Nel ASA

Investor Presentation • Apr 20, 2022

Herøya opening

April 20, 2022

Positioning Nel for the industry take-off

ANDERS SØRENG CHIEF TECHNOLOGY OFFICER

Hydrogen will play an important role in the world's transition to green energy solutions

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\$1.5/kg

Nel green hydrogen cost target by 2025

Assumptions: Nel analysis based on electricity of \$20/MWh, >8% cost of capital, cost of land, civil works, installation, commissioning, building water etc., lifetime 20 years incl. O&M cost, at 30 bar

Organizational development

Never compromise on safety

Nel technology strategy

• Ensure world-class organization and facilities
• Develop modular designs for large-scale deployment
• Further enhance bankability
• Further reduce product TCO
• Timely introduce technologies with predictable performance and lifetimes

Technology strategy driving industry leadership

People Activities Infrastructure

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Aligning with industry and customer expectations

NEL'S HISTORY WITHIN WATER ELECTROLYSIS

....unmatched!

1930-1990's 2022

World's two largest hydrogen production plants

World's largest electrolyser equipment production plant

2022 →

CURRENT PRODUCTS – IMPROVED QUALITY AND COST

Further product development – improving efficiency and capacity of cell stack

Targeting CAPEX and OPEX reductions beyond original roadmap in current manufacturing line

CURRENT PRODUCTS – IMPROVED QUALITY AND COST

High volume production and product standardization reducing system cost to enable \$1.5/kg

CURRENT PRODUCTS – IMPROVED QUALITY AND COST

Building blocks that enable scalable solutions to meet customers' need for larger hydrogen production plants

• Completed design for 800 MW green hydrogen plant
  • 200 MW building blocks
  • Safety in design
• Consolidated balance of plant elements to optimize CAPEX
• Realizing synergies to reduce cost
• Nel is the only company with a large-scale track record
  • Bankable, proven technology with performance guarantees

Safe, cost-efficient and hassle-free installation

• Pre-assembled pipes, stacks and separators - ensures hassle-free installation in a safer and more efficient way
• Reduces time and cost for customers
• Produced by pre-qualified contract manufacturing partners

Safe, cost-efficient and hassle-free installation

• Develop skids for easy transportation

• Easy to unload
• Easy to assemble
• Fully automated stack assembly at Herøya from 2023
• Ensures scalability from 20 to 800 MW plants and beyond

...and now some new stuff

....unique pressurized alkaline electrolyser technology

.....targeting market optimization with both atmospheric and pressurized alkaline technologies

ELY – ALKALINE; EXTENDING ALKALINE PRODUCT PORTFOLIO WITH PRESSURISED TECHNOLOGY

Unique electrolyser design optimised for safe operations, energy efficiency and cost

For illustration only

For illustration only

Unique design targeting the lowest TCO

• Developed for off-grid connection to renewables
• 10-15 bar system output pressure
• Min. 5 MW optimized skid solution fits inside 20 ft. open frame
• Skid-based design for flexibility scope of supply and plant scalability
• World-class efficiency performance
• Designed for automated manufacturing and low-cost supply chain
• Outdoor classification, no building required
• Thermally insulated to minimise heat loss
• Bankable

MAIN TAKE-AWAYS

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"We unlock the potential of renewables and enable global decarbonization"

Nel is on its way to pursue \$1.5/kg target in 2025

Nel is positioned to deliver among lowest cost products today

More fun to come!

Factory tour HERØYA OPENING

Pre-Treatment

Gamechanger event

Pre-Treatment

Pre-Treatment

Treatment of 3 parts before chemical line:

1) Separation/carrying plate

2) Two x electrode plates for anode

3) Two x electrode plates for cathode

Fully automated line

• High volume
• High repeatability & quality
• Low overall cost including manpower
• Low maintenance
• Simple and green process method

Nel Business System

Quality control CELL 1 & 2 : QUALITY CONTROL

• Inspects all deliveries
• Supplier work on their improvements
• Good quality from supplier needed to make good end product
• All key parameters monitored and controlled
• Actions taken before outside specs
• Good process gives good output

• Quality is controlled even with good material and process
• Using statistics for analysis of process
• Linked to end product quality for continuous improvements

Chemical line

Gamechanger event

Chemical line

Chemical line functions

The two main functions of the chemical line:

• Nickel plating for corrosion resistance
• Catalytic loading for cell energy efficiency

Chemical line operation

Operation of the chemical line:

• Fully automatic process control
• All process steps can be optimized individually
• Fully automatic care of jigs/racks
• Daily cross-functional monitoring meetings

In Control, Capable and Maintained methodology (ICCM)

Methodology:

• Process understanding
• Process viewpoint Focus on leading indicators
• Statistical Process Control (SPC)

Outgoing Quality Control:

• Mechanical properties
• Electro-chemical properties
• Layer composition

Assembly and inspection

Gamechanger event

Assembly and inspection packing station

Assembly station

• Significantly improving the HSE for the operator
• High repeatability and quality
• Process control includes torque, rotation and time
• Each electrode has a unique serial number
• Full traceability of all material used and all process parameters

Final Inspection Station

• 4 Inspection stations for manual inspection
• Data from assembly station shown visually
• Final visual inspection of surfaces

• 95% of electrodes approved in final inspection

• Nel Business System utilisation

Filip Smeets SVP Electrolyser

Manufacturing facility in Wallingford

• Nel has the longest track record in PEM electrolysis with over 25 years of experience
• Originally the PEM units were developed for respiratory oxygen in submarines. Hence our focus on reliability
• Nel PEM skill center is based in the US with an R&D and manufacturing facility in Wallingford, CT.

HOW PEM UNLOCKS THE POTENTIAL OF RENEWABLES

Unique qualities

ALKALINE ELECTROLYSERS PEM ELECTROLYSERS

Atmospheric alkaline

Low cost High efficiency Large scale

Advanced alkaline Dynamic response

Intermittent operation

PEM Dynamic response Intermittent operation

Advanced PEM Lower cost High efficiency

Larger scale

• Both Alkaline and PEM have unique features, some of the most important strengths of the PEM-technology are:

• Fast response time
• Operating flexibility ideal for pairing up with intermittent renewable power sources
• Very small footprint (size)

HOW PEM UNLOCKS THE POTENTIAL OF RENEWABLES

Green hydrogen from intermittent power sources

• The PEM platform is perfect for production of green hydrogen from intermittent power sources such as wind and solar
• Ideal for sites where you have little space, such as existing industrial estates, hydrogen refueling stations or for off-shore hydrogen production

HOW PEM UNLOCKS THE POTENTIAL OF RENEWABLES

PosHYdon – Green Hydrogen on offshore installation

• Innovative pilot project 13 kilometer off the coast of Scheveningen, NL
• Green hydrogen to be produced offshore on operational platform
• Investigating the practical aspects of energy systems at sea and producing hydrogen in an offshore environment

Large scale green hydrogen production from offshore floating wind

• To produce large-scale 'green' hydrogen from offshore floating wind
• To integrate electrolysis and wind turbine on moored floating sub-structure
• Around 80 % of the world's offshore wind resource potential is in waters deeper than 60 meters
• Concept developed by ERM

Industrializing our PEM platform

• Scaling up and automation will drive down cost
• Reducing overall material usage
• Reducing dependence on exotic materials such as iridium and platinum

Fueling the green transition

Robert Borin SVP Nel Fueling

OUR AMBITION – FOSSIL PARITY

Make it as easy and to the same price, to fill up a fuel cell electric vehicle compared to vehicles running on petrol or diesel – and, provide comparable driving range

HYDROGEN MOBILITY – WHY IT MAKES SENSE

The advantages of hydrogen

No emissions

An obvious prerequisite for all modern vehicles, making all fossil fueled vehicles obsolete

Long driving range

A well-functioning truck must be able to drive 1500 km on one tank.

Fueling time

Where the battery electric vehicle can not compete with a traditional fossil fueled vehicle on charging time, the fuel cell electric vehicle can.

X 15

Land requirements

Charging of battery electric vehicles require 15 times* more land area than fueling hydrogen vehicles

HYDROGEN MOBILITY – EARLY MARKET MOVEMENTS

The green transition is a reality

HYDROGEN MOBILITY – TO BEAT FOSSIL FUELS

So, what does it take?

• User convenience
• Fast fueling
  • HD less than 12 minutes
  • LD less than 3 minutes
• Higher volumes
  • HD more than 80 kg
  • LD 5 to 10 kg
• Competitive Total Cost of Ownership (LCoH)
• Fossil parity uptime and reliability

HYDROGEN MOBILITY – THE FUTURE

This is only the beginning!

number one by nature