Aker Carbon Capture

Investor Presentation • Nov 3, 2020

Q3 2020

Valborg Lundegaard Chief Executive Officer

3 November 2020

Content

Highlights Aker Carbon Capture in brief Operations and business development Summary Outlook Q & A

Highlights

Listed on Oslo Stock Exchange 26 August, 2020

Norwegian Government recommended to fund building of CCS plant in Brevik, Norway

Test program on hydrogen production unit in Sweden

Aker Carbon Capture in brief

Pure play carbon capture company delivering ready-to-use capture plants

Best-in-class HSE friendly solvent and other patented plant technologies for better all-round plant performance

Market-leading proprietary technology with more than 50,000 operating hours

The big picture

2030: ~2,400 CCS plants required to meet targets

A significant addressable carbon capture market

"Projects now nearing a final investment decision represent an estimated potential investment of around USD 27 billion – more than double the investment planned in 2017" – IEA

September 17: EU raises climate ambition and proposes 55% cut in emissions by 2030

~5,200 plants globally w/ CO² emissions >1 million tonnes/year

Europe takes lead in carbon emission cuts

"For Longship to be a successful climate project for the future, other countries also have to start using this technology"

Erna Solberg Prime Minister Norway 21 September, 2020

• "The EU aims to be climate neutral in 2050" - A European Green Deal (EU)
• "Denmark must reduce greenhouse gas emissions by 70 percent in 2030 compared with 1990"
• "Sweden to be carbon neutral by 2045"
• "Norway strengthens target to reduce emissions with at least 50%, and towards 55% by 2030"
• "New target will require the UK to bring all greenhouse gas emissions to net zero by 2050"

Key markets and industries identified

Main activity in Northern Europe

• Scandinavia
• Benelux
• UK

…leading the way

Prioritized industries

• Cement
• Bio/Waste-to-energy
• Gas-to-power
• Blue hydrogen

The carbon capture value chain

Proprietary technology

Unique HSE profile – a key differentiator

High CO² capture rate (~90%) & Energy efficient reclamation

Regular amine solvent: High solvent degradation (discolouring) in operation on coal flue gas

$$\text{Thafah a’ cleachadh air a tha a’ cleachadh.}$$

ACC S26 solvent - no discolouration

Our carbon capture product offering

Big Catch ≥400,000 t/pa

Optimized with superior heat integration

Just Catch 40-100,000+ t/pa

Compact, modularized and cost efficient

CCS economics turning positive

Operations and business developments

Stock market listing

• Successful listing 26 August
• Private placement of NOK 500 million
• Listed on Merkur Market, with ambition of main board listing in 2021

• 27,000 shareholders

  • +3,500 since day 1

Board of Directors

• Henrik Madsen (C)
• Kristian Monsen Røkke
• Øyvind Eriksen
• Nina Jensen
• Oscar Graff
• Kjell Inge Røkke (d)

Delivering CCS plant at Norcem cement facility

The world's first CCS plant at a cement facility

• Signed framework agreement with Norcem HeidelbergCement for the EPC delivery of a complete CO2 capture plant in Brevik, Norway
• EPC delivery of a 400,000 t/pa capture plant
• Contract value of approx. NOK 1.7 billion
• Strong execution model with Aker Solutions
• In operation from 2024

Longship – establishing the complete value chain

• Norwegian government launched "Longship" 21 September
• Includes funding for carbon capture at Brevik and Northern Lights storage project
• Excess storage capacity at Northern Lights
  • MoUs with big international industrial groups

Big opportunities in blue hydrogen

• EU sees €11 billion market for hydrogen from natural gas, with CCS
• Currently testing at Scandinavia's biggest oil refinery, Preemraff in Sweden

"…we consider the future as our most important market and the journey to a sustainable society as one of our most important issues" – Preem

Carbon capture and utilization

• Contract signed with Twence for delivery of 100,000 tonnes capture
  • Pending govt. funding
• Waste-to-energy plant in Hengelo, Netherlands
• Captured CO² transported and utilized as fertilizer at nearby greenhouse – improving project economics
• EPC delivery of Just Catch unit with liquefaction
  • In operation from 2022

Collaboration with Vattenfall

Aker Carbon Capture has signed a Memorandum of Understanding with Sweden's Vattenfall to accelerate the evaluation of future carbon capture plants in Sweden and Northern Europe.

The agreement will support Vattenfall´s ambitions to achieve negative emissions in waste and bio CCS plants.

Vattenfall operates 15 bio energy plants in Sweden, Germany and the Netherlands. Photo: Vattenfall

"We want to make fossil free living possible within one generation" Vattenfall

Summary and outlook

Emission points in target markets

463 industrial sites with emissions of more than 100,000 tonnes per year in our target geographies and industries

• Cement
• Bio/Waste to Energy
• Gas-to-power
• Blue Hydrogen

Market opportunities

CPH Amager, Denmark

SSE Thermal, UK

Forus, Norway

Vattenfall, Sweden

Net Zero Teeside, UK

Ålborg Portland, Denmark

Creating the leading sustainable carbon capture company

10 in 25

Our ambition is to secure contracts to capture 10 million TPA* CO2 by 2025

*tonnes per annum

Outlook and priorities

Successfully deliver the NORCEM project

Continue developing opportunities in prioritised markets

Realize programmes to drive down carbon capture costs

Position for strategic markets through partnership

Investor relations

Market cap NOK 4 billion Investor base 27,000

Top 20 investors own 70% of shares

Financial Calendar

• Feb 12, 2021: Q4 Results 2020
• Apr 20, 2021: Annual General Meeting
• May 4, 2021: Q1 Results 2021
• Jul 9, 2021: Q2 and Half-Year Results 2021

Analyst coverage

• SEB Anders Rosenlund
• Carnegie Eivind Garvik
• Fearnleys Øystein Vaagen
• Pareto Synne Wesmann

Appendixes

• P&L
• Balance sheet
• Cash flow

Consolidated income statement Jul 8 - Sep 30, 2020

Amounts in NOK thousand	Jul 8 - Sep 30, 2020
Revenue	5,611
Operating expenses	(18,177)
Operating income (loss)	(12,566)
Net financial income (loss)	71
Net income (loss)	(12,495)
Other comprehensive income	-
Total comprehensive income	(12,495)

Earnings per share (0.02)

Consolidated balance sheet As of Sep 30, 2020

Amounts in NOK thousand	Sep 30, 2020
Assets
Property, plant and equipment	2,279
Intangible assets	3,004
Non current assets	5,283
Current operating assets	13,378
Cash and cash equivalents	492,571
Current assets	505,949
Total assets	511,232
Equity and liabilities
Total equity	484,214

Total equity and liabilities	511,232
Current operating liabilities	27,018

Consolidated cash flow statement Jul 8 - Sep 30, 2020

(1,399) 500,000
(6,030)
6,465
(12,495)
Jul 8 - Sep 30, 2020

Cash and cash equivalents at the beginning of the period	-
Cash and cash equivalents at the end of the period	492,571