Chemic emical al Recy cycling ling transf ansforming orming the - - PowerPoint PPT Presentation

Chemic emical al Recy cycling ling transf ansforming

• rming the

plastic stic wast ste e economy

• nomy

4Q report

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PP ABS PE

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The Plastic Paradox

10 % is recycled 27 mtons from EU

Source: Goldmansachs - the-plastics-paradox 2018 EllenMacarthurFoundation – New Plastic Economy

100 BUSD lost to market World production

• f waste is

242 million tons 5 years to 55%

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What made this happen?

www.nationalgeographic.com/environment/2019/05/shipping-plastic-waste-to-poor-countires-just-got-harder/ www.plasticpollutioncoalition.org/pft/2019/3/6/157000-shipping-containers-of-us-plastic-waste-exported-to-countries-with-poor-waste-management-in-2018 www.nationalgeographic.com/environment/2018/11/china-ban-plastic-trash-imports-shifts-waste-crisis-southeast-asia-malaysia/ P L A S T I C W A S T E H A N D L I N G G L O B A L L Y

China enacted a «Plastic ban» on waste imports million tonnes will have to be allocated between 2019-2030

120

BASEL Convention is amended restricting free flow of plastic waste to poor countries (180+ countries signing!)

• f plastic waste exports goes to

poor countries without proper recycling industry

78 %

EU (the worlds largest plastic waste exporter) in trouble:

• Not enough plastic recycling capacity
• New export limitations
• f plastic waste must be recycled -

EU requirement by 2025

55 %

Europe and US changes waste stream to Southeast Asian countries leading to an immediate environmental crisis shipping- containers from US to Asia in 2018

157,000

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H I G H G R O W T H N A S C E N T M A R K E T

Massive growth is new plastic-to-product market

Source: McKinsey&Company

2030: >200 million tonnes plastic reused 2030: “Alternative reuse” of plastic biggest profit growth >50 million tonnes for pyrolysis ~25 BUSD for pyrolysis

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M A R K E T M A C R O O U T L O O K

Global players scrambling for developing their position

Oil majors Chemical majors Recycling majors

Compa pany y exampl mples es “REMONDIS has initiated a project to develop and operate so so-called chemical recycling facilities.“ Compa pany y exampl mples es Compa pany y exampl mples es State ted d ambiti tion: State ted d ambiti tion: State ted d ambiti tion: “BASF is working on recovering and recycling of plastics through our ChemCycling project.“ “Neste targets to process more than one million tons of plastic waste annually by 2030.“

See major opportunities in alternative fuels Expect chemical recycling to become a major factor Need to increase recycling – require chemical recycling

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Chemical Recycling is the only solution

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T E C H N O L O G Y R E F I N E M E N T S

Feedstock handling system

B Technology

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T E C H N O L O G Y R E F I N E M E N T S

Pyrolysis reactor

B Technology

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T E C H N O L O G Y R E F I N E M E N T S

Unique catalyst solution

B Technology

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T E C H N O L O G Y R E F I N E M E N T S

Distillation column and storage

B Technology

5 4

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T E C H N O L O G I C A L U N I Q U E N E S S

Quantafuel transforms plastic waste to recycled, high-quality products in a unique catalytic PtL process

Pl Plas astics tics

PE PE PP PP

Py Pyrol

• lysis

sis oil (in gas aseou

• us

s state ate)

Alkan anes es 40% Aromat atics s 30% Olefins 30%

Su Suitable table product ct hydr droc

• car

arbon

• ns

Alkanes > 90 %

Final al, , separ arated ted products cts “Naphtha” ~16%

(C (C6H14

14 – C10 10H22 22)

(160 0 kg / 230 l p per tonne nne)

Dies esel el ~56%

(C (C10

10H22 22 – C22 22H44 44)

(560 kg / 710 l per r tonne) e)

Heat atin ing Oil l ~8%

(C (C23

23H48 48 – C28 28H58 58)

(80 kg / 85 l per tonne) e) + ~10% perman manen ent t gases es – used for heati ting of plant (plant self-sufficien ent t with energ rgy – providing ~1-1,5 MW in surplus heating)

Reactor

• rs

Quanta ntafuel Cata talyst yst syste stem (QCS S 9.0) 0)

Distill stillation tion

+ ~10% carbo bon rich ash

2 3 4

(80% of input put mass) (90% of input put mass)

Tota

• tal
• 800 Kg
• 1035

5 litre

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One production process – two markets

T I T L E

Recycled Carbon Fuels (RCFs) Recycled Petrochemical Feedstock Drop in Fuel – EU REDII Similar to biofuels mandate Co-mingled Petrochemical Feedstock

High Est : 1400–1700 USD/MT (HVO) Low Est : 1000 USD/MT (RME) High Est : 1500 USD (bio)

Low Est* : 700 – 1 000 USD/MT

*Prices based on observed market sentiment

PRODUCT MARKET PRICE

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The consumer-goods industry under preassure «Nestlé today announced that it will invest up to CHF 2 billion to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of innovative sustainable packaging solutions. Building on its 2018 commitment to make 100% of its packaging recyclable or reusable by 2025.»

Press release 16.01.2020

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1) Revenue is based on average FAME/HVO market price of USD 1 000 / MT S K I V E E C O N O M I C S

Quantafuel Skive with 15.1 MUSD rev and 8.9 MUSD EBITDA with 60 MT and 45 MUSD and 29 MUSD with 180 MT in 2022

2021 economics with 60 MT first plant 2022 economics with 180 MT capacity

15,1 1,2 1,5 2,5 1,0 8,9 45.2 3.6 3,0 5.7 4,2 28,7 Revenues Direct expenses Personnel Other OPEX Service fee Quantafuel AS EBITDA Revenues Direct expenses Personnel Other OPEX Service fee Quantafuel AS EBITDA

MUSD

EBITDA: 59% EBITDA: 63% 1) 1)

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Consumer good companies screeming for solutions

“We’re going to turn it into the biggest plastic recycler in the world.”

Russel Hardy, CEO Vitol – January 2020 Financial Times

“Moreover, the partnership is a first step to build up a broad supply base for Chemcycled products. This enables us to support our customers in achieving their sustainability targets.”

Hartwig Michels, president Petrochemicals, BASF

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P&L 2019

Quantafuel Statement of Operations Q4 2019 2019 Q4 2019 2019 Unaudited Unaudited Unaudited Unaudited Company Company Group Group

(kNOK) (kNOK) (kNOK) (kNOK)

Revenues 466 47,134

• -

Other income

• 497
• 497

Total revenues and other income 466 47,630

• 497

Cost of materials

• 69,318 - 193,087

351 - 1,236 Salaries and personnel costs 23,442 - 23,271 20,709 - 29,038 Depreciation

• 1,112 - 1,216
• 3,212 - 3,352

Other operating expenses

• 6,835 - 18,524
• 5,148 - 19,533

Total operating expenses

• 53,822 - 236,098

12,700 - 53,159 Operating profit (/loss)

• 53,356 - 188,467

12,700 - 52,662 Net financial gain (/loss) 9,831 - 11,904 8,845 - 14,442 Profit (/loss) before taxes

• 43,525 - 200,371

21,545 - 67,103

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Balance 2019

Quantafuel Balance sheet 2019 2019 Unaudited Unaudited Company Group

(kNOK) (kNOK)

Assets Property, plant and equipment 1,541 358,748 Right-of use asset 3,043 44,602 Investment in Associates 17,156

• Intangible assets

19,892 23,339 Other non-current assets

• 3,232

Total non-current assets 41,632 429,921 Accounts receivables

• -

Other receivables 63,305 13,540 Cash and cash equivalents 145,437 150,666 Total current assets 208,742 164,206 Total assets 250,374 594,127 Quantafuel Balance sheet 2019 2019 Unaudited Unaudited Company Group

(kNOK) (kNOK)

Equity and Liabilities Shareholders’ equity 112 112 Premium reserve 502,481 502,481 Uncovered loss

• 447,952 - 282,965

Non-controlling interests

• 68,510

Total equity 54,641 288,138 Deferred tax 57,083 Loans to financial institutions 98,825 115,555 Long-term leasing liability 2,226 41,141 Total non-current liabilities 101,051 213,779 Short-term leasing liability 933 4,366 Accounts payable 61,806 59,481 Trace, other payables and provisions 3,587 10,481 Finance debt Other current liabilities 28,355 17,882 Total current liabilities 94,682 92,210 Total equity and liabilities 250,374 594,127

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O W N T H E V A L U E C R E A T I O N

Quantafuel’s business model is to build, own and operate PtL plants, each established as a separate SPV

Service fee

Local partner

• Invest capital
• Local competence
• Potentially contribute with feedstock

Plant owning SPV

• Quantafuel ownership >50 %
• Plant construction and operations
• Plant financing
• Secure feedstock and fuel sales
• Plant technology and design
• Plant planning, construction and

commissioning

• Operational support

2 Plant price 1 Dividend 3

Thank you!