Westin Grand Berlin Berlin, GERMANY Fredrik Olofsson Sales manager - - PowerPoint PPT Presentation

Disruptive technology in existing infrastructure

• bringing Circular Economy to the next level

2019-05-22 Recovered Carbon Black Westin Grand Berlin Berlin, GERMANY Fredrik Olofsson Sales manager

Scandinavian Enviro System’s recovered Carbon Black (rCB) Taking a leading position in a global industry with a game changing technology that...

• solves the global waste tire problem
• slashes CO2 emissions,
• provides a solution to global

vehicle industry on recycling ...and get better profitability than the old technology

Important events

2018

• DECEMBER: MoU signed with EE-TDF Cleveland LLC for plant establishment in

Texas, USA.

• JUNE: MoU signed with Treadcraft Limited for a plant establishment in New York

State, USA.

• MAY: MoU signed with Windspace A/S for a plant establishment in Denmark.
• APRIL: Quality anniversary: over 40 millions rubber components with Enviro´s

rCB have been delivered to Volvo Cars. Annual volume rate now approximately 20 million components.

• Working capital consolidated current during the year via offset issue in total of

13,7 MSEK and inflow of approximately 84,5 MSEK gross via rights issue. First quarter 2019

• FEBRUARY: Elysium ApS (planned JV with Enviro as co-owner) signs an

conditional rent agreement of land for plant establishment.

• MARCH: A life cycle assessment (LCA) is executed for Enviro´s. Results states

that production of our rCB reduces approximately the CO2 emissions with 80% compared to production of virgin CB.

Enviro’s rCB reduces CO2 emissions by over 79 %, better than earlier estimates

Recovered carbon black leads to CO2eq emissions that are 79-84 percent lower than the emissions from the production of virgin carbon black – a figure considerably better than earlier estimates of 60 percent. Global Warming Potential, GWP, index used to make it possible to compare the greenhouse effect for greenhouse gases at a joint scale with the greenhouse effect for carbon dioxide.

The LCA results show, among other things, that for each kilo of recovered carbon black that replaces virgin carbon black, total emissions are reduced by 1.43-2.00 kg of CO2.

The LCA study was carried out in accordance with ISO 14040/14044 for life cycle analysis.

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study

LCA (Life Cycle Assessement), 30 000 mT plant based on Enviro technology Flights Stockholm – New York

Reduced CO2 impact

40 000

• 80%

CO2 reduction/ton steel

1 ton

Crude oil can be replaced

ca 14 000 ton

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The carbon black market is expected to grow with 8,8% annually, to a market value of 30 billion USD 2023 – afterwards 6,6% per annum.

21,7 23,6 25,7 27,9 30,4 34,8 2019 2020 2021 2022 2023 2024 2025

Market growth Estimated global carbon black consumption 2018-2025 (billion USD) Tire, 74%

MRG**, 20%

*Other such as ink, toners, coatings and paint ** MRG Mechanical Rubber Goods

Plastic, 4% Other*, 2%

End-use Proportion of market value By product type (2017)

End-users Carbon black

CAGR 6,6%

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Carbon black prices increases more rapidly than oil prices as a consequense of increased demand and harder and higher environmental requirements.

MARIETTA, Ga.—Beginning May 1, Birla Carbon will raise base prices for all its carbon black markets in North America, a move it says is driven by increasing

• perating costs.

All shipments made on or after the May 1 date will be subject to the price adjustment or $170 per metric ton. Those with supply agreements will see price increases implemented upon renewal of the agreement, Birla said in a news release. BOSTON - April 2,2019 - Effective May 2, 2019, or as contracts allow, Cabot Corporation will increase prices for specialty carbon black products by up to 8 percent in North America. Enviro rCB; advantages, pricing, trends etc.

• No connection to oil price
• Low PAH content
• Huge CO2 footprint reduction (approx. 80%

compared to virgin CB)

• Long-term price agreements (fixed or connected to
• ther commodity)
• 10-15 % in discount compared to virgin CB.
• More and more applications are approved for 100%

substitution of the vCB with our rCB. Easier for rubber and tire industry to make decisions around introduction of our rCB.

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Update around new products, customers and applications

• New rCB grades under development based on feedstock

(CE, Agriculture and mining)

• “CE” grade close to be commercialized. Approved by

leading compounder company, replaces virgin CB to 100% (standard grade of rCB replaced 50%).

• Another leading solid tyre producer have approved our
• rCB. Introduction of the rCB soon to be executed.
• Leading compound company want to start introduction of
• ur rCB.
• Ongoing discussions and evaluation of our rCB together with

major tire producers.

• Enviro´s rCB grades is approved continuously for new

applications.

• Ongoing discussion with rubber and tire industry for off-takes

linked to new planned plants.

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The interest in Enviro´s material have increased significantly the latest years.

• Rapid increase during the

year from 9 to over 18 applications and a growth potential volume from 2 000 mT to 18 000 mT.

• Global demand with interest

from Europe, India, China and USA

• Backlog is expected to

growth and create challenges in deliverability of rCB from existing Swedish plant the coming months.

2000 4000 6000 8000 10000 12000 14000 16000 18000

Volume, mT

Qualified interest from customers for Enviro´s rCB.

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study

During 2018/2019 Enviro have experienced significant higher interest in our material

March 2019 September 2018 Customer Customer segment Application % rCB Volume ton annually Status Volume ton annually AnVA Producer/compounder Grommets (Volvo Cars) 100 80 Active orders 80 AnVA Producer/compounder Sealings (Alvenius) 100 8 Active orders 8 Elastomeric (Hexpol) Solid Tire Producer Solid Tires 25-50 150 Active orders 150 AnVA Producer/compounder Not Public 100 Not public Awaiting order Not public AnVA Producer/compounder Not Public 100 Not public Awaiting order Not public AnVA Producer/compounder Not Public 100 Not public Awaiting order Not public Multinational Tire producer 2 Solid Tire Producer Solid Tires Not public 240 Awaiting order 300 Multionational Compounder 1 Producer/compounder Rubber cloth 25-50 500 Awaiting order Not public Carbon Black Trader Trader Various Not public 1000-2000 Awaiting order Not public Multionational Compounder 4 Producer/compounder Various including conveyor belt 25-100 500-1000 Awaiting order Not public Rubber Producer Compounder Various Not public 0 Awaiting order Not public Rubber producer Producer/compounder Various 100 220 Awaiting order 120 HGF (Hamstad Gummifabrik) Producer/compounder Agriculture applications 100 50 Awaiting order Not public Multionational Compounder 1 Producer/compounder Automotive applications Not public 0 Production trial Not public Multionational Compounder 2 Compounder Rubber compounds 50-100 >1000 Production trial Not public Multinational Tire producer 5 Tire and Rubber Producer Tire and rubber applications 10-100 >8000 Production trial Substantial Multinational Tire producer 3 Tire and Rubber Producer Agriculture/solid tires 10-100 1000-5000 Production trial Multionational Compounder 3 Producer/compounder Conveyor belts Not public 0 Production trial >3000 Multionational Compounder 5 Tire and Rubber Producer Solid Tires and conveyor belts 50-100 500 Awaiting order

Approx: 13 200 - 18 000 Approx: 5 000 - 9 000

Accumulated

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Recovered carbon black takes ground and the interest from leading players enhances.

2019 Some of the participants;

Michelin Continental Hexpol Semperit Hankook Birla

2018

rCB is presented as a part of the sector.

”Will increase recycled materials in new tire production to 10% before 2025” ”Will increase the recycled materials in vision 2025” [graph shows a goal of 25-50]%] ”Ambition 2048: Tires will be made using 80% sustainable materials and 100% of tires will be recycled”

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The interest to make investment in Enviro´s technology is obtained from all over the globe.

Numbers of potential plant investors that has approached Enviro 2014-2018 Number Plant project with ongoing mature discussions. 10 20 30 40 50 60 2014 2015 2016 2017 2018

Site evaluation Buffalo, NY

Customer Plant capacity Status Customer sector Country Windspace 30 kT MoU Financial Investor Denmark Treadcraft 30 kT MoU Recycling USA EE-TTD Cleveland LCC 30 kT MoU Tire recycling USA ArticCan 30 kT MoU Energy/recycling Canada Not public 30 kT Quotation Recycling/Investor USA Not public 30 kT Quotation Investor/Industry Abu Dhabi Not public 18 kT Quotation Tire produer Chile

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study

The Swedish plant in Åsensbruk verifies technology and material – as well as creates opportunities for development of new recycled materials.

• Investment in Åsensbruk verifies
• ur technology furthermore.
• Increases opportunity to

industrial operation.

• Increases capacity
• Start recruitment in order to

increase densities

• Request from customers that

want to secure deliveries right now and from new plants.

• Certification according to ISO

9000/14000 will be executed Q2/Q3 2019

• Development of new rCB

grades

• Research and evaluation
• pportunity around recycling

technology for other waste streams such as carbon fiber.

• Evaluation and development of
• ur oil fractions are executed

together with research institutes and companies in the

• il sector.

Enviro´s main know-how is recovery of ELT´s but our technology works excellent for recovery of high quality carbon fiber.

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Thank you, please visit our web page for more valuable information. www.envirosystems.se