Chemical Recycling

transforming the plastic waste

economy
4Q report

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PE

ABS
PP

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 The Plastic Paradox

27 10 % is
mtons recycle
from EU d

World
production 100
5 years
of waste is BUSD
to 55%
242 million lost to
tons market

Source:
Goldmansachs - the-plastics-paradox 2018
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EllenMacarthurFoundation – New Plastic Economy
 PLASTIC WASTE HANDLING GLOBALLY

What made this happen?

120
million tonnes will have to be
China enacted a «Plastic ban» on waste imports allocated between 2019-
2030

Europe and US changes waste stream to

Southeast Asian countries leading to an 157,00 shipping- containers from US

0
immediate environmental crisis to Asia in 2018

of plastic waste exports

78 %
BASEL Convention is amended restricting free
goes to poor countries
flow of plastic waste to poor countries (180+
without proper recycling
countries signing!)
industry

EU (the worlds largest plastic waste exporter) in

55 %
of plastic waste must be
trouble:
recycled - EU requirement by
• Not enough plastic recycling capacity 2025
• New export limitations

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 3/22/20 | 5
www.nationalgeographic.com/environment/2018/11/china-ban-plastic-trash-imports-shifts-waste-crisis-southeast-asia-malaysia/
 HIGH GROWTH NASCENT MARKET

Massive growth is new plastic-to-product market

2030: >200 million tonnes plastic 2030: “Alternative reuse” of plastic

reused biggest profit growth

>50 million tonnes

for pyrolysis ~25 BUSD for
pyrolysis

Source: McKinsey&Company 3/22/20 | 6

 MARKET MACRO OUTLOOK

Global players scrambling for developing their position

Oil majors Chemical majors Recycling majors

Company examples Company examples Company examples

Stated ambition: Stated ambition: Stated ambition:

“Nest e t arget s t o “BASF is working on “RE MONDIS has init iat ed

process more t han one recovering and recycling a project t o develo p and
millio n t o ns of plast ic of plast ics t hrough our o per at e so -called
w ast e annua lly by ChemCycling project . “ chemical recycling
2 03 0. “ facilit ies.“

Need to increase recycling

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

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Chemical Recycling is the only solution

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B Technology
TECHNOLOGY REFINEMENTS

Feedstock handling system

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B Technology
TECHNOLOGY REFINEMENTS

Pyrolysis reactor

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B Technology
TECHNOLOGY REFINEMENTS

Unique catalyst solution

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B Technology
TECHNOLOGY REFINEMENTS

4 5
Distillation column and storage

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 TECHNOLOGICAL UNIQUENESS

Quantafuel transforms plastic waste to recycled, high-quality

products
in a unique catalytic PtL process
Plastics Pyrolysis oil (in Suitable product Final, separated
gaseous state) hydrocarbons products
PE

Alkanes 40% Alkanes > 90

“Naphtha” ~16%
2 3 % 4
(C6H14 – C10H22)

Reactors Distillation (160 kg / 230 l per tonne

Aromatics 30%
Quantafuel
Diesel ~56%
Catalyst system (C10H22 – C22H44)
PP
(QCS 9.0) (560 kg / 710 l per tonne)

(90% of input mass) (80% of input mass) Heating Oil ~8%

Olefins 30% (C23H48 – C28H58)

(80 kg / 85 l per tonne)

Total

+ ~10% carbon rich ash + ~10% permanent gases – used for heating of plant -800 Kg
(plant self-sufficient with energy – providing ~1-1,5 MW in surplus heating) - 1035 litre

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 TITLE

One production process – two markets

PRODUCT MARKET PRICE

Drop in Fuel – EU
Recycled Carbon REDII High Est :

Fuels (RCFs) Similar to 1400–1700 USD/MT (HVO)

e
i es
D biofuels Low Est :
l
mandate 1000 USD/MT (RME)

Na p Recycled Co-mingled High Est : 1500 USD (bio)

hth
a Petrochemical Petrochemical
Low Est* : 700 – 1 000
Feedstock Feedstock
USD/MT

*Prices based on observed market sentiment 3/22/20 | 15

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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 SKIVE ECONOMICS

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

MUSD

45.2 3.6
3.0
5.7

4.2

28.7

EBITDA:
63%

15.1 1.2
1.5
2.5
1.0
8.9

EBITDA:
59%

Revenues1) Direct Personnel Other OPEX Service fee EBITDA Revenues1) Direct Personnel Other OPEX Service fee EBITDA
expenses Quantafue... expenses Quantafue...

1) Revenue is based on average FAME/HVO market price of USD 1 000 / MT

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 Consumer good companies screeming for solutions

“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

“We’re going to turn it into the biggest plastic

recycler in the world.”

Russel Hardy, CEO Vitol – January 2020 Financial Times

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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 i ncome - 497 - 497
Total revenues and other income 466 47,630 - 497

Cos t of ma teri a l s - 69,318 - 193,087 351 - 1,236

Sal a ri es and pers onnel cos ts 23,442 - 23,271 20,709 - 29,038
Depreci ati on - 1,112 - 1,216 - 3,212 - 3,352
Other opera ti ng expens es - 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 Quantafuel Balance sheet 2019 2019
Unaudited Unaudited Unaudited Unaudited
Company Group Company Group
(kNOK) (kNOK)
(kNOK) (kNOK)
Equity and Liabilities
Assets
Sha rehol ders ’ equi ty 112 112
Property, pla nt a nd equipment 1,541 358,748
Premi um res erve 502,481 502,481
Ri ght-of use asset 3,043 44,602 Uncovered l os s - 447,952 - 282,965
Investment in Associates 17,156 - Non-control l i ng i nteres ts - 68,510

Intangible as sets 19,892 23,339 Total equity 54,641 288,138

Other non-current a ssets - 3,232 Deferred ta x 57,083

Total non-current assets 41,632 429,921 Loans to fi nanci al i ns ti tuti ons 98,825 115,555
Accounts receivables - - Long-term l ea si ng l i a bi l ity 2,226 41,141

Other receivables 63,305 13,540 Total non-current liabilities 101,051 213,779

Cash and cas h equiva lents 145,437 150,666 Short-term l ea s i ng li a bi l i ty 933 4,366
Total current assets 208,742 164,206 Accounts payabl e 61,806 59,481
Trace, other paya bl es and provi s i ons 3,587 10,481
Total assets 250,374 594,127 Fi na nce debt
Other current l i a bi l iti es 28,355 17,882
Total current liabilities 94,682 92,210

Total equity and liabilities 250,374 594,127

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 OWN THE VALUE CREATION

Quantafuel’s business model is to build, own and operate PtL

plants,
each established as a separate SPV

Local partner

• Plant technology and design • Invest capital

• Plant planning, construction and • Local competence

commissioning • Potentially contribute with
• Operational support feedstock

Dividend

2 Service fee

1
Plant price Plant owning SPV

• Quantafuel ownership >50 %

• Plant construction and
operations
• Plant financing
• Secure feedstock and fuel sales

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Thank you!

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