Bergen Carbon Solutions AS

Investor Presentation • Mar 29, 2023

Strategy update

Odd Strømsnes, CEO 29 March 2023

The green supermaterial of the future

Agenda

• 1. Executive summary
• 1. Key concepts
• 1. Technology
• 1. Market
• 1. The way forward

Executive summary

Electrify better, manufacture stronger

Making CO2 a valuable resource

Pure play CCU material company enabling clean carbon for green manufacturing

We make clean carbon from harmful, excessive greenhouse gasses

CCU 1 is an alternative to carbon capture and storage, securing control of raw material delivery

OUR JOURNEY

Fully funded strategy with NOK 293 million cash balance

CEO

Karina Brudeseth CFO

Finn Blydt-Svendsen COO

CIRO

Håvard Husby CTO

Jeanette Solheim CHRO

Fredrik Øksnes CCO

CCUS uptake needed to achieve net zero commitments by 2050 GTPA

1) McKinsey, Scaling the CCUS industry to achieve net-zero emissions; 2) CCUS = Carbon Capture, Utilization and Storage

Decarbonizing industry

• Decarbonizing of industry is needed to achieve net zero
• CCUS 2 investment growth: 120 times by 2050 to achieve commitments.
• Reach at least 4.2 gigatons per annum of CO2 captured 1
• Annual investments in CCUS are expected to reach 120- 150 bn. \$ beyond 2035 1

EV battery as a strong driver

• BCS' initial focus is the EV market which has the highest demand and willingness to pay for solid carbon
• Batteries for EVs are today the largest contributor for the increased demand of solid carbons in the form of anode graphite materials
• "Without an increase in synthetic graphite production, it is difficult to see how EV adoption targets can be met in time" Edison Luo, Rystad Energy senior analyst

Battery anode materials (BAM) 1 Thousand tonnes

1) Rystad Energy, Synthetic graphite holds the key to meeting battery demand surge, despite ESG concerns (approximate numbers)

Our technology adds value both upstream and downstream

With our technology, we can both capture CO2 directly from flue gas or run on captured CO2 (CCU)

From CO2 we make high quality carbon products, tailormade for the customer, ranging from small nano-particles to graphitic macrostructured carbons

A flexible triple threat go-to-market strategy

Why invest in Bergen Carbon Solutions

• 1. There's a massive demand for carbon products and emission solutions in the market
• 1. Our technology roadmap is robust and unique
• 1. Strong sustainability offering bringing carbon production to the EU
• 1. Competitive cost advantages and roadmap for moving down the cost curve
• 1. Multifaceted go-to-market strategy
• 1. Solid financial runway towards scaleup with NOK 293 million in cash balance

Key concepts

Carbon 101

• Conductive, strong, light weight and durable
• Carbon is everywhere
• CO2 as a GHG plays key role in the energy transition and decarbonization

CNT, CNF and graphene are the most common carbon materials

Carbon Nano Tubes (CNT)	Single-walled carbon nanotube (SWCNT) or graphene nanotube (GNT)
Current focus	Multi-walled caron nanotube (MWCNT)
Carbon Nano Fibers (CNF)	Carbon nano fibers (CNF)
	Monolayer graphene
Graphene	Platelet graphene "few layered", or bulk graphene
Graphite	Graphite
	Segment relevant to BCS	14

How it's typically made Fossil carbon

How we make it Clean carbon

The cleanest way to source carbon Technology

Where we're going

• Technology matured significantly in the last year
• New filtration technology significantly reduces unit cost and strengthens technological position
• Lower unit prices and higher yield in production reduces company risks by increasing technology's competitiveness

Groundbreaking filtration significantly reduces unit cost

Batteries need clean, noble materials

Batteries have a huge potential

Total battery anode materials (BAM) demand expected to increase 300% by 2025, reaching 2.9 million tonnes 1

By converting from fossil to green carbon production, CO2 emissions would be reduced from 14.5 to negative 5.8 million tonnes CO2

1) Rystad Energy, Synthetic graphite holds the key to meeting battery demand surge, despite ESG concerns

Near-term deliverables (6-9 months)

• Continue to mature our technology
• Deliver our first CO2 recycling pilot
• Build industrial attention and cooperation with relevant players in MWCNT and AAM offtake space

Our current focus

• Implementing necessary business model adjustments
• Further developing the organization
• Verifying technical qualities
• Delivering products at right prices

MWCNT = Multi ²³ -Walled Carbon Nano Tube AAM = Active Anode Material

On-site production

• An alternative to heavy mining or petroleum-based industry
• Solutions can be installed close by end user ensuring local supply, utilization of local CO2 emissions and secure access to raw-materials

COST EFFICIENT | FLEXIBLE | RELIABLE

CASE

Carbon production with moderate CO2 concentrations

Producing carbon nano products directly from flue gas at BIR installation

• Project successfully completed with conclusion that carbon nano products can be produced even with moderate concentrations of CO 2
• Results will be implemented in equipment design and an important factor in the technology qualification

Intellectual property right

• To secure first mover advantage, a strategy of not actively applying for technology patents has been pursued until now
• However, it might be relevant to patent parts of technology as market and technological opportunities expand

Technology

Cutting costs to enable clean carbon at scale

Cost reduction initiatives

Our drivers for profitability are:

• 1. Recycling of electrolyte
• 1. Reuse of electrodes
• 1. Energy efficiency
• 1. Cost effective factory design

1. Recycling of electrolyte

• Recycling of electrolyte is the most significant cost element of our production
• New process nearly eliminates loss of electrolyte
• Proof of concept concluded
• Will verify scaling suitability in 2023

Goal: Reuse of 99%+ electrolyte

2. Reuse of electrodes

• Thermal and mechanical challenges limit lifetime of electrodes
• Improved design reduces wear and increases lifetime
• Thermodynamical and electrical modelling to optimize design and current flow

Goal: Increase lifetime of electrodes by 5x

3. Energy efficiency

• Thermal losses mainly in extraction of product
• Heat generation from imperfect current conductors
• Revised production cell design reduces energy loss
• Move energy from electrolysis (surplus energy) to separation (needs energy)

Goal: Reduce power consumption in core process to 40 kWh/kg solid carbon

4. Cost effective factory design

By implementing all our new findings in our new factory design and utilizing more large-scale benefits, we expect to be able to produce significantly more carbon on less complex machines.

This allows us to:

• Reduce the complexity
• Reduce waste
• Reduce the overall CAPEX

Goal: Reduce CAPEX by scaling, and achieving adequate funding

In short

Through our cost reduction initiatives, we expect the overall cost of converting CO2 to solid carbon to be significantly reduced

Meaning: Increased possibility to enter new markets

Market

Rapidly expanding carbon market

Carbon: Two different structures

Global graphite demand from batteries expected to grow 4x from 2022 to 2030

1) McKinsey Battery Insights

Global CNT market is estimated at 3.3 bn. USD in 2021, expected to grow at CAGR of 15% for the next few years

90% of known name-plate production capacity focus in Asia 2 MWCNT, tons, examples of companies

Key market opportunities

The battery growth is happening within mobility, meaning this

is also where we will see the largest demand

Source: McKinsey & Global Battery Alliance Article: Battery 2030: Resilient, sustainable, and circular, January 16, 2023

Towards 2030, production will move from China to EU/USA

Cell producers qualify suppliers in two steps

Qualification of new supplier

• Screening of samples from a range of suppliers for quickly assessable metrics like density, specific surface area, pore volume and particle shape.
• Key are low impurities (Fe and ash content in low ppm range) and good control over particle size distribution.

Source: BCS analysis ³⁷

RFP and specific technical requirements

• Contract duration is at least for 3-5 years and preferably longer to avoid the process of qualifying new suppliers and have product quality variation.
• A close relationship to the supplier is very important to understand and tune material properties together.
• Cell producer gives ~50% of capacity to its preferred supplier and strong partner, distributing remaining smaller shares to others.

Future CO2 pricing opportunity

• Global drive towards CO2 tax and stricter regulations
• EU's 2030 Climate Target Plan sets out to reduce GHG2 emissions to at least 55% below 1990 levels by 2030
• As CO2 prices increase, BCS' competitive advantage will strengthen gradually

€ per ton of CO2 ¹

1) Energi og klima.no, and Carbon permit prices when EU extends its ETS, Cambridge Econometrics (approximate numbers) 2) GHG = Greenhouse gas ³⁸

Green battery growth happening now

The green energy transition is dependent on batteries

Our technology enables a positive CO2 contribution for one of the largest contributors of CO2 emissions in a battery cell today

33%

Anode material drive ~33% of emissions

1) McKinsey Article: The race to decarbonize electric-vehicle batteries, February 23, 2023

Financial discipline and key priorities The way forward

Secured attractive pilot production facility adjacent to Hydro Høyanger

• Attractive location for potential production facility
• Favorable terms secured
• No current capital investment commitment
• A potential investment decision to be made as part of the realization of the triple treat GTM model if deemed attractive from a ROI perspective

Fully funded to commercialization

Key figures	2022	2021
Total revenue and other income	1 486	874
Total operating expenses	57 441	30 711
Operating profit (loss)	(55 955)	(29 837)
Net profit (loss) for the period before tax	(54 001)	(30 107)
Net change in cash and cash equivalents for the period	185 694	66 798
Cash and cash equivalents, end of period	292 989	107 295
Equity	308 730	118 632
Total assets	336 670	145 609

Fully funded to deliver on key priorities

The green supermaterial of the future

Disclaimer

This Company Presentation (the "Presentation") has been produced by Bergen Carbon Solutions AS (the "Company" or "BCS"). The Presentation has been prepared for information purposes only, and does not constitute or form part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity.

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