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Strengthened CCS business case fuels pipeline growth Company presentation March 3, 2025 CEO Wendy Lam and CFO Ingar Bergh
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Default disclaimer text pending Disclaimer 2 THIS PRESENTATION IS NOT FOR PUBLICATION NOR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATED AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THE DISTRIBUTION OF THIS PRESENTATION MAY IN CERTAIN JURISDICTION BE RESTRICTED BY LAW. PERSONS INTO WHOSE POSSESSION THIS RELEASE COME SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH RESTRI CTIONS. This company presentation (the “Presentation”) has been prepared by Capsol Technologies ASA (“ Capsol” or the “Company”) and relates to Capsol. This Presentation speaks as of March 3, 2025, and there may have been changes in matters which affect the Company subsequent to the date of this Presentation. The Company does not intend, and assumes no obligation, to update or correct any information included in this Presentation. Recipients are advised, however, to inform themselves about any further public discl osures made by the Company. The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated marketplace. No representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein is given, and neither the Company nor any of its subsidiaries, directors, officers, employees or advisors assume any liability c onnected to the Presentation and/or the statements set out herein. The information included in this Presentation may contain certain forward -looking statements relating to the business, financial performance of and results of the Company and/or the industry in which it operates. 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An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements o f the Company to be materially different from any future results, performance or achievements that may be expressed or implied b y statements and information in this Presentation, including, among others, risks or uncertainties associated with the Company’s business, seg ments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general e conomic and business conditions. This Presentation is directed at persons in member states of the European Economic Area (“EEA”) who are “qualified investors” as defined in Article 2(e) of Regulation (EU) 2017/1129 (“Qualified Investors”). In addition, in the United Kingdom, this Presen tation is addressed to and directed only at, “qualified investors” as defined in section 86(7) of the Financial Services and Markets Act 2000 who ar e also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”); or (ii )high net worth entities falling within Article49(2)(a) to (d) of the Order (all such persons t ogether being referred to as “Relevant Persons”). This Presentation must not be acted on or relied on ( i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any member state of the EEA other than Norway, by persons who are not Qualified Investors. Any investment or investment activity to which this Presentation relates is available in the United Kingdom only to persons that are both Relevant Persons and Qualified Investors, and in member states of the EEA other than Norway and the United Kingdom only to persons tha t are Qualified Investors, and will be engaged in only with such persons. This Presentation and the information contained herein is not intended for publication or distribution, directly or indirectly, in whole or in part, in, and does not constitute an offer of securities in, the United States (as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)), Cana da, Australia, Japan or any other jurisdiction where such distribution or offer is unlawful. 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3 Capsol for BECCS (bio -energy carbon capture and storage) • Ability to capture a wide range of flue gases: 3-30%1 • Top tier capture rate: 90-95% • Purity that meets industry standards: +99% Capsol delivers robust carbon capture technology 1. CO2 concentration 2. Image source: Stockholm Exergi by Urban Design Separating CO2 from other gases CO2 is compressed and transported CO2 is injected into deep underground rock formations Burning biomass to produce heat and electricity
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4 Licensor of point source carbon capture technology Offering carbon capture and heat recovery in one system 1) Based on company estimates, internal and external studies (Swedish Energy Agency report “Conceptual study for Bio-CCS within Stora Enso’s Swedish kraft pulp mills” and Sintef report “Reducing the Cost of Carbon Capture in Process Industry”) 2) 140-400 kWh Electricity consumption 0.5-1.5 GJ per ton of CO2 captured2 Attractive capture cost 20-60% Lower than amines1 Mature pipeline 17.2mt Up ~45% year-over-year Studies and project leadsCapsolGo® and licenses T echnology experience 15+ Decades proven chemistry >17 000 hrs of demonstration Norway (HQ) Germany US
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Highlights – Q4 and full-year 2024 51. CDR = Carbon Dioxide Removals, which have been sold to Microsoft and Frontier for future delivery in the form of credits these companies can use to offset their own Scope 3 emissions. Strong revenue and pipeline growth • Revenues increased 2.75x to NOK 94.2 million • 45% y-o-y growth in mature project pipeline to 17.2 million tons annual CO 2 capacity • EUR >200 million revenue potential in projects that can reach FID next three years Capsol’s technology verified by industry leaders Initiatives to drive performance and value capture • Stockholm BECCS set for FID after receiving EUR 1.7 billion in governmental support • Technology further verified through CDR 1 sales, EU support and environmental permit • Increasing commercial traction with leading industrials, including Holcim and SUEZ • Launched HPC R&D Center and initiated project with Stockholm Exergi and partners • R&D program aimed driving performance and enabling recurring services revenue • Current business plan fully funded, NOK 64.4 million in cash
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Recent news – commercial traction continues Total mature project pipeline >17m tons of CO2 capacity 6 • Dec 16, 2024 – Holcim Group to test Capsol’s technology in Q2 25 at Dotternhausen cement plant, Germany. • Dec 2, 2024 – Global energy company awards Capsol feasibility study for one of its oil refineries in Northern Europe. 800,000 tons of CO2 per year. • Dec 5, 2024 – Suez awards Capsol feasibility study for energy-from-waste plant in France. >150,000 tons of CO2 per year. • Oct 1, 2024 – Cement producer in Germany awards Capsol a feasibility study for a cement plant. 400,000 tons of CO2 per year. • Jan 16, 2025 – European cement plant awards Capsol Pre-FEED. 600,000 tons of CO2 per year. • Dec 20, 2024 – Large European utility awards Capsol feasibility study for energy-from-waste plant. Study focuses on a solution for a large -scale operation.
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0 2 4 6 8 10 12 14 16 18 20 Q4 2023 Q1 2023 Q2 2024 Q3 2024 Q4 2024 Million tons CO2 Strong traction driven by demand and competitiveness 17mt mature pipeline at end of Q4 2024 representing up to EUR ~260m pre-tax profit potential 7 Engineering studies includes Concept, Feasibility and pre -FEED (front-end engineering and design) studies with paid engineering work or other project specific work more advanced than "sales engineering” mt = million tons Engineering studies 12.0 mt CapsolGo® 3.85 mt License agreements 1.35 mt +45%
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8 mt = million tons. In addition, 0.8 mt in mature project pipeline from other industry segments. Emerging as a preferred technology in targetindustries Biomass/Energy-from-waste Cement Gas turbines Market drivers Clean power and new business opportunities in carbon removal Meeting new regulations and staying competitive Decarbonize hard-to-abate gas power Value proposition • Low energy consumption • Safe solution fit for residential areas • Can boost district heating • Lower energy consumption with higher CO2 concentration • Easy plant integration; no need for external steam supply • Lower cost than alternatives • Efficient at low CO2 concentrations • Can generate additional electricity Project pipeline capacity and revenue potential 7.8 mt EUR 80-115m 8.5 mt EUR 85-125m In commercialization Pre-FEED study delivered
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• Payment terms of the licensing agreement for CapsolEoP® were met by the end of 2024 • The CapsolEoP® technology has been validated through several significant milestones: ✓ 180 million EUR awarded by EU ✓ Environmental permitting complete ✓ World's largest agreement with Microsoft for carbon removal ✓ Agreement with Frontier for carbon removal ✓ The Swedish Energy Agency committed EUR 1.7 billion, announced January 27, 2025 First licensing fee from flagship BECCS project 9 Installation type Combined heat and power plant Full-scale deployment 800,000 tons CO2 / year by 2028 Stockholm Exergi is the provider of power, district heating and cooling to the city of Stockholm Type BECCS1 (Bioenergy Carbon Capture and Storage) Plant Värtaverket
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Scalable business model yielding attractive returns 10Note: Normally, 12-24 months from feasibility study to final investment decision (FID). Demonstration campaigns typically last for 6 months. License fee typically paid over the construction period, 18-36 months. Sales engineering Engineering study Demonstration campaign (optional) Operational plant Licensing agreement Final investment decision (FID) Timeline for a typical CCS project and Capsol’s revenue streams Engineering and demonstration campaigns payments Technology license fee EUR 10-15/ton CO2 capture capacity Future services Low capital intensity Zero capex risk 40-60% pre-tax MAIN REVENUE CONTRIBUTION IN THE PAST MAIN CONTRIBUTION GOING FORWARD
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First licensing revenue – first profitable quarter 11 16 20 17 22 36 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 23 25 38 29 32 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 • 2.25x Q4-on-Q4 revenues, to NOK 36.1 million • 2.75x y-o-y revenues, to NOK 94.2 million • Demonstration campaigns and engineering still main revenue driver, first license revenue booked Q4 2024 • NOK 3.2 million pre-tax profit, NOK -32.8 million for the full year • Operating expenses of NOK 32.2 million for the quarter and 124.9 million for the full -year • One FID per year sufficient to generate annual profit Revenues mNOK Operating expenses mNOK
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Milestones expected next 6-12 months De-risking the path towards long-term goals and revenue potential 121 Final Investment Decision Bringing CapsolGT® to market Moving to next step of commercialization, towards FEED Fully booked CapsolGo® capacity Generating high margin revenue and supporting acceleration of license agreements and FIDs Stockholm Exergi FID1 Entered next phase of commercialization with first technology licensing revenue Expanding partnerships Increasing Capsol’s ability to reducing capture costs and capturing market share New licensing agreements Proving technology attractiveness for additional industries and growing revenue and profits Scaling deployment of current business model … while building base for new products and services for the future