Gelion (LSE:GELN) — Investor Presentation - Admission to trading on AIM

0:01 Good morning, ladies and gentlemen. Welcome to the GELN PLC investor presentation following the admission to trading on AIM. Throughout this presentation, investors will be in listen only mode. Questions were encouraged and can be submitted any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. These will be available via investor meet dash investor meet company dashboard. You'll be notified once they're ready for your review. I'd also like to remind you this presentation is being recorded. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Andrew Grimes, CEO Amit Gupta, CFO Stuart Rayner, chief commercial director professor Thomas Mashmeyer, founder of GELION PLC.

0:49 Well, thank you very much. Good morning all, and thank you for joining us today. The world economy has started on its exciting transformation the era of fossil fuels to that of renewable energy.

1:02 The energy transition doesn't just make sense for the health and welfare of the planet and our population. It also makes sound financial sense. GELION is thrilled to be playing its part in assisting in this transformation and to fulfill our mission to supply green clean energy and water for all. We started GELION with the inspiring idea that the the stationary storage of renewable energy could be safer, cheaper, and more robust than current technologies. Our non flow zinc bromide batteries will offer industry the opportunity to embrace renewable energy with confidence. Science is a wonderful inspiration for our company. Tapping into the deep wells of knowledge and fundamentals of electricity dating back to Maxwell and even Faraday has allowed us to reimagine battery technology for the twenty first century.

1:59 In 2015, we founded GELION as a spinner from the University of Sydney. Since then, it's been amazing to see our fundamental research transition from the lab to start up and now to a global company, listing in London in just six years. GELION has ambitions to be a global energy storage supplier, determined to meet the growing needs of the renewable energy market. We offer investors the opportunity to access the Keystone energy storage sector, which is essential to transitioning economies away from fossil fuels and unleashing the full potential of sources of renewable energy such as wind and solar.

2:46 GELION zinc bromide batteries use materials that are abundant, inexpensive, recyclable, and abuse tolerant. This mental and commercial advantages over lead acid and lithium ion batteries for stationary energy storage. Our batteries are also more than 90% recyclable and have a low environmental impact, providing a very strong environmental, social, and governments ESG investment case and meeting several of the United Nations 17 sustainable development goals. We are absolutely thrilled to be joining the AIM investment community and will be using this wonderful opportunity to power the full commercialization of our zinc bromide battery technologies and prepare our mobile energy division for market.

3:44 The world is experiencing a period of unprecedented global demand renewable energy storage and battery technologies. I believe the timing of our IPO could not have been better. So with that introduction, I'd like to go through the slide deck that we used in part to raise the the funds necessary for today's IPO. Our mission is really to provide global energy storage solutions that are able to interface with the ESG goals as well as the sustainability development goals. And we are particularly well suited to the combinations of battery, solar, and of that application such as standalone power or agriculture applications, water shifting, irrigation, or the dewatering of mines, which is a huge area of growth, and, of course, also firming solar and wind energy supplies.

4:46 Next slide. So the company was formed to really work with the advantages of zinc bromide chemistry, and these advantages are high temperature tolerance. It doesn't catch fire. It's charged or state intolerant with a zero state of charge or a 100% state of charge. The battery life is not affected. That is a really powerful combination of characteristics, but it has been implemented in a way that it is a flow system. A flow system is complicated. It's expensive. It's more of a chemical plant than a battery that is more of a conventional design. So what I have been able to do with the team and and July now commercializing is the is is the the design of a solid block of energy. No moving parts just like for that acid batteries.

5:42 And the gels that we have invented are able to basically do the job that is being attempted to be done with the flow environment in this in this passive form of energy. But the gel on the molecular side is not passive. It is a self assembled three-dimensional system that responds dynamically to the charging and discharging events. What we have been able to do is make all of this very homogeneous, and that is the key for the battery to be functioning the way it does. Next slide, please. In terms of who we are, I'm a bit of a serial offender when it comes to startups. I've done a few, and the point of telling you that is that just this is not the first relayer of myself or the team, there are companies looking to go global in biomass upgrading with partners Shell and Canfor and end of life recycling partners at Dow and Mitsubishi Chemicals, KBR, etcetera. So these are companies with world scale ambition that are that are partnered by the biggest strategic investors in the area of activity.

6:57 My personal involvement and that of the rest of the team now is fully focused on getting GELION to that level as well. So our aim is to partner with the world's biggest lead asset manufacturers and

7:10 battery manufacturers in general to lift GELN to that next level, and the AIM IPO has given us the ammunition to be able to do that. Steve Mahn is our chairman. He is a very well respected and experienced energy executive in The UK. One of his companies has got £300,000,000 under management for solar projects. He's also CEO of the plastics upgrading company, Mira. So good ideas we keep in the family as it were. His His experience has been very, useful to be for us to be steered in a good direction of company growth. We also have two new independent nonexecutive directors, Michael Davy, former director of the London Stock Exchange, very pleased to have him on board to guide us further, and Joyce and Morton, a director of a number of very significant companies in Australia, amongst them Snowy Hydro, a two gigawatt hour

8:13 pumped hydro energy storage systems, so the biggest in Australia. Also director of the submarine company that is building the submarines for for the Australian Army, etcetera, etcetera. Really experienced, Ned's, and and we're very delighted to have them on board. And I hand over to Andrew Grimes, the CEO. Thanks very much, Thomas, and good morning, everybody, and thank you for your time today. My background is in chemical engineering. I, like a lot of engineers, spent my early days working at various chemical plants around the world. I did a stint in Australia, Southeast Asia, and spent some time here in The UK with Procter and Gamble. And my my job before joining GELION was heading up an international company supplying specialty chemicals throughout the world for the airline. So we had a very great market share supplying across probably a 100 different countries.

9:06 But but after I've done that job for about thirteen years and really felt that I wanted to do something different. And, you know, I had some concerns about what was happening in the world and and enrolled in a master's to to study renewables and sustainability at Sydney University. It was there that I met Thomas, and and we got talking about what he was doing with GELINE. I had the opportunity to meet the team and see the, you know, the fantastic work that had been done already in such a very short space of time. And I and I came on board the middle of last year. I have to say it's been an amazing ride, and, obviously, today is a combination of of a lot of hard work that's being done. But really, really happy to be here, and I'm excited for for what the company's got happening in the future. Amit. Thank you, Andrew. Good morning, everyone. So my background is largely professional services. So I started my career at KPMG, and then just prior to joining GELN, I was a director in Deloitte Financial Advisory Practice in Sydney. So I was leading the IPO practice for Deloitte in Sydney over the last four years. That's all I did. Learned the ropes around how how not just to how to make

10:08 a business successful in listing, but post listing as well. How do you manage investor expectations in terms of meeting budgets and forecast and things like that. So I would I was at that stage where I was thinking about what's next for me in my career, and then this opportunity came through. Met Andrew Thomas was really impressed with what they were they were doing as well as what the business was doing. So definitely very, very excited to be on board. I've been with the business for a few months now and such such a big milestone for us now having been listed. So thank you for all your investment and time to support us, and we'll hopefully do well for everyone. Thank you, Stuart. Thanks, Adam. Good morning, everyone. Stuart Rainer. I head up the commercialization for GELNINE. Been with business for four years. Prior to GELNINE, my first career was in IT. So I worked in sales and marketing for companies like IBM and some other large American software companies.

10:58 After doing that for about a dozen years, I wanted to put my commercialization skills into the environmental to make an impact. I met Thomas. We actually worked together for about seven years on another technology that's been super successful. Now four years into July, it's a great time to be with business. We've got a lot of the, you know, the hard r and d behind us. We're getting products out into the market. Now with the funding that we've raised through the listing, we'll really be able to accelerate our growth into key markets. Andrew?

11:32 Okay. We look. Today is a is an enormously important day and is is the the culmination of twelve months' hard work. We we've we've raised 22,000,000 on on the AIM and are looking to to grow the business and take us through to an EBITDA breakeven point in 2024. And to give you a a broad picture picture of of the company and and our divisions and what we're doing before we jump into some more detail later, the company was founded around the zinc bromide energy storage that that Thomas mentioned earlier that we spun out of Sydney University. And that that's focused on stationary energy storage. So what what we mean by that, basically, storage that doesn't move. So anything from something that might be in your house all the way up to very, very large installation supporting solar and wind farms.

12:19 And this is an enormously strong theme. The the the forecasts are for well, the current state of growth is around 25% compound annual growth rates. And every time these forecasts get put out, they seem to restate what they did last time upwards. It's a incredibly strong theme. And with COP twenty six in Glasgow, you know, just finished, the focus has never been stronger on this. So we have a product with a unique chemistry that brings some unique advantages over existing technology, which is mainly lithium ion and lead acid. Our products are safe. They're robust. They you can discharge them to zero without any problems, and they can also be made very, very cost effectively using lead acid manufacturing existing factories. And and the reason for that is that we've designed our product to look and be assembled very, very similar to a lead acid battery with vertical parallel plates. And that allows us to tap into that enormous infrastructure and ecosystem of lead acid manufacturing that is around the world. And a lot of those companies are looking for the next big thing as they see their market share being diminished by by lithium ion. So that's the first part, the stationary energy storage. We also have a division focused on mobile energy, primarily lithium batteries. And look. If the stationary energy storage market is is a strong theme, the mobile energy is is even stronger. I'm sure I don't have to tell you all about that.

13:42 And what we're doing here is we're developing additives to improve the safety and the performance of existing lithium based technologies. The first of those is is supplying into the current lithium ion battery ecosystem. You may not be aware, but the lithium ion batteries that are in your laptops or in your phones or in your cars, that technology is being gradually replaced. And by the end of the decade, companies like Tesla and Panasonic have said that they're targeting to to move to a much higher energy density form, advanced form, using a special product to facilitate that silicon nanoparticles. Now these silicon nanoparticles, we didn't invent them. They're they're an existing market, but they're very, very difficult to make.

14:29 They're very, very difficult to make them well. And as a result, they're extremely expensive. So in this part of our business, we have developed a manufacturing technique that is an order of magnitude cheaper than than current current companies

14:43 manufacturing this. What our plan there is we will be proving the performance of our particles in small demonstration cells the size of your mobile phone and then going out and partnering with the existing users of these to to you know, who who are currently buying them in greater and greater quantities. So that's the silicon nanoparticles for advanced lithium ion. The second part of our performance additives is is supplying into the lithium sulfur batteries. Now lithium sulfur batteries, you don't hear as much about them. There it's a technology that's promised a lot and really as yet hasn't been able to deliver on that promise. That lithium sulfur batteries are up to three times as energy dense as lithium ion. So what that means is per kilo of batteries, you can get three times as long range in your car. And and what it also opens the possibility of e aviation, and aviation has always been one of the hardest nuts to crack in terms of decarbonization.

15:38 So lithium sulfur batteries have always had that promise, but the problem with lithium sulfur batteries is until now, nobody can get them to last beyond a 100, maybe a 150 cycles before the internal degradation means that you basically have to throw the battery away. And that really limits their application to only ultra niche areas. What Thomas and his team inside Sydney University have done is come up with an additive that can increase that cycle life up to to up to 500. And when you're talking 500, you've all of a sudden, you've got a commercial product and something that can be marketed. That technology has been taken out of Sydney University and is now part of the GELION proprietary technology. So we we we have that IP ourselves. Same sort of business model was for the for the silicon nanoparticles.

16:25 What we're looking to do is prove up the performance in pouch cells and then go and partner with companies that are investing billions of dollars at the moment in lithium sulphur development. Thanks, Stuart. In terms of the commercialization milestones, we put this slide together at the start of 2021 and set ourselves the objectives that we wanted to achieve throughout this year and and into the future. On the zinc bromide stationary storage, that was all around getting the agreements in place with the lead acid manufacturing companies and starting to to build up pilot manufacturing. It was also around getting some deployments out into the field to prove that our batteries really work in real life. That's all being done. On the performance additive side, it was developing the team, getting the company established, and and starting to get results, and that's all being done. The last the last target of 2021, really happy to say as of three hours ago, looking at the clock, we we've achieved.

17:23 And so, you know, in a in a time of COVID disruption and and a lot going on, really, really proud of the team and what we've managed to to achieve, this year. As we look as we lift our eyes to the horizon to 2022, it's all about scaling up further and man and upscaling the manufacturing on the zinc bromide using our Australian and Indian partners. And on the performance additives, as I mentioned, it's about getting getting approvals for those with with the key manufacturers and users. Taking us through to 2023 where we see our first commercial sales and onto 2024, as I said, we're we're looking to an EBITDA breakeven point.

18:05 We often get asked from our our investors or potential investors about our IP and and, you know, because it we are a technology company. It's a really important part of of who we are. All of the three lines of development that I outlined earlier are covered by patents in all of the important areas. So it's an area we take very, very, very, very carefully, and and it's it's it's something you know, the admission document, which some of you may have seen, has a very large report on our status there. But suffice to say, it's something that we take seriously and have covered very, very well. I'll pass over to Stuart, who'll tell you a little bit more about the zinc bromide stationary energy storage. Right. Thanks, Andrew. So I'll focus on the first product that we're bringing to market. And, you know, as as the globe is transitioning to renewables, battery storage really underpins that transition.

18:57 And in order to get the proliferation of batteries out in a much bigger way so we can green the planet in a faster way, we really need to do three key things. We need to get the cost of the batteries down. We need those batteries to be safer and more sustainable and recycled. If you think about GELN, our mandate since day one has been to follow that path, and that's exactly what we're delivering. So we're bringing to market a low cost, safe, recycled battery. It's an alternative to the main products that are out there at the moment being lithium ion based for grid connect and lead acid for off grid batteries. There's a number of key advantages over those techs that we'll talk to you about a little bit more in this presentation. So in terms of the if you look at key components of our batteries, so we're a zinc bromide battery.

19:44 So zinc is a very important aspect of our electrolyte, and zinc is actually 20 times more abundant than lithium. So from that perspective, we don't envisage any supply issues and our ability to get orders through to customers. We think that will be pretty strong. We also have low cost inputs. So if you look at the difference in cost and pricing, zinc versus lithium hydroxide, you'll see there 3,000 versus 17,000. So that plays into Giant's favor very strongly. These numbers were just taken from the, from the metals exchange in September this year. We also make sure that we don't have any conflict minerals in our products. And when we talk about conflict minerals, if you take, for example, lithium ion, lithium NMC technology, the c stands for cobalt.

20:32 Now cobalt is also very expensive, but, unfortunately, it's mined in The Congo using child labor. Now to line, make sure that we don't have any conflict minerals in our products, and we're very proud about that. We've also looked at the levelized cost of energy stored. So what what that is is it's a method of being able to evaluate and compare our technologies with other technologies for specific applications. So it comes down to the cost of the energy over the lifetime of the battery. If we look at the numbers for lithium ion and also for lead acid, we can get a better outcome, for example, against lithium ion even at low production levels at only a 100 megawatt hours per annum. Our go to market is really exciting.

21:18 Like, before when when we kicked off the company, we we looked at the market, and we looked at some other technologies that might have developed a good new tech. But unfortunately, their manufacturing capital cost requirements were really prohibitive, and they didn't have enough revenue to support that amount of capital outlay with bust. So we wanted to learn from that experience, make sure we didn't make those same errors. So as Thomas and Andrew have mentioned, our non flow battery is shaped very much like a lead acid battery. Therefore, we can partner with existing manufacturing infrastructure. The win for the lead acid battery companies is they're competing against lithium ion, but they need a better tech to make that competition. And that's why they've chosen July. So we've already kicked off and established two relationships in terms of manufacturing partners for lead acid, HBO and Battery Energy.

22:11 HBO in India, they're the third largest battery manufacturer for lead acid in India. They are a fantastic partner, they've been in business for forty years and listed on the stock market over in India. They make quality products for many different companies and sectors including batteries for Airbus. We've got a manufacturing distribution agreement with HBL for India, they can also produce products for us under contract manufacture for other jurisdictions. Battery energy. Now if you look at the Australian market, in general, Australian Australian markets in general, we represent about 1%. But when it comes to station energy storage and batteries, we are 8%. So it's a pretty big market in Australia. Therefore, we wanted to have a really strong manufacturing distribution partner locally in Australia.

23:00 And that company is Battery Energy. They've been around for thirty years. They're a high quality company with blue chip customers. They manufacture lead acid batteries. They also do systems integration with solar and other systems. And they're our partner for Australia and New Zealand to roll out our products. We'll be able to sell to their existing customer base, also jointly get together and bring on new customers. So it's really about quick wins for us and speed to market, teaming up with battery energy. If you look at the CapEx side of things, so you can see here on the bottom left hand corner, we've done the numbers with HDL in terms of the amount of capital that we need to invest to get a gigawatt hour production per annum. And you can see there a comparison against lithium ion. So we're at 16,000,000 CapEx versus lithium ion greenfield for the same production.

23:49 I need a 132,000,000 as an estimate. So that's, you know, that helps you understand why we can be competitive even at lower manufacturing rates. We've also completed 400 megawatt hours of off take MOUs that are signed in the market. This represents over $100,000,000 in US of revenue opportunity for us. We'll be converting those MOUs into off take agreements over the next twelve to twenty four months.

24:18 How big is the market? Stationary energy storage, the market's growing at 24% per annum. The stats here in the graph are from Wood Mackenzie, specialist in the station energy storage market. You can see here in teal the various different battery storage applications that are out there, and heading to a 2025 market size of 90,000,000,000. Wood Mackenzie also estimate that the size of market in terms of gigawatt hours by 2030 will be about seven seven hundred, seven hundred and fifty gigawatt hours, and that's for grid connect battery systems only. What's really interesting is in the green box there, can see Faraday Research

24:56 extrapolations from their estimates is also 750 gigawatt hours of market by 2030. So that's fantastic for GELN because it doubles the opportunity for us because our batteries operate in off grid and reconnect situations.

25:13 Competitive advantages, we've really just summarized into four simple areas, and we bring into market a stationary energy storage product that's an energy energy shifting battery. So very good for daily cycling, longer duration, and we've spoken about the low cost inputs, but also one of the key things that gives us a very good score in the levelized cost of energy stored is the lifetime of the battery. So if you compare us with the other techs, lead acid batteries tend to last between, say, 500 cycles, perhaps 1,200 cycles for the advanced lead acid. Lithium ion batteries, 1,500 cycles to maybe a bit over 3,000 cycles depending on which applications and how they're being run. For GELN, we've we've tested our products and we were at 4,200 cycles for the wind farm scenario testing, and our design aims to get to over 5,500 cycles. So our batteries last a long time, it gives us great score for realized cost of energy, and a great outcome for our customers.

26:14 When we talk to the market, the second most important area in terms of buying criteria, and sometimes the first sometimes the first is safety. So we have a lot of market proponents coming to July purely on the safety of our batteries alone. For example, companies like mining organizations or oil and gas where safety is really critical and they're trying to green up their operations, they wanna make sure they've got very safe batteries that can't catch fire and won't explode. Even property companies, property developers who are looking to put bigger batteries connecting to the solar on their rooftops and put the batteries down into car parks, they're coming to us because they're really concerned about putting that amount of energy into containerized systems and having around car parks where a lot of people go. So they're very keen on GELN safety features.

27:01 So why is the battery so safe? The electrolyte, zinc bromide electrolyte, actually operates like a fire retardant. It doesn't catch fire. There's no thermal runaway and no cause for explosion. It also operates at very high temperatures without needing air conditioning systems and other bolt on systems that our competitors require, which increases their costs. So we've done some testing in terms of safety and robustness of our batteries. So what you can see in here in the picture, this is a this is one of our battery

27:34 cells. Looks just like a lead acid battery. It's a vertical parallel plate battery in a plastic casing with zinc bromide non flow technology. And you can see there it's powering the light. What we did to jazz things up was we heat it we put the the battery on a hot plate, and we heat it up up to 600 degrees Celsius. Now if you did that to a lithium ion battery, that would have caught fire and exploded, but not July. And you can see there after ten minutes, some smoke, light still powered, no flames. Half an hour later, it's still operating. There's a slight leaning tower of Pisa effect on the batteries. The casing starts to melt, but essentially still no flames, no smoke, and the light's still operating. Came back the next day, charged the battery, and it operated again. So we scored very, well in safety and robustness.

28:25 Little comparison here. I've just taken a photo out of public domain in terms of one of the many fires that we do continually seem to get reported on lithium ion batteries. This one here, this is a 450 megawatt hour battery, so a large one located in Victoria, about a thousand k's from our offices in Sydney. You can see here, unfortunately, this one's caught fire, and they hadn't actually even operated the battery. So, unfortunately, lithium ion does have this propensity to catch fire, and it burned for three days. Luckily, no one will turn hurt in the fire, and the recommendation from the vendor was basically just pull everything around and let it burn itself out so the fire won't spread. Now from our perspective, we don't think they're very proactive technology in terms of fire safety. So with GELINE, that's it growing electrolyte, doesn't catch fire very safe.

29:22 Coming back on the last couple of competitive advantages. So recyclability, this is very high on the customers' agendas. And if you saw that, you know, if you recall that pictures you saw, many many containerized lithium ion batteries, after five to seven years of their battery life, those batteries, what happens to them? What happens to the recyclability? Are they just gonna end up in the tub? So lithium ion batteries globally are recycled two to 5%, which is a very low number. And the reason for that is they're spiral wound cells, so it's very difficult to get into the components and recycle. Conversely, lead acid batteries, they're recycled about 95%. And because GELION's batteries in a very similar format as lead acid batteries, we score very well on sustainability recyclability.

30:12 The plastic case can be fully recycled. The electrodes in vertical parallel format can be got to recycle, and the copper in the header area also recycle. We've touched on the robust nature of their batteries, but also one other point, with GELION's batteries, you can use a 100% of the nameplate energy that's in the batteries. Lithium ion tends to be 80 to 90%, and lead acid 50 to 70%. So it's another advantage for GELINE in terms of the amount of energy you can use for the battery.

30:43 Now this slide here really pays a little bit of homage to the founder, to Thomas Meschwam. Thomas, you you may you may know he's he's rated in the top 15 chemists globally and many many awards over time. And one that I just mentioned to you is last year, he won the Australian prime minister's top award for technology innovation across any technology platform. He won that for GELION and also another startup tech that he's working on. So the great thing, you know, the great that's awesome for Thomas, but fantastic for GELION in terms

31:16 of Thomas' reputation, gives us global credibility, and a lot of marketing. We get a lot of interest coming to GELION from, Thomas' reputation. Now I'd just like to take you on a bit of a journey in terms of, GELION's technology evolution over time. And to give you a bit of a working framework, when a professor comes up with a fantastic new idea for a new battery tech through to commercialization success if they make it, that's about a ten, twelve year journey normally. Now July, we fast track that by

31:46 40%. The reasons are we're leveraging the proven zinc bromide electrolyte that's being used in flow batteries. We we add some components to it to make it work with a non flow batteries of ours, but that's been able to help us fast track. We also leverage the lead acid battery manufacturing infrastructure that I've mentioned already, so we can get product out to market quicker. And we've also got a fantastic technical team. We've been working under Thomas'

32:14 oversight over the last few years, getting our batteries together and into the market ready. A great team full of experts from a global perspective operating out of our Sydney laboratories and offices. So the technology evolution, if you if you have a look there, we kicked off the business in 2016, and you can see the early stage research and development. We had a round trip efficiency of 65%, which means if you put a 100 units of energy into the battery, you get 65 units out. And for early stage r and d, that's a great result. We're able to get our

32:48 initial funding and get on the journey. Then you can see over time, the format of the battery has changed to the point it is today, which is vertical parallel plate looking like a lead acid ready for mass manufacture. Our round trip efficiency over that time has also grown. You can see 87%. We're we're actually testing now at 9092%. So that blitzes us against lead acid, and it puts us really competitive against lithium ion for round trip efficiency, which is a really important metric for battery performance. We've recently put put some product into market. We wanted to demonstrate some of our Horizon one off grid product and this uses batteries, solar, and in some instances, we're doing irrigation for farmers.

33:35 So effectively, running irrigation pumping systems at night using our battery tech that enables less evaporation from the irrigation and better farming efficiencies. We've also done

33:49 demonstrations in terms of water desalination. So clearing up brackish water for rural communities in Australia and turning into great drinkable water for communities and livestock. This is obviously a fantastic application that can go global.

34:05 Now our commercialization pathway, we've summarized it into two key horizons. Horizon one, which is kicking off in the back end of twenty twenty two, this is off grid focus, it's batteries of the size around 10 kilowatt hours to one megawatt hour which might be up to about a shipping container or two per application, and I'll just touch on a couple of these. The standalone power systems, these are a combination of

34:31 solar panels, batteries that may be a 100, you know, 50 to a couple 100 kilowatt hours, and a small diesel genset. Now over in Victoria, in Australia, the network operators, they're looking to reduce costs in poles and wire and replace them with stand alone power systems. And in Western Australia alone, there's gonna be 5,000 of these rolled out in the next few years, and in Queensland, 6,000. So it's a very big opportunity, and it really suits a battery like ours from high cycle life and ability to run-in hot temperatures very robust. I'll touch on the mining scenario. Lots of mining happens in Australia and globally. We try to do our best to help, you know, the the miners green their operations and be sustainable as possible. What our goal is is to remove all the diesel gensets that are used in mining and use solar and batteries and GELION's batteries. So in this instance, it's getting our batteries connected with solar using electric pumps to pump up the the water and then desalinate that rather than just remove it. So add add value to it and provide that to communities. This really resonates with miners as they're trying to become more sustainable and we'll be demonstrating those applications later on next year.

35:45 Horizon two for July is really about the big scale up. Our batteries come in a format that you can just put into series and parallel and increase the capacity for high voltage. So the applications will be working on there at commercial industrial, solar farms, wind farms, and utility grid. These batteries will be, you know, from a 100 kilowatt hours up to hundreds of megawatt hours in scale. And one of the areas I draw your attention to, left hand corner, where we're starting to get a lot of the market knocking on our door very interested, is in green hydrogen production. So if you don't know green hydrogen production, use an electrolyzer to create hydrogen, and that's powered by renewable energy during the day. And then in order to get the electrolyzer running twenty four seven to make sure you can get optimum hydrogen produced, you you run it by batteries in the evening. Now if you're gonna be producing hydrogen in the evenings, what do you want?

36:42 Very safe batteries. So, hence, people come in July for this application. I'll just wrap up on some of our key alliances. From a technology point of view, ICL, Israel Chemical Laboratories, they provide us with our zinc bromide electrolyte. It's if you didn't know, zinc bromide is also used as a drilling fluid, so it's a commodity item and in vast supply. University of Sydney, we which is where GELION was born from, we have r and d contracts with the uni and continue to work with them ongoing, which is a fantastic relationship. The off take MOUs I've mentioned, 400 megawatt hours, over a $100,000,000 worth of revenues coming our way over the next two years and they're across multiple applications.

37:30 So Horizon one off grid and also Horizon two larger scale solar bigger batteries. And finally, from a global perspective, in addition to the MOUs, last year, one of the world's largest renewable energy companies headquartered in Europe went to market to do a full evaluation of brand new battery tech that were out of the market because they wanted to make sure they had the best batteries to provide their customers. And they provide solar farms, wind farms, big battery projects globally. After about a six month process, tendering process, GELN had been successful and we've been selected, And we'll be providing them with test product next year ahead of commercial offtake. So it's really, really fantastic for GELLINE, and we'll be providing more detail on that announcement in the near future.

38:17 I'll now hand back to Thomas who will talk you through the performance additives section. Yeah. Thank you very much. So we have another leg to our business, and that is to help lithium battery technologies. And our additives are able to do two things, to improve the energy density and also enhance the lifetime of of the batteries. The market is absolutely going exponential in that space, and we believe we can make a very substantial contribution with these additives. From one of the additives for advanced lithium ion technology, silicon nanoparticles, depending who one was talking to, Just the additive market by the end of the decade is viewed to be between 18 to $47,000,000,000 US. So just that's just the additive market.

39:14 So we believe we can interact with that demand very well because of our technology breakthroughs. Next slide, please. So this is a more independent research view of how the market will develop. The dark area, you can see these are the lithium ion batteries in your phone, in your laptop, and that is viewed to come to an end by the end of the decade. Big statement to make given all the lithium ion battery capability around. But the reason for that is that they're gonna be replaced by advanced lithium ion. Similar Similar production process, but we exchange some of the graphite with silicon nanoparticles. The reason we do that is graphite is effectively a sponge for lithium ions and not a particularly good sponge.

40:03 So the silicon nanoparticle is a much better sponge, so it can take many more lithium ions for the same volume. And so by replacing this graphite with the silicon, a poor sponge with a good sponge, we can take take more lithium ions into the same volume of the battery, therefore increase the energy density. So that's where the world has decided the, you know, the development is gonna go, and we will be participating in that. And there's also a teal line with lithium sulfur, and that is predicted to come online 2025. They, of course, didn't know about our breakthroughs with additives, so we believe that's gonna come earlier, and the market penetration will be larger. The exciting part of lithium ion batteries is that they are much, much lighter, up to three times lighter than current lithium ion batteries for the same amount of energy.

40:53 But if I have two additives, one for an anode and one for a cathode, it doesn't take too much to come up with the idea of why don't we combine that. Once we combine that, we have what we call a lithium silicon sulfur battery, and that has got truly dramatically high energy densities. And those energy densities are in the same space or higher than what people are predicting for solid state batteries. Now solid state batteries are not really around yet at any kind of scale. And also the the manufacturing environment needs to be made first, needs to be constructed first. So if I have a solid state technology which might work, it doesn't exist yet, will still need a global investment of factories and manufacturing ecosystem to make that happen.

41:44 In contrast with our additives, we can interact with the existing manufacturing system to get to similar levels of performance in terms of energy density. So we think that is probably a lower hurdle route towards success. Next slide, please. So the top graph here shows you what is called the practical energy density. That's really the honest John kind of way of saying, well, this is what the customer will actually get get when they get a packet of batteries with all the wiring and all the packaging, etcetera. And and as you can see, compared to the best lithium ion right now, we have dramatic increases in energy density. So what are we contributing? We have not come up with the idea of a silicon nanoparticle being a better sponge. Other people have done that.

42:32 However, what we are able to do is we are able to make bespoke silicon nanoparticles in terms of shape, they are silicon nanowires or hollow silicon spheres at a really, really low price. And nanowires currently are made for about 20 to $10,000 a kilogram, We and are able to make these for $50 a kilogram. So a dramatic change. Other less bespoke particle shapes retailing for around a thousand to $800 a kilogram, again, our $50 really knocks that out of the park. So we believe we have a great contribution to make that both on terms of functionality because we can tune the shape of the particle, which will enhance the way it works. And two, we can do that at ultra low production costs.

43:25 For the lithium sulfur, our contribution is that we are managing what's called the polysulfide shuffling problem. It might be a little bit of a mouthful. At the end of the day, the sulfur deactivates the battery internally. We have an additive. Think of it like a molecular ball of Velcro that is selected for the sulfur species only and controls what it does inside the battery, extending lifetime by already in the lab around four times or so. And we expect that it'll be a lot more than that because we have not yet fully optimized it. It was really a go, no go kind of set of experiments. And then I already spoke about the lithium silicon sulfur battery with these really high energy densities both in terms of both in terms of weight and in terms of volume. So I'll hand over to Andrew. Thanks very much, Thomas. Just just to give you a little bit of of of a bit of color around the company and the company structure and some of our key shareholders.

44:23 So we are a PLC company, as I said, as of a few hours ago, and and one with almost a fifty fifty mix between Australian investors and UK investors. You know, on the Australian side, the founders are holding almost 30% of the company in total, so there's still that really firm commitment from from those. And on The UK side, you know, we we started off with a lot of investors coming in through the EIS scheme in in The UK, but we've since picked up a lot of institutional support. Players like Janus Henderson, Octopus, like I'm sure some of you know, in Australia, Regal Funds Management, in Asia Fund for SE, you know, a sustainable energy impact fund. So really, really pleased to see our supporter our base grow like that and get the strong support of some very, very important investors.

45:15 Thanks, Drew. Just a brief reminder, we've raised a total of 22,000,000 sterling, and and that's gonna take us through to to our first commercial sales in 2023. The zinc bromide part of our business, although that's a a more mature part, that involves us building up full batteries and battery systems. So quite a a more involved route to market. And so what that means is the performance that is part of our business will will almost catch up to that if you'd like. And so what we're gonna see is is commercializing both streams around that same time 2023. Thank you, Andrew. So on this slide, what we have summarized is historically the amount of capital we raised and return on investor funds. So the first pop around was in 2016. We raised £1,200,000 with the valuation of 5,000,000.

46:03 And as of this morning, we raised 22,000,000 for from the pre IPO and IPO with the valuation of £154,000,000 approximately. So that's over the last six years, that's the return on investments for investors. So, obviously, a great return for everyone who believed in us in the initial stages and currently as well, and we hope to continue to perform really, really strongly in the future as well. This slide summarizes the use of funds. So, basically, all the funds that we have raised pre IPO and IPO of 22,000,000, there's no debt in the business. So every every fund raised will be used in the growth and development of the business in trying to commercialize, accelerate commercialization, and reach significant milestones over the next year, two years, three years time. Thank you. Andrew, back to you. Thank thank you, Amit. It feels great to have arrived, and and I'm really grateful for the support of The UK and and Australian investment community.

46:57 GELION sits at the cutting edge of the energy storage sector, a pivotal driver for the global economy as we move to a net zero energy mix. This IPO will enable us to accelerate and scale our battery technology to meet the strong emerging demand for renewable energy storage over the coming years. Our sector looks to be at the start of a serious boom. Just last month, Bloomberg forecast that energy storage installations will reach more than a terawatt hour by the end of a decade, and this requires more than 260,000,000,000 US dollars of investment. This provides us with a huge opportunity and it's one we're going to grab with enthusiasm. GELNINE will be at the centre of the transition in the stationary and mobile NG markets, and we would be thrilled to have you along for the ride.

47:43 Thanks again for your time and thanks for hearing from us today. That's fantastic, Andrew. Thank you very much and thank you to the team as well for your presentation this morning. And ladies and gentlemen, do please continue to submit your questions using the Q and A tab situated in the right hand corner of your screen. But just for the team to take a few moments to review those investor questions submitted already. I'd like to remind you the recording of this presentation along with a copy of the slides and the published Q and A can be accessed via our investor dashboard on the Investor Meet company platform. I'd also like to remind you that your feedback is important to the company and immediately after the presentation has ended, you'll be redirected for the opportunity to provide your feedback in order that the company can better understand your views and expectations. We've had a number of pre submitted questions. So if I may, I'll just read those out, Andrew, and perhaps you can distribute them or either answer them or distribute them around the team. Yes. Sure. The first question reads, do you think the Australian dollar 280,000,000 is the right valuation for the company?

48:37 Sure. I can take that one as as the first one. Look, we're really happy with with that as a valuation. I mean, we we weren't looking as we went through this process to achieve the absolute highest valuation. We're we're in this for for the long run, and and we feel that it's it's the results that we're going to deliver over the next twelve, eighteen, twenty four months that will determine that valuation. So, no, we're we're quite happy with that and and and very, very comfortable, really. Fantastic. Thanks, Andrew. Next question we've got here is what is July's estimated cost of manufacture of their batteries? Stuart? So, GELN, we we estimate at the cost of our battery packs being conserve conservatively under US $90 a kilowatt hour when we're at a gigawatt hour scale. So even at low scale, that type of cost.

49:28 And in upcoming press releases, we'll be announcing our pricing for battery systems for specific applications through the customers. That's great. Thank you very much indeed. Next one we've got here is why is GELLINE listing in The UK and not Australia? Yeah. We it's a good question. We get we get asked that that one a lot. You as you saw from a previous slide, we've we have our our investor base is is almost fifty fifty split Australia and and The UK, and we've always had a parent in The UK. And so when we started this process, we we really gave consideration to both listings. And and we just got a really, really strong support and strong response here from the investment community in in The UK. That combined with the the investment encouragement, if you like, from from the UK government, in the end, made it a very easy decision for us. And and, look, sitting here today, we're really, really happy to to be where we are.

50:26 Thank you, Andrew. Next question we've got is what is so different about your technologies, and how easy would it be to rep be replicated by others? Hans? Yes. So so so what's different is, of course, the ability to do the zinc bromide in a non flow system and having that in having that with the manufacturing approach, which is the same as for that asset. In terms of replicating that, we do have patents around some of the key elements. The coating of our electrodes with our three-dimensional gel electrodes is is well very well covered patent wise. And we also have know how that we are not patenting for for for the reason of preventing people from just copying it. And furthermore, in terms of doing the actual, you know, manufacturing, what we will what we will do is distribute some of the core elements amongst different supply companies so that no one company is really able to understand the full the full way of manufacturing everything.

51:26 And that is that is another layer of defense in terms of our IP. Fantastic. Thank you very much indeed. Two more pre submitted questions. I think you have covered some of this off. But what will the money be used for and when do you expect to need more? So as I said earlier on the slide presentation that all the money that we are raising now will be used in terms of development of the technology and commercialization. So part of our strategy is obviously investment into the additive business, so lithium silicon new co. So that's a huge opportunity for us, and we want to capitalize on that. CapEx for the manufacturing partners, so customizing their their plans for for zinc bromine batteries, accelerate development, working capital, and OpEx of the business. So no debt. So that nothing has been used to pay down any kind of a debt in the business as well. In terms of going back to the market, 2024 is where we see ourselves likely coming back with investors.

52:18 Hopefully, we'll have we'll we would have achieved a lot in in the next couple of years to kind of get your support again in two, three years time. Thank you. That's great. Thank you, Amit. And the final one we have here is what should investors be looking for in the next six months to a year? We have quite a pipeline of of things happening over the next six to twelve months. There there'll be I think Stuart hinted at at one of one of them in terms of some agreements that we've got happening with with large European renewable energy companies, but we've also so so there's quite a pipeline. We've got some technical really, really exciting technical things coming out and and also some partnerships, further partnerships with with manufacturing companies that that we spoke about earlier, just expanding that to improve our footprint. So stay tuned.

53:08 Thank you, Andrew. And we've had a number of questions submitted during the meeting. If I may just ask you just to click on that Q and A tab and where appropriate to do so, if you could read out the question and give your response. I'm kind of conscious of time. We've got about five minutes or so, but over to you, please. Thank you. I guess there's an easy one to start off. What is GELN's listing code? I can take that. It's GELN. In in terms, I guess, in this one, Stu, you might wanna answer the one from in terms of will the business be able to provide long term warranties? Oh, absolutely. We'll be we're we're already discussing the warranty strategy with our manufacturing partners, and our batteries are going to be lasting a long time. Therefore, the warranty is very important.

53:57 We want to make sure that we have the right warranty provided for the customer to give them the confidence in the product for long term. Yeah. So one one I'll hand over to professor Mashmaier question about the lithium sulfur Yeah. Gravimetric density. So so the question is correct. So, therefore, we believe lithium sulfur will be most attractive for aviation kind of applications because of the weight issue. And the following on question, are we already talking to manufacturers in aviation? We are currently setting up a pouch cell manufacturing so that we can compare and contrast various cell designs with and without our additives to then go out to potential partners. And that will happen mid early to mid next year as part of our milestones.

54:47 And there's another question here. Is your zinc bromide battery capable of providing starting cranking count levels? And there's also another one I picked up around the uninterrupted power supplies. Basically, what we have decided to do is for our first product to be an energy shifting product that is able to to shift energy on a daily basis. That's how we design to how we optimize the battery design. But we can change it slightly, and, absolutely, we can also service the UPS market. And we can do the starting cranking market because we have a fair amount of surface area in our carbons, and that allows us to have those initial high counts as as we need as we need them for that application. However, that's not so compatible with energy storage, energy shifting.

55:38 So we are going for one market first, and then we start to look at the others. The zinc bromide chemistry is very flexible. You wanna do that? Yeah. Sure. There's there's just a last one here around about pricing the advanced battery additives. And and and I guess there's two angles to that because as you heard earlier, we have two separate development lines. One one is around silicon nanoparticles. And in a way, that's an easier question to answer because that's an existing market, and we will be tapping into existing market, and we'll need to be cost competitive on you know, in terms of our our costs and our performance. That one's relatively easy, and and as I said, we don't have any concerns there because our cost base is much, much lower than the competitors.

56:26 The lithium sulfur additives is a is a more interesting one because our product will be the first one onto the market and the first one to get that sort of performance improvements. And so we'll be working with this with the our customers, but, basically, it's about capturing a fair amount of the value add from our particles, but also allowing our customers, the battery manufacturers, to benefit from them. And and, you know, we haven't yet got to the point of actually pricing, but that would be the strategy that we would follow for that. Andrew, thank you very much indeed. You've covered all the questions we've had from investors, which is fantastic. Any further questions that do come through, of course, you'll be able to review them with public responses where appropriate to do so. Andrew, perhaps if I could just ask to wrap up in the closing snapshot from you before we redirect the attendees to give you some feedback.

57:16 Yeah. Look, as I said earlier, we're just really, really pleased and proud to have arrived here after such a long journey, if you like, from from our start up in 2015 through the lab, the development, getting products out into the field, and and finally, a listing here on on the AIM and and a global company. So really, really grateful for the support that's that's, got us to this point. Would love to have any of the listeners today on board, as an investor, and and please reach out if you've got got any more questions. Fantastic. Thank you, Andrew. Thank you to the team for updating investors today. Can I please ask investors not to close the session? It should be automatically redirected for your opportunity to provide your feedback in order that the management team can better understand your views and expectations.

58:02 This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team of GELN PLC, we'd like thank you for attending today's presentation. That concludes today's session. Thank you, and good morning.