Bergen Carbon Solutions AS

Investor Presentation • Aug 24, 2022

COMPANY UPDATE - 24 AUGUST 2022

AGENDA

About BCS

Emerging market: Batteries

Operational

Management and Board changes

• Finn Blydt-Svendsen appointed interim CEO of BCS on 3 May 2022, following the resignation of Jan B. Sagmo.
• Blydt-Svendsen co-founded Bergen Carbon Solutions in 2016 and has served the company in a variety of roles.
• Blydt-Svendsen will serve as interim CEO while the Board identifies his successor.
• Jon André Løkke appointed Chairman of the Board on 20 May 2022, following the step down of Dag Skansen from Chairman to Member of the Board.
• Løkke is currently President at Hydrogen Europe, Board Member of NEL, and previously CEO of NEL.

Finn Blydt-Svendsen was appointed interim CEO on 3 May 2022.

Jon André Løkke was appointed Chairman of the Board on 20 May 2022.

Highlights

• Investment decision: First full-scale production factory will be based in Høyanger, with annual production capacity of 160 tons. Equivalent to 20 % CAPEX reduction.
• Increased product portfolio: Multi-Walled Carbon Nanotubes added to product portfolio, after successful testing by independent third-party NORTEM. No need to modify technology to produce MWCNT. Conductive, thermal, and mechanical properties open new, potential market opportunities.
• Interim CEO: Finn Blydt-Svendsen was appointed interim CEO of BCS on 3 May, following the resignation of Jan B. Sagmo. Blydt-Svendsen co-founded the company in 2016 and will continue to lead the company, while the Board identifies a successor.

Q2 SUMMARY

Financials (MNOK) H1 2022

Operations

• DIEGEL 2.0 installed and commissioned: The two final DIEGEL 2.0 production units were commissioned at our test facility on Flesland, bringing the annual production capacity to 3 tons of CNF.
• Test module delivered: The test module for direct CO² capture was delivered to Bergensområdets Interkommmunale Renovasjonsselskap (BIR) energy recovery plant. The module has a theoretical production capacity of approximately 1.6 tons of CNF annually.

Revenue MNOK	0.2
Operating profit MNOK	-28.2
Cash balance MNOK	319.7
Market cap MNOK	1.37BNOK
Number of shareholders	>4 400

ABOUT BCS

Bergen Carbon Solutions at a glance

ABOUT BERGEN CARBON SOLUTIONS

KEY FACTS

• Founded in 2016
• Producer of carbon nanofibers
• Headquarter in Bergen, Norway
• Competent team of engineers and PhDs
• Unique and green technology
• Acquired commercial production site s
• 40 full time employees
• Listed on Euronext Growth Oslo (Ticker: BCS)

• Lighter than plastic, stronger than steel, with exceptional thermal and electrical conductivity, properties that can be transferred when combined with other materials.
• Estimated CAGR of 25-27% towards 2024 1,2 , covering a wide range of industrial and technological applications.
• Market price of CNF between NOK 5 000 per kg and NOK 27 000 per kg depending on quality 1 .
• Our products cover the whole range of qualities, meeting different customer needs.

WE USE CO² TO CREATE CARBON NANOFIBERS AND NANOTUBES

ABOUT BERGEN CARBON SOLUTIONS

Notes: 1) PwC analysis, October 2020; 2) "Reduction in CO2 emissions from using carbon nanofiber additives" (Alagic, Blomgren et al., 2022)

ABOUT BERGEN CARBON SOLUTIONS

Our technology is using CO² as feedstock in CNF production

An electrolysis process break the chemical bonding. Carbon (C) can then be taken out of the production module and transferred manually over to the filtration module

Oxygen (O² ) is emitted through a vented duct in the production module

The carbon is filtrated in a patented filtration module and then, carbon nanofiber is ready for sale as a final product

O2

Production method

Our technology is climate positive and uses significantly less energy than conventional methods

ABOUT BERGEN CARBON SOLUTIONS

Bergen Carbon Solutions Positive CO² impact

ABOUT BERGEN CARBON SOLUTIONS

CNF and MWCNT has a variety of applications such as additive to composite, lithiumbased batteries, supercapacitors and solar desalinations with environmentally positive impact

CNF and MWCNT

Selected application areas

• CNF and CNT are carbon fibers and tubes at the nanometer scale, consisting of several graphene flakes.
• Emerging material that has a unique combination of strength, durability and conductivity.
• Wide range of applications. We have conducted a preliminary study to show the potential CO² reduction effects of CNF in batteries, plastics and concrete¹ .

HIGHLIGHTS Q2

First full-scale production factory in Høyanger

NOK 90m CAPEX reduction by choosing Høyanger

• The decision will reduce risk related to construction, timing and financing, as Høyanger has existing facilities, modern infrastructure, access to skilled industrial labor, sufficient licensing hydropower and potential long-term power supply agreement.
• Production set-up will be based in an existing production hall, hence reducing CAPEX with NOK 90m or 20% compared to the greenfield project in Mosjøen.
• The full-scale production factory has a CAPEX of NOK 325m at 160 tons.
• Production is targeted to commence mid-2023. The ramp-up period is estimated to be 9-12 months.

Construction and financial risk

CAPEX

Risk and capital needs both reduced

Flexibility

CARBON DEVELOPMENT SOLUTIONS

Further development at Mosjøen

• Carbon Development Solutions (CDS), which will be a hub for nano material research, is already established in Mosjøen and the first material tests have already been requested.
• CDS will continue with full force at Mosjøen independent of the location of the first BCS factory.
• Mosjøen continues to be an attractive location for our next fullscale factory.

• BCS introduced MWCNT (Multi-Walled Carbon Nanotubes) after successful independent thirdparty testing, undertaken by NORTEM (a joint venture of SINTEF, NTNU and UiO).
• MWCNTs have better conductive, thermal, and mechanical properties than CNFs and this breakthrough will open new, potential market opportunities for BCS in nano materials, particularly in the battery industry.
• Initial testing suggests limited modification requirement on the currently designed process for CNF to produce MWCNT. CNF

MWCNT added to MWCNT market size is estimated to be 7x larger than CNF product portfolio

EMERGING MARKET: BATTERIES

Soaring global demand for lithium-ion batteries

Projected global battery demand³ in GWh by application

• Batteries are generally valued by four axioms¹ :
  • 1. Energy storage.
  • 1. Energy efficiency.
  • 1. Charging and discharging.

  • 1. Cycles without deterioration.

• CNF/CNT enhances these four battery properties through combining silicon and carbon for lighter and more resilient anodes² .
• The global demand for lithium-ion batteries is driven by e-mobility trends, in turn creating a potential demand surge for CNF/CNT in the future.

CNF's effect on EV-batteries

+1.2% CNF Added to the anodes

ELECTRIC VEHICLE EXAMPLE

Example: Tesla with a 100kWh battery – Battery weight 625kg

Composition and structure of a conventional rechargeable battery (LIB)¹

Notes: 1) Comprehensive Review of the Advancement in Recycling the Anode and Electrolyte from Spent Lithium-Ion Batteries (Arshad, Faiza et al.); 2) Park et. al, Cameán et. al, Wang et. al

The direct cost savings from adding CNF is within our guided price-range, even before the value of faster charging times and better cyclability is counted for.

OPERATIONAL Q2

Diegel 2.0 installed and commisioned at Flesland on schedule

• The two final Diegel 2.0 installed and commissioned on guided schedule: 4 in total. Diegel 2.0 has 8x higher production capacity than its predecessor.
• The annual production capacity at our test-center is now 3 tons and serves as an important R&D facility for BCS both within the development of CNF and MWCNT.
• The commissioning of the two last diegels at Flesland takes us one step closer to full-scale industrialization.

Test-center fully operational on guided timeline

CO² capture module successfully delivered to BIR

• On June 30th, the test module for direct CO² capture was delivered to Bergensområdets Interkommunale Renovasjonsselskap (BIR) energy recovery plant, providing a theoretical annual capacity of ~1.6 tons CNF.
• The project started in 2018 with funding from Enova with the aim of utilizing CO2 directly from BIR's energy recovery plant to create a value product.
• The many years of R&D put into this project has also enabled Bergen Carbon Solutions to develop a full-scale factory production concept.

BIR's energy recovery plant BCS' test module Output

Production of carbon nanofibers replaces CO² with O²

Operational plans, priorities and decisions ahead

• The number one priority is to implement the full-scale factory at an industrial scale in Høyanger.
• Continue collaboration with industry players to blend CNF/MWCNT in batteries, composites and advanced polymeric materials.
• BCS will continue to expand the range of utilization for CNF and MWCNT.