Fjord Defence Group ASA

Investor Presentation • Oct 12, 2021

CO2 Capsol: A Proven, Cost Competitive Carbon Capture Technology

www.co2capsol.com info@co2capsol.com

CO2 Capsol at a glance

Overview

• CO2 Capsol is a proven, cost competitive carbon capture technology
• Full cycle cost (opex and capex) of \$30-37/t (vs. \$43-70/t for traditional technologies)
• Easily scalable End of Pipe ("EoP") solution
  • » Standalone module at the flue gas outlet
  • » Efficient installation no modification required at the mother plant
• CO2 Capsol technology utilizes a patented heat recovery process in conjunction with Hot Potassium Carbonate ("HPC")
  • » Delivers materially lower capture cost than traditional amine based solutions
  • » Uses proven science and widely deployed technology
  • » CO2 Capsol has brought various components together to package as a commercially attractive carbon capture solution
  • » Superior safety and non-hazardous solvent: feedback has confirmed this is a key consideration and was an important reason for the pilot projects choosing CO2 Capsol

\$30-37/ton Full cycle capture cost

Up to 2.5mtpa Capacity per "Capsol" capture train

18-24 months

Planning, installation to commissioning

3,300+ operational hours

To date from three highly successful pilot projects(1)

>99% Operational uptime

Company highlights

Brief History of CO2 Capsol

Over \$70m invested in testing and developing a highly competitive and patented commercial solution for carbon capture

Carbon capture – Essential in mitigating climate change

2020: CCUS technology captures 35 Mt CO²

2040: CCUS must capture 2,400 Mt CO2 (account for 9%)

U 's li g ls, p s i s 25x i 10 s, as much as 226x in 40 years

Potential carbon capture – impact and value

• The current Carbon Capture market is relatively small (30m tons in 2019). In order to meet the UN's climate target we need to capture 760m tons of CO² by 2030, and 6,800m tons by 2060!
• Est. annual market value of €19bn and €170bn in 2030 and 2060, respectively; assuming an avg. cost of €25/ton using our Capsol EoP solution (industry standard assumes €35- 45/ton)
• In addition to adding CCS technology to new plants, retrofitting CCS technology to existing plants is an important part of the solution to avoid emissions from the vast fleet of existing fossil-fueled power and industrial plants
• 6,800 mill tons equivalent to 100 mill bbl/day – in line with total oil production

Growth Trajectory

• Universally agreed that CCUS is a critical part of delivering net zero
  • » Strong support by governments around the world to catalyse CCUS technologies and infrastructure through grants, subsidies, tax breaks
  • » Emitters actively seeking carbon capture solutions driven not only by ESG pressures but increasingly by commercial necessity
• CO2 Capsol has attracted significant interest from emitters
  • » In active discussions with single site emitters through to global emitters with 1,000+ sites where CO2 Capsol solution could be deployed
  • » Track record of referrals through existing clients and project partners
• Increasing dialogue with greenfield project developers (e.g. blue hydrogen production, liquefaction plants) – CO2 Capsol is not just a solution for existing emissions and is equally deployable alongside new low carbon projects

Overview Global Interest

Global Interest		15+ countries
New Regions		Middle East, Far East
Inbound Frequency		4-5 per week
Active Leads		40
e e n v eli cti p A Pi	NDAs Signed	40+
	Emissions Footprint	c.270mtpa
	Deployable Sites	c.1,000

Technology Overview

Technology Overview

• Highly competitive solution for carbon capture with costs of \$30-37/t
  • » ~40% lower cost than traditional capture solutions
• Utilizes patented technology for the recirculation of heat that maximizes efficiency of the absorption/desorption process in conjunction with HPC
• EoP solution in trains with capacity of up to 2.5mtpa
  • » Easily scalable with multiple units for larger projects
• Unit is powered by electricity only
  • » No need to invest in steam production to run capture unit
  • » Ability to integrate with process steam from the mother plant if available to further improve economics
• CO2 Capsol's technologies and processes are processes are protected by patents – key patents are valid into the early-to-mid 2030s
  • » New patents will be filed as the technology is refined through ongoing pilots and projects

Patented Heat Recuperation Process with HPC

Further efficiencies and economies can be gained from:

Using process heat / steam from the mother plant Heat recuperation from any subsequent liquefaction process Sale of residual heat for district heating

Cost Advantage of CO2 Capsol

Cost Advantage

• Capex: CO2 Capsol similar traditional capture solutions
• Opex: Significantly lower than traditional capture solutions driven by lower energy usage (largest component of cost in capture process) as a result of the CO2 Capsol internal heat recuperation process
• Net capture costs can be reduced further if residual heat is monetized, e.g. for district heating, which can bring the capture cost to sub \$10/t

Lower Energy Consumption(1) and… …~40% Lower Capture Cost than Traditional Amine Technology

(1) Capture only – excludes liquefaction

(2) Based on company estimates and studies (Swedish Energy Agency report "Conceptual study for Bio-CCS within Stora Ensos Swedish kraft pulp mills" and Sintef report "Reducing the Cost of Carbon Capture in Process Industry")

HPC as a Solvent

Proven	HPC as an absorbent is thoroughly documented and used in thousands of existing plants across the world
Widely Available	Potassium carbonate is commonly used in the food industry
Safe	No hazard to environment or people
Low Cost	Significantly less expensive than amines
Non carcinogenic	Captured CO is totally free of degraded (potentially carcinogenic) amines 2

Collaboration Agreement with Petrofac

• CO2 Capsol has entered into a collaboration agreement with leading international services provider Petrofac
• Petrofac is awarded the Front-end Engineering Design (FEED) contract for the Stockholm Exergi (SE) Bio-CCS project
  • » selected by SE due to quality and price
  • » potential of capturing 800,000 tons of CO2 per year, which equals the (current) annual CO2 emissions from all traffic in Stockholm.
  • » SE target to complete the construction and begin operations during the second half of 2025
• The FEED is based on the CO2 Capsol's End of Pipe (EoP) technology
• The agreement with Petrofac has received a lot of positive attention
• CO2 Capsol and Petrofac collaborate on several projects in addition to the SE project
• The agreement is a non-exclusive MoU focusing on Carbon Capture opportunities across the UK, Europe and over time, globally

About Petrofac

• Globally leading EPC-company

• 40 years of experience with execution track-record of more than 200 major projects

• Revenues of USD 4bn (2020)
• Global presence with 10,700 employees (2021)

Case Study: Stockholm Exergi

Stockholm Exergi Selects CO2 Capsol

• Stockholm Exergi is the provider of power, district heating and cooling to the city of Stockholm
  • » Owned 50% by the City of Stockholm and 50% by new investor(2021)
• In 2018, it undertook a comprehensive study on carbon capture solutions for its biomass-fired combined heat and power plant at Värtaverket
• CO2 Capsol's technology was selected as the preferred solution due to:
  • » Highly competitive economics
  • » Ease of EoP installation
  • » Proven technology with HPC already widely deployed
  • » Safety of HPC compared to amines
  • » Opportunity to recover carbon capture process heat for district heating

Installation Type	Combined heat and power plant
Pilot Capacity	450tpa
Construction Time	2 months
Operation Track Record	18 months
Uptime	>99%
Full Scale Deployment	0.8mtpa in 2025

"If we can build such a facility, basically in the middle of Östermalm in Stockholm, then there are no places in the world where you can not build a carbon capture plant," Fabian Levihn - Head of R&D at Stockholm Exergi

About this Presentation

CO2 Capsol AS (the "Company") has prepared this Presentation, together with its enclosures and appendices, (collectively, the "Presentation") to provide introductory information on its business and activities.

This Presentation is for information purposes only and should not be construed as an offer or invitation for the sale or issuance of, or a solicitation of an offer to buy or subscribe for, any financial instruments, shares or other securities in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the financial instruments/securities of the Company. This Presentation has not been approved or reviewed by, or registered with, any public authority or stock exchange. This Presentation is not a prospectus and does not contain the same level of information or disclosure as a prospectus or similar documents.

This Presentation is strictly confidential and may not be disclosed, reproduced or redistributed, in whole or in part, to any other person than the recipient, without written approval by the Manager or the Company.

This presentation contains information obtained from third parties. Even if such information has been obtained from reliable sources the Company provides no guarantee that such information has been accurately reproduced or that no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

To the extent projections and financial analyses are set forth herein, they may be based on estimated financial performance prepared by or in consultation with the recipient and are intended only to suggest reasonable ranges of results. CO2 Capsol has no obligation (express or implied) to update any or all of the information or any analyses contained herein or to advise the recipient of any changes; nor does CO2 Capsol make any express or implied warranty or representation as to the completeness or accuracy of the information contained herein.

Any calculations or value ranges indicated herein: (i) are preliminary and should not be construed as opinions of CO2 Capsol or their individual members as to value, fair market value, or prices at which a transaction would be considered fair from a financial point of view, and (ii) have not been subject to the processes that we apply to fairness opinions and valuations, including our due diligence process and our internal opinion review process and, accordingly, must not be considered to constitute a "valuation", "formal valuation", "appraisal", "professional opinion", or "fairness opinion" as contemplated under IIROC Rules 29.14 to 29.25 or Multilateral Instrument 61-101 and must not be relied upon or disclosed as constituting such a document or opinion.

This Presentation speaks as at the date set out on the cover and the Company assumes no liability to update this Presentation and neither the delivery of this Presentation nor any further discussions by the Company with any of the recipients shall create any implication that there has been no change in the affairs of the Company since such date.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information contained herein. Neither the Company, its parent or subsidiary undertakings, affiliates or advisors, or any such person's directors, partners, officers, employees, advisors or representatives, accept any liability whatsoever arising directly or indirectly from the use of this Presentation.