first waves of CCS demand
Proven traction in first waves of CCS demand New projects in Europe and US added to pipeline – NOK 3bn+ in total licensing revenue potential Mature pipeline up 72% y-o-y and 29% q-o-q Mature pipeline industry split First gas turbines study in Q1 22.2 mt 7.7 17.2 mt Energy-from- 15.0 mt waste/BECCS 1
Slide 14: 13 potential FIDs totaling 6.5mt in 2026
13 potential FIDs totaling 6.5mt in 2026 d s y pa as as Project 1 Bio 0.1 Q1 2026 Contract potential from FIDs in 2026 NOKm Project 2 Bio 0.1 Q1 2026 Project 3 as turbines 1.0 Q2 2026 >900 Project 4 Bio 0.2 Q2 2026 Project Bio 0.8 Q3 2026 Project 6 Bio 0.7 Q3 2026 Unrisked revenue potential from FID
Slide 15: Progressing towards break-even
Progressing towards break-even Illustrative • Higher value engineering work driving revenue increase pre-FIDs Licensing revenue • Can reach break-even next 12 Cash months with current business plan break even PDP/FEED • Highly flexible cost base to be balanced with activity levels Engineering studie
Slide 16: Service to optimize performance in operations
Service to optimize performance in operations: Significant additional value for clients – and Capsol Industry proven business cases Solvent services • Supply, monitoring, and management = uptime increase and opex savings EUR 2+ annual recurring Performance monitoring and optimization revenue pr tonn
Slide 17: Financials
Financials
Slide 18: Revenues driven by paid studies and CapsolGo
Revenues driven by paid studies and CapsolGo® Revenues NOKm 36 25 22 • Revenues of NOK 24.9m in the quarter, up 28% 20 17 compared to Q1 24 • NOK -16.1m pre-tax profit vs. NOK -7.9m in Q1 24 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 • Operating expenses of NOK 38.6m for the quarter • Invested in oppor
Slide 19: Investment program completed; cash flow for Q1 2025
Investment program completed Cash flow for Q1 2025 NOKm 64,4 9,3 1 -1,1 -0,1 • Payment for Stockholm Exergi license fee received 58.5 2,5 in Q1 2025 (booked in Q4 2024) 4,7069 -6,1 • Cash outflow of NOK 7.2m in the quarter – current -16,1 investment program now completed • Cash balance of NOK 58.5m
Slide 20: Concluding remarks and Q&A
Concluding remarks and Q&A
Slide 21: Scaling a competitive, high-margin carbon capture technology platform
Scaling a competitive, high-margin carbon capture technology platform Recent milestones Accelerating growth and value creation Stockholm Exergi FID Recent milestones have strengthened Capsol’s position and • Project moving ahead with Capsol technology broadened growth opportunities • Boosted interes
Slide 22: Scalable platform positioned for profitable growth
Scalable platform positioned for profitable growth Differentiated technology providing 20–60% lower capture costs Pipeline growth converting to high value engineering and licensing revenues Services offering adds recurring income and lifts project value Flexible cost base supports disciplined execut
Slide 23: Appendix
Appendix
Slide 24: Capsol delivers robust carbon capture technology
Capsol delivers robust carbon capture technology Separating CO2 from other gases Burning biomass Capsol for BECCS to produce heat CO2 is compressed (bio-energy carbon capture and storage) and electricity and transported • Ability to capture a wide range of flue gases: 3-30%1 • Top tier capture rate:
Slide 25: Vision and mission
Vision To accelerate the world's transition to a net zero future Mission Deliver energy-efficient and safe carbon capture technologies 26
Slide 26: Illustration of the CapsolEoP process
Illustration of the CapsolEoP® process A full capture solution for CO2-emitting industries Cement, biomass, energy-from-waste (EfW), power generation and large industrials Capture capacity from 100,000+ tonnes CO2/year Stand-alone end-of-pipe (EoP) solution, easy retrofit with parent plant District
Slide 27: Licensing agreements overview
Licensing agreements overview Large European utility Project capture capacity (tonnes) 800,000 550,000 120,000 • Signed: Q3 2022 • Signed: Q4 2023 • Signed: Q1 2024 Key milestones • FID taken Q1 2025 • Expected FID: 2026 • Expected FID: 2026/2027 At a discount to the target range Terms as a result o
Slide 28: Emerging as a preferred technology in key industries
Emerging as a preferred technology in key industries Biomass/energy-from-waste Cement Gas turbines Clean power and new business Meeting new regulations and Decarbonize hard-to-abate Market drivers opportunities in carbon removal staying competitive gas power • Low energy consumption • Lower energy c
Slide 29: Ambition
2030 goals for long-term value capture Ambition 1 Make point source carbon capture accessible and viable for more emitters Top 3 position in target segments: cement, biomass, waste-to-energy and 2 gas power plants Becoming a leading global carbon capture technology company 3 Achieve 5-10% carbon cap
Slide 30: Capsol’s technology can significantly reduce capture cost
Capsol’s technology can significantly reduce capture cost EUR per tonne CO2 captured 187 Transport & Storage CCS project cost (capex + opex) Est. Capsol CCS project costs (capex + opex) 156 114 - 134 123 92 ~20% – 60% 50 - 70 lower costs 64 64 64 Norcem Brevik CCS Ørsted Kalundborg Hub CapsolEoP® (f
Slide 31: Increasing energy savings at higher CO2 concentration
Increasing energy savings at higher CO2 concentration Electricity cost for fully electric capture solutions CO2 concentration in flue gas 5% 10% 15% 20% 25% Typical cement case € 60 € 50 54% reduction € 40 in electricity consumption1 Generic amine process € 30 € 20 EUR 19 saved per tonne CO2 capture
Slide 32: Risks and mitigating actions
Risks and mitigating actions Key risk factors Mitigating actions • Licensing model highly scalable with limited resources • Partnering with big global players to greatly extend reach, capacity and capabilities Small player • A clear strategic roadmap for organic growth and opportunistic approach to
Slide 33: Management
Management Wendy Lam, Chief Executive Officer Cato Christiansen, Chief Technology Officer An extensive career as an executive at Baker Hughes, Rolls-Royce >20 years’ experience from the energy sector. Former Shell, SPT roup and Marine (now Kongsberg Maritime) and GE. the Norwegian Ministry of Petrol
Slide 34: Board
Board Endre Ording Sund, Chair John Arne Ulvan, board member >40 years with management and board positions in the energy, Extensive career as a top executive with strong results from banking and shipping sector. national, international and listed companies. MSc In Chemistry/Chemical Engineering from
Slide 35: Capsol’s International Advisory Board
Capsol’s International Advisory Board Chris Barkey Morgan Bazilian Ian Dunderdale Jing Jin Jan Kielland Stéphanie Saunier Former CTO for Baker Director of the Payne Experienced energy Vice President of Former CEO of Managing Director of Hughes, former Group Institute for Public sector executive Clea
Slide 36: Patent portfolio overview
Patent portfolio overview Patent family 1: Patent family 2: Patent family 3: Patent family 4: Patent family 5: Low emission Combined storage Method and plant for Thermal power plant Purification of flue thermal powerplant solution for natural transport of rich gas with CO2 gas from marine gas and CO
Slide 37: Value chain overview
Value chain overview Carbon capture EPC1 Operations and Liquefaction & Transport Storage technology maintenance intermediate storage • Technology • Client selects • Client selects • Client selects an • Clients selects • Client selects licensed out independent independent independent independent inde
Slide 38: Drammensveien 126, 0277 Oslo, Norway
Drammensveien 126 0277 Oslo Norway Our vision is to accelerate the worlds capsoltechnologies.com transition to a net zero future