Slide 1: Q3 2024 results presentation
Q3 2024 results presentation November 5, 2024
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: Ingar Bergh Wendy Lam Chief Financial Officer Philipp Staggat Chief Executive Officer Chief Product Officer
Slide 4: 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 20-60% Norway (HQ) Lower than amines1 0.5-1.5 Germany GJ per ton of CO2 captured2 US Years of R&D Hours in operation 15+ ~15,000 ~EUR 50m investe
Slide 5: Highlights – Q3 2024
Highlights – Q3 2024 Steady demand growth • Revenues up 80% to NOK 21.6 million, compared to Q3 2023. • Project pipeline up ~60% to 15 million tons CO 2 last 12 months. • Awarded feasibility study and two CapsolGo® campaigns for cement plants in Q3 2024. Lower cost solution yields • Progress driven
Slide 6: Additional incentives derisking the market opportunity
Additional incentives derisking the market opportunity CO 2 captured per year to reach net-zero1 Recent announcements 8,000 HyNet and the East Coast Cluster, EUR 7,000 Energy Industry Power Removal (BECCS & DAC) with funding supporting both CCS and blue hydrogen production. 26.6bn Million tons captu
Slide 7: Superior technology platform to decarbonize industry
Superior technology platform to decarbonize industry CapsolEoP® CapsolGT® end-of-pipe Low carbon power generation CapsolGo® demo units Industries Industries Biomass, Energy- Cement Other Utilities Natural gas transportation Data centers Pulp & paper from-waste and lime industries Technology platform
Slide 8: Scalable business model yielding attractive returns
Scalable business model yielding attractive returns Low capital intensity Zero capex risk 40-60% pre-tax No capex required to drive growth – Technology license includes process Based on ~100% margin on licensing, product development, standardization design package and carries no ~50% margin on demon
Slide 9: Operational review
Operational review
Slide 10: Strong demand growth
Strong demand growth 15mt mature pipeline representing EUR >100m pre-tax profit potential +58% 16 14 Engineering studies 12 20 projects, 10.4 mt Million tons CO2 10 8 CapsolGo® demonstration 6 8 projects, 3.25 mt 4 2 License agreements 3 projects, 1.35 mt 0 Q3 2023 Q4 2023 Q1 2023 Q2 2024 Q3 2024 En
Slide 11: Emerging as a preferred technology in target industries
Emerging as a preferred technology in target 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 ener
Slide 12: Continuing to demonstrate the technology for customers
Continuing to demonstrate the technology for customers – two campaigns starting in Q4 2024 Energy-from-waste: Mälarenergi’s plant in Sweden1 Cement: Brocēni in Latvia and Akmenės in Lithuania 400,000 1.5m tons CO2 in full- tons CO2 in full- scale potential scale potential Q4 2024 Q4 2024 start-up of
Slide 13: Capsol's first licensing agreement nearing FID
Capsol’s first licensing agreement nearing FID ✓ License agreement with Capsol Technologies ✓ 180 million EUR awarded by EU ✓ Environmental permitting completed ✓ Sweden, Norway, Denmark storage agreement signed between governments ✓ World's largest agreement with Microsoft for carbon removal ✓ Agre
Slide 14: 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 15: Deep-dive: Selected business cases that highlight Capsol's technology advantages
Deep-dive: Selected business cases that highlight Capsol’s technology advantages
Slide 16: Introducing Capsol
: in | g j technologies il Al Carbon Capture | i CO, removed ; ' i (aipesen CO, . i | t il ==" J a it ‘a = ; ‘ie eae F ae Introducing eapsol
Slide 17: Technical advantages of CapsolEoP driving economics
Technical advantages of CapsolEoP® driving economics Inherent heat recovery Additional district Low energy Standalone unit Safe and cost-effective heating generation consumption and simplifies integration handling of solvent fully electric 18
Slide 18: Capsol's technology can significantly reduce capture cost
Capsol’s technology can significantly reduce capture cost EUR per ton CO 2 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® (fi
Slide 19: 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 ton CO2 captured1
Slide 20: Capsol energy savings turning cement CCS profitable
Capsol energy savings turning cement CCS profitable Making more projects viable, contributing to accelerated path to decarbonization EUR per ton CO2 captured • Energy use typically 50% lower than traditional amine process. -EUR 48 Profit / margin 187 • Stand-alone CCS unit + easy integration EUR 5 -
Slide 21: Heat generation boosting EfW CCS projects' returns
Heat generation boosting EfW CCS projects’ returns CapsolEoP® adresses customer needs to provide additional revenue streams EUR per ton CO2 captured Margin EUR 81 - 105 • CapsolEoP® enables additional EUR 13 215 revenue of EUR 46 per ton CO₂ CapsolEoP® captured 46 heat revenue 169 156 CDR 114 -134 •
Slide 22: CapsolGT target segments
CapsolGT® target segments Data centers – Reliable electricity production. Electricity and heat production – Affordable clean power. Midstream gas transportation – Decarbonizing infrastructure. Industrial applications – Brownfield open cycle turbines. Vast market – Our industrial partners’ existing f
Slide 23: Powering datacenters with CapsolGT
Powering datacenters with CapsolGT® Reliable low carbon electricity generation from natural gas Levelized cost of electricity per MWh 2 Willingness to pay ~ USD 115 108 ~ USD 50 • AI driving data centers demand for green electricity. margin 74 • Buyers willing to pay USD 115 1 per MWh for low emissi
Slide 24: Financials
Financials
Slide 25: Investing to leverage technology leadership
Investing to leverage technology leadership • NOK 109 million raised in H1 2024 being deployed in H1 equity raises Revenues funding new products, new markets and new revenue deployed to growth operational costs streams. opportunities • Revenues funding cost of operations as we move towards profitabl
Slide 26: Q3 cash flow – CapsolGo capex close to completion
Q3 cash flow – CapsolGo® capex close to completion Cash flow for Q3 2024 (mNOK) 93 6 2 Drivers for differences between P&L and CF: 0 2 1 66 • Investments of NOK 12.8 million, of which ~95% into 13 CapsolGo® program. • NOK 10 million of CapsolGo® capex remaining - improving cash flow going forward. •
Slide 27: Fully funded on current business plan
Fully funded on current business plan Contracted revenue and committed costs next 12m (mNOK) 87 10 26 • Fully funded based on contracted revenue. • Considerable revenue upside from engineering, CapsolGo® utilization1 and licensing. 66 30 61 74 • Further investments in growth to be balanced with 22 r
Slide 28: Illustrative revenue and profit potential towards 2030
Illustrative revenue and profit potential towards 2030 Target for emissions Required CCS projects by 2030 reductions in 20301 • Infrastructure Investment and Jobs Act from 2021 includes USD 50-52% 12bn for CCS projects over five years • IRA 2 increased tax credit for carbon sequestration to USD 85/t
Slide 29: Concluding remarks and Q&A
Concluding remarks and Q&A
Slide 30: Milestones expected next 6-12 months
Milestones expected next 6-12 months De-risking the path towards long-term goals and revenue potential Bringing New Engineering Stockholm New Expanding CapsolGT® CapsolGo® contract Exergi FID1 licensing partnerships to market deployments awards agreements Generating high Growing project Entering nex
Slide 31: Summary
Summary Capsol has a differentiated and highly competitive technology platform …and a scalable business model set to yield attractive returns Revenues +80% and mature pipeline +60% y-o-y to 15 million tons of CO 2 Progress driven by increasingly strong Capsol carbon capture business case Positioned
Slide 32: Appendix
Appendix
Slide 33: Enabling a sustainable future
Vision To accelerate the world's transition to a net zero future Enabling a sustainable future Mission Deliver energy-efficient and safe carbon capture technologies 34
Slide 34: A portfolio of technologies to meet large emitters' needs
A portfolio of technologies to meet large emitters’ needs CapsolGo® CapsolEoP® CapsolGT® A complete carbon capture solution for Mobile demonstration unit with A complete carbon capture solution for Description large-scale gas power and industrial all-inclusive service package large-scale CO2-emitter
Slide 35: 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+ tons CO 2/year Stand-alone end-of-pipe (EoP) solution, easy retrofit with parent plant District h
Slide 36: Delivering performance beyond CCS industry standards
Delivering performance beyond CCS industry standards Ability to capture a Highly competitive Top-tier Purity that meets range of flue gases energy efficiency capture rate industry requirements CO2 concentration Energy use Capture rate CO2 purity 3-30% 0.5-1.5 GJ/mt1 90-95% +99% Proven technology wit
Slide 37: Licensing agreements overview
Licensing agreements overview Large European utility Project capture capacity (tons) 800,000 550,000 120,000 • Signed: Q3 2022 • Signed: Q4 2023 • Signed: Q1 2024 Key milestones • Expected FID: Q4 2024 • Expected FID: 2026 • Expected FID: 2026/2027 At a discount to the target range as a Within the n
Slide 38: 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 39: Partnering with CCS industry pioneers for global scaling
Partnering with CCS industry pioneers for global scaling Partnerships aimed at reducing carbon capture cost and capturing market share Joint R&D efforts to Develop and deliver Collaboration to Preferred equipment Large-scale CO2 Preferred engineering engineer and test standardised carbon explore the
Slide 40: 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 41: Management
Management Wendy Lam, Chief Executive Officer Cato Christiansen, Chief Technology Officer An extensive career as an executive at Baker Hughes, Rolls- >20 years’ experience from the energy sector. Former Shell, SPT roup Royce Marine (now Kongsberg Maritime) and GE. MBA from and the Norwegian Ministry
Slide 42: 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. M.Sc. In Chemistry/Chemical Engineering fr
Slide 43: 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 44: 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 • Clients selects • Client selects licensed out independent independent independent independent indepen
Slide 45: 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