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Vow Green Metals AS

Investor Presentation Aug 24, 2023

3786_rns_2023-08-24_1fe7eaa4-716a-4abe-8250-2bcaaa9152cc.pdf

Investor Presentation

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HALF-YEAR 2023 PRESENTATION

24 Aug, 2023

The formula to unlock emissions reduction at industrial scale

SiO2 + C → Si + CO2

The formula to unlock emissions reduction at industrial scale

SiO2 + C → Si + CO2

Valorizing biomass and biomass waste streams

Spearheading the development of a rapidly growing biocarbon industry

Will be a leading producer of advanced biocarbon and other green products enabling low-cost renewable production at scale for metallurgical industry

First-mover advantage with growing global pipeline totalling more than 600,000 tons of biocarbon production capacity

Unique access to proprietary technology with secured IP rights to standardized plant architecture and biocarbon factory modules and

Main developments

Major milestones reached in all key projects

  • All key projects progressing according to plan
  • Process equipment for early production line installed
  • Excavation work and infrastructure development at Follum underway
  • Several gate reviews passed

Project pipeline expansion

50,000 tons of biocarbon production capacity added in Q2, the pipeline has been high-graded and is now totaling 620,000 tons

Organizational growth

Six new hires in the first half of 2023, strengthening Vow Green Metals' metallurgical expertise and operational capabilities

Financing

Mature dialogues and progress in negotiations with debt providers, equity partners and infrastructure investors to secure funding for new and existing projects. NOK 7.8 million of Enova grant drawn in July 2023, NOK 34.4 million remaining

Financials for first-half 2023

Key figures

Financial review first-half 2023

  • EBITDA for 1st half 2023 negative of 9.4 MNOK
  • Employee expenses
  • Other operating expenses
  • Follum related expenses capitalised
  • Total assets of 125.8 MNOK, of which
  • 96.4 MNOK is process equipment under construction for the Follum plant, net of Enova grant
  • Cash position of MNOK 10.3 (MNOK 18.1 when adjusted for the Enova grant received in July)

First industrial biocarbon production volumes expected in third quarter this year

  • Capacity: 2,500 tons p.a. Planned operation: Q3 2023 Location: Hønefoss, Norway Partners: Vow ASA, Treklyngen industripark
  • Planned commissioning and first biocarbon production starting in Q3 2023
  • Providing significant synergies to the Follum project, improving ramp-up, operations and more
  • Installation work largely completed
  • First operator has started

Early production line Follum (phase 1 and 2) Viken Park

Capacity: 20,000 tons p.a. (10,000 first phase) Planned operation (phase 1): H2 2024 Planned FID (phase 2): H2 2023 Location: Hønefoss, Norway Partners: Vow ASA, Vardar Varme, Lindum, Treklyngen industripark

  • Phase 1 progressing as planned with commissioning and first biocarbon mid-2024
  • Most process equipment for phase 1 already delivered at site
  • Negotiations for civil works and process equipment installation ongoing
  • Joint infrastructure project progressing well
  • Main study for phase 2 initiated accelerated process expected
  • Managing director and the first three operators recruited

Capacity: 30,000 tons p.a. Planned FID: 2024 Location: Fredrikstad, Norway Partners: Vow ASA, Viken Park and unnamed companies at Viken Park

  • Feasibility study completed
  • Pre-study for a plant with 30,000 tons of biocarbon production capacity initiated
  • Evaluating synergies with other companies to locate at Viken Park

Project data

Promising VikenPark project entering pre-study phase

Viken Park industrial area Our concept

  • Set to become one of the largest and most innovative industrial areas in Europe
  • Key focus to optimize industrial symbiosis and energy utilization
  • Great logistics with proximity to E6, Borg Harbour and Rolvsøy freight terminal

  • The concept has a planned production capacity of 30,000 tons of biocarbon p.a.

  • Using the dual energy source C.H. Evensen reactor, provided by Vow
  • Excess energy used by adjacent industrial companies
  • Pre-study to further map the potential for stable feedstock supply, local energy offtake and industrial synergies

Breaking ground at Follum – building Europe's largest biocarbon production facility

Standardization efforts progressing to ensure speed and scale

Improved safety

Standardized processes capturing lessons learned

Reduced cost

Streamlined and efficient processes enabling cost-reduction

Reduced lead-time

Accelerated project development, procurement and installation

Implications for future production plants Vow Green Metals' standardized factory module

Growing global portfolio of large-scale biocarbon production plants

Strong value proposition to local partners

  • Sawmills
  • Offtake and higher value creation on sawmills' by-products
  • Stable bioenergy based on material production (RED III)
  • Industrial parks and district heating
  • Stable bioenergy based on material production (RED III)
  • We get access to well-suited areas with energy consumers
  • Pulp and paper
  • Stable bioenergy based on material production (RED III)
  • Synergies in raw material sourcing
  • Chemicals and metals
  • Stable bioenergy based on material production (RED III)
  • Possible green methane or hydrogen in the future

Pipeline

Norway: 200,000 tons Nordics: 130,000 tons Europe: 220,000 tons Other: 70,000 tons

Total pipeline

620,000 tons

Vow Green Metals add value to biocarbon investment portfolios

The value of reducing emissions is massive – enabling profitable biocarbon at competitive price levels

FORGING A NEW ERA FOR THE METALLURGICAL INDUSTRY

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