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Where Flexible Power Meets the Data Economy CORPORATE PRESENTATION LSE: QDE 2026
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Disclaimer QUANTUM DATA ENERGYLSE: QDE 2 These presentation slides (the ‘Slides’) do not constitute an offer to the public or an offer for sale or solicitation to purchase or subscribe for any securities of Quantum Data Energy PLC (‘Quantum’ or the ‘Company’) and they should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or buy securities in the Company. If any person is in doubt as to the contents of this presentation or wishes to obtain advice as to the investment merits of the Company’s securities, he should seek independent advice from a person who is an authorised financial services provider.No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. The information contained in these Slides and the accompanying verbal presentation is in the public domain, however no representation or warranty, express or implied, is given by or on behalf of the Company, its advisors, shareholders, directors, officers or employees, or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (save that nothing in this disclaimer is intended to limit the liability of any party for its own fraud).The Slides and their contents are directed only at persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high-net-worth companies, unincorporated associations or partnerships, and the trustees of high-value trusts) and persons to whom distribution may otherwise lawfully be made. Any investment, investment activity or controlled activity to which the Slides relate is available only to such persons and will be engaged in only with such persons.Any individual who is in any doubt about the investment to which these Slides relate should consult an authorised person that specialises in advising on investments of the kind referred to in these Slides.Persons of any other description, including those that do not have professional experience in matters relating to investments, should not rely or act upon the Slides.The Slides are not for distribution in, nor do they constitute an offer of securities for sale in, any jurisdiction where such distribution or offer is unlawful, including the United States of America, Australia, the Republic of South Africa, the Republic of Ireland, Japan or Canada. The distribution of the Slides in some jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such restrictions.Statements made in the Slides and the accompanying verbal presentation may include forward-looking statements that necessarily involve risks and uncertainties. Forward-looking statements maygenerally be identified by the use of terminology such as ‘may,’ ‘might,’ ‘will,’ ‘expect,’ ‘intend,’ ‘plan’, ‘estimate,’ ‘anticipate,’ ‘believe,’ or similar phrases. Other than state-ments of historical facts, all statements, including, among others, statements regarding the future financial position of the Company, business strategy, projected levels of growth in its market, projected costs, estimates of capital expenditures and plans and objectives of management for future operation, are forward-looking statements. The actual future performance of the company could differ materially from these forward-looking statements. Important factors that could cause actual results to differ materially from these expectations include known and unknown risks. Undue reliance should not be placed on these forward-looking statements.
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IntroductionQuantum’s vision is to be a leading provider of transitional energy capabilities across multiple markets, ultimately providing dividends to investors from the energy transition.QDE operates modular, quick-to-cashflow Dynamic Electricity Generating ("DEG") assets, including reciprocating gas turbines (“RGT”), batteries, and green gas, to balance and complement renewable power.There is currently 8GW of active RGT assets in UK, expected to grow to 15 GW by 2040. Most DEG assets are provided by private and PE-backed companies. We are seeking to be the leading publicly listed company in the sector. Quantum is initially focused on growing its RGT assets to 300+ MW and will over time deploy batteries and “green gas” assets, as well as geographic expansion. QUANTUM DATA ENERGYLSE: QDE 3
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The QDE Solution PHASE 1100 MW shovel-ready sitesPHASE 2300+ MW across AI campusesPHASE 3Scale to 1+ GW pipeline Core BusinessDeveloper, operator, and owner of flexible generationpower assets in the UK with strong expertise in planning, grid access, and power delivery. Complementary New OpportunityPowering the UK’s rapidly growing AI datacentre sector, leveraging proven infra-structure capabilities. Growth PlanTargeting 1 GW of AIdatacentre power campuses,about 12% of UK datacentre demand by 2030, through modular 25–50 MW developments. VisionTo become the LSE’s leading AI infrastructure platform, com-bining power resilience with the development of integrated AI campuses. Powering the AI Era with Scalable Energy InfrastructureQDE is producing transitional energy solutions in an increasingly energy hungry ecosystem and is actively exploring opportunities to execute AI datacentre led expansion opportunities. QUANTUM DATA ENERGYLSE: QDE 4
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Core Business OverviewInvest in Operating, Low-Risk, High Return, Proven Business Model, with Scope for Significant Growth UK Energy Market has critical need for flexible generation, with demand to grow with 7 GW, and RGT assets are proven and attractive solution Quantum has tested and proven first asset, with clear plan to grow portfolio Long-term sustainability of business model supported with diversification into alternative technologies in future, such as batteries and “green” gas Each additional site is quick to cashflow post acquisition, and will be acquired in phases Portfolio growth will enable economies of scale, aggregated purchasing power, cost reductions, and increased profits Ability to continue to grow total portfolio to 300+ MW Increasing free cashflow will enable regular dividends and distributions to shareholders of Quantum QUANTUM DATA ENERGYLSE: QDE 5
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Artificial Intelligence (“AI”) Datacentre Power Supply Strategy Target of 1 GWAI demand is surging across all sectors, exemplified by ChatGPT processing about 2.5 billion prompts daily—a scale Google took over a decade to reach, achieved in under two years. AI Datacentres Drive GrowthRapid AI expansion is powered by datacentres with critical demand for stable, reliable electricity. Major Investment MomentumOpenAI, Nvidia, and BlackRock plan significant UK datacentre investments. Government SupportThe UK aims to be a global AI leader, targeting a 20× in-crease in public AI computing capacity by 2030. Power OpportunityUK datacentre demand is set to quadruple to ~8 GW by 2030 — positioning QDE to be a key power provider fueling the nation’s AI revolution. QUANTUM DATA ENERGYLSE: QDE 6
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Reciprocating Gas Turbine Electricity Generation (‘RGT’)RGT assets generate revenues from four diversified and reliable key sources:Power Purchase Agreement (PPA)Generating trading revenue via PPA with Statkraft from arbitrage opportunity in electricity price volatility vs input costs Embedded BenefitsPayments based on electricity generated (irrespective of electricity price) being delivered straight into national grid distribution system Capacity Market (CM)Guaranteed minimum payments from government to provide capability (capacity payment) up to 15 years Balancing Mechanism (BM)Additional income earned to balance the national grid when there are deficits between supply and demand Supply electricity to fill demand when there is a lull in renewable electricity generation due to volatile weather patternsProvide electricity to maintain grid electricity balance (during times of peak demand and outages). Reciprocating Gas Turbine Electricity Generation (RGT) systems are a key part of the UK electricity gridRGT assets are modular quick-to-cashflow electricity generating assets, to generate electricity to complement and stabilise intermittent renewable electricity generation. RGT assets are also flexible and can potentially be repurposed to use hydrogen and/or host battery storage. RGT assets provides two main capabilities: QUANTUM DATA ENERGYLSE: QDE 7
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RGT Site Schematic QUANTUM DATA ENERGYLSE: QDE 8
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Electricity Trading Partner Founded in 1895, Statkraft is a Norwegian state-owned energy leader and Europe’s largest renewable power generator, operating in 20+ countries.With over a century of expertise in flexible hydro and energy management, Statkraft has become a pioneer in algorithmic and real-time energy trading.Launched the UK’s first Flex PPAs (2018) and was first to trade the Intraday market algorithmically the same year.Statkraft is the UK’s largest real-time and flexible energy trader (2024). UK Flex Portfolio Growth 128Assets Contracted 30%Approx Market Share 1642MW Contracted #1Portfolio Size QUANTUM DATA ENERGYLSE: QDE 9
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Core Business Market AnalysisRGT’s are expected to play a critical role in balancing the UK power system over the next 20+ years as the power system decarbonises. Engines have high residual values that support asset-backed financing (with capabilities for redeployment) RGT’s are standard & modular so can be reliably deployed with highly flexible operating capabilities within a short lead time Mature engine technology with very fast ramp rates, capable of producing and delivering power up to 50% cheaper than alternatives (CCGTs) Monetisation through liquid markets, with a significant component of longterm contracted cashflow through the Capacity Mechanism High security of supply for the grid operators through distributed structure of despatch QUANTUM DATA ENERGYLSE: QDE 10
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Core Business Market AnalysisRapid response fast-ramping RGT engines have an integral role to play as one of the flexibility solutions addressing system balancing to support renewable integration.Demand side responseReduces pressure on the grid from supply side, with incentives for higher system flexibilityConsumer dependent, less reliable & limited capacity due to slow deployment Reciprocating gas turbines (“RGT”) Batteries Pumped hydro Large scale conventional ramping Fast response, capable of multi-hour/ day operations to enable National Grid to manage various system needs & can generate power to support positions in wholesale power markets Very fast response time supports frequency regulation application and able to “absorb” power from the grid and dispatch power to it Fast response, capable of multi-hour operation at reduced load Substantial existing capacity CO2 emmisions, albeit for relativity short periods of operation that can be offset with carbon allowances, and higher marginal cost than traditional thermal generation used for sustained baseload running Short duration with charge cycle limitsrestricts ability to respond to multi-hour balancing demands beyond frequency and restricts ability to perform in wholesale markets Limited viable resources & used for larger-scale frequency response with restricted ability to respond to short-term balancing needs Slowest response, relatively high CO2 emissions due to ramping needs, high capital cost & cost to manage short to medium run responses. Limited ability to provide required fast response flexible solution InterconnectorsGreater pan-EU regional connectivity increases system flexibilityLimitedcapacity, long lead-times to construct & availability less reliable given that interconnectors respond to price signals rather than system needsHIGHER CAPEX LOWER CAPEX QUANTUM DATA ENERGYLSE: QDE 11
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Core Business Market OpportunityUK Capacity Market is a proxy for the market opportunity for DEG.Capacity Market is a government-managed scheme to encourage deployment of DEG assets to ensure electricity sufficiency. The government pays DEG providers to deploy and operate DEG assets.Capacity Market introduced in 2014 and since then RGT generation capacity grew from zero to 8 GWRGT generation capacity is expected to almost double to 15 GWby 2040 to accommodate large increase in intermittent renewables capacity (thus significant room for growth) Successful PE-backed players in market, notably:•Mercia Power Response, Forsa Energy, Conrad Energy, and Balance Power UK Power Market Supply Outlook (GW) QUANTUM DATA ENERGYLSE: QDE 12
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Core Business Revenue ModelPower Purchase Agreement (PPA) Capacity Market (CM) ContractCapacity Mechanism introduced by the UK government in 2014 in order to balance grid and sustain base-load, due to growing intermittent renewables, and planned and unplanned outagesCM contracts are awarded to qualified generators,and each contract’s tariff are determined during a formal bid auction processPayments are made to generators with contracted capacity on the system irrespective of whether generating or not (i.e. payments are guaranteed)Capacity Mechanism payments provide 15-year UK government backed index-linked income, which in aggregate covers c.80% of capex Long-term PPA with Statkraft, between 7-15 years, with option to renew / extendStatkraft employs each site’s generation in Wholesale Market Optimisation (WMO)Statkraft also supplies gas to each site, via Corona (UK’s largest gas supply aggregator) at reduced cost (due to aggregated buying power)Trading strategy based on operational and commercial parameters controlled by QDEStatkraft takes % share of trading gross margin (with % reducing over larger portfolio) QUANTUM DATA ENERGYLSE: QDE 13
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Core Business Revenue Model The Capacity Mechanism provides 15 years of contracted revenue and represent a large share of total revenue for RGT’sIn addition to the Capacity Mechanism, RGT’s have proven highly efficient in energy trading particularly during cold snaps and at times of unexpected events whether macro or due to dislocations arising from the transition of the energy system given their fast ramp rapid response capabilityRGT’s also benefit from other reliable revenue streams including Embedded Benefits (such as Triads and GDUoS, due to Generators distribution use of systems), contributing directly to gross marginOver time RGT’s gross margins are expected to grow driven mainly by the Capacity MechanismAssets with existing Capacity Mechanism contracts can participate in subsequent Capacity Mechanism auctions once the initial contracts are over and re-secure contracted revenue RGT’s have an attractive business case locking in a large share of contracted revenue through the Capacity Mechanism. Contracted / reliable margins QUANTUM DATA ENERGYLSE: QDE 14
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Core Business Revenue Model National Grid contracts directly with generators and flexibility providers to balance the gridGiven the operating capabilities of RGT’s, this asset class is able to participate in the BM and ancillary services, and looking to gain capabilities in frequency controlLiquid wholesale power auctions allow markets to balance their immediate requirements, with substantial price “spikes” when the market is shortThere are opportunities to buy and sell power forward, up to two years ahead with longer-term structured PPA-style solutions developingPayments are made to generators with capacity on the system irrespective of whether generating or notCapacity Mechanism payments provide 15-year UK government backed index-linked income which in aggregate covers c.80% of construction costs Revenue is derived from deep and liquid markets through a “stacking” model that diversifies RGT revenue profile. Wholesale Market Deep & liquid addressable market opportunity Capacity Mechanism Longer Response(miltiple hours, days, weeks)Average Response (minutues, seconds)Split-Second Response (sub-second) Annual Value (£/MW) Fast ReserveSTOR¹ Frequency Response Static Frequency Balancing Mechanism QUANTUM DATA ENERGYLSE: QDE 15
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Core Business Revenue ModelGenerating trading revenue from arbitrage opportunity in electricity price volatility. The graph illustrates the UK intraday electricity vs gas prices over a 24-hour trading periodTypical daily morning and evening price peaks are clearly availableFlexibility to set up turn-off/turn-on parameters deemed appropriate for revenue generation strategy, i.e. required spread between gas and electricity prices. Electricity Prices QUANTUM DATA ENERGYLSE: QDE 16 UK Intraday Electricity vs Gas Prices 17 Sept 2024 30-min time intervalsGas Prices
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THANK YOU Contact:Pieter Krugel, CEOcontact@quantumdata.energywww.quantumdata.energy Corporate Office 6th Floor, 99 Gresham Street, London,England EC2V 7NG LSE: QDE QUANTUM DATA ENERGYLSE: QDE 17