Innovation Cool Earth Forum……………………………………………………………………………………………………………

COPYRIGHT © 2022

Carbon Engineering, Pioneering Direct
Air Capture

PRESENTED BY:

Business
Development……………………………………………………………………………………………………………………………………………………………………………………………
COMPANY:

CarbonEngineering Ltd.
……………………………………………………………………………………………………………………………………………………………………………………………
DATE

October
5-6, 2022……………………………………………………………………………………………………………………………………………………………………………………………

Agenda & Video Links

Carbon Engineering (CE) introduction
How to work with CE:
 To decarbonize your organization as a customer
 To learn about how policy can support economic
growth and Direct Air Capture To create a new low-carbon business by partneringwith Carbon Engineering

CARBON ENGINEERING | COPYRIGHT © 2022

The climate challenge

2

Press the links below to enhance your experience withnarration on the presentation from our business development
experts

The Carbon Cycle is
Out of Balance
1

3

PRE-INDUSTRIAL ERA: Carbon flows
naturally between the air, plants, land,and oceans in a balanced “carbon
cycle” that helps keep the Earth’s
climate relatively stable.

1

INDUSTRIAL ERA: For ~200 years,
humans have extracted large
quantities of fossil fuels out of thegeosphere, resulting in a one-way flowof CO2 into the atmosphere.
Deforestation and agricultural
practices also release CO2 into the air.

2

CO2 is building up in the atmosphere,
throwing the carbon cycle out ofbalance, resulting in rapid anddangerous climate change.
The concentration of CO2 in the atmosphere
has increased from ~280 ppm in preindustrial times to ~415 ppm today.1
1 Data Source:

The Kneeling CurveEXCESS CO2 IN OUR ATMOSPHERE IS CAUSING CLIMATE CHANGE

CARBON ENGINEERING | COPYRIGHT © 2022

3

PRE-INDUSTRIAL ERA

32

INDUSTRIAL ERA

2 DEGREES

Remainingcarbon budget

450 ppm
2 DEGREES

450 ppm+ Adding ~2 ppm/yr

We have fewer than 7.5 years left on
the carbon clock before an expected
average of 1.5 degrees of warming

1.5 DEGREES

1.5 DEGREES

430 ppm

Remove ~1 Trillion
tonnes to return tosafe levels.

430 ppm

TODAY

CO2 Emissions (TONNES/SEC)
1,337
SAFE LEVEL

350 ppm

Time left until CO2
budget depleted:
6

PRE-INDUSTRIAL

280 ppm

10

8

3

29 2

CO2 Budget left (TONNES)
Source:ATMOSPHERIC
CO2CONCENTRATIONTHE CARBON CLOCK IS TICKING; THE CLIMATE PROBLEM IS URGENT

313,693,168,289
1.5-degree scenario
Data from 2022-09-14

COPYRIGHT © 2022 - CARBON ENGINEERINGHISTORICAL EMISSIONS

4~419 ppm

We Need an
All-of-the-Above
Approach52large that no single solution is asilver bullet to solve it.

1 We need all the tools in our toolbox
to balance out the carbon cycle
again, including:
1 emissions reduction strategies2 biological carbon removal, and3

technological carbon removal
solutions.

3

COPYRIGHT © 2021 - CARBON ENGINEERING The scale of the CO2 problem is soThe push for net zero

Net zero emissions -Carbon dioxide removal (CDR) – “Anthropogenic activities“Net zero emissions are achieved when anthropogenic
emissions of GHG to the atmosphere are balanced byanthropogenic removals over a specific period.”

removing CO2 from the atmosphere and durably storing it ingeological, terrestrial, or ocean reservoirs, or in products. It
includes existing and potential anthropogenic enhancement of
biological or geochemical sinks and direct air capture andstorage, but excludes natural CO2 uptake not directly caused byhuman activities.”

Intergovernmental Panel on Climate Change (IPCC),
SR15 Global Warming of 1.5˚C

IPCC, SR15 Global Warming of 1.5˚C

COPYRIGHT © 2021 - CARBON ENGINEERING

What is carbon dioxide removal?
6

What is net zero?

Increasingly, sovereign nations and industry giants arecommitting to Net Zero by mid-century or earlier
5,000+

136

COMPANIES COMMITTED TO NET ZERO BY 2050 1

COUNTRIES COMMITTED TO NET ZERO TARGETS 2

7

Commitments have increased more than 10x since 2019

Commitments have increased more than 9x since 2018

CARBON ENGINEERING | COPYRIGHT © 2022

Sources:
1. UNFCC Race to Zero
2. Energy & Climate Intelligence Unit, Net Zero Tracker. Represents countries with targets under discussion, in-policy document, proposed legislation or law with regard to national net-zero commitments.

Three primary challenges in achieving net zero & climate restoration
Carbon Abatement Curve
Carbon abatement costs based on currently available solutions.

3

None of thisaddresses legacy
CO2 already in theatmosphere

1,000

Carbon abatement cost (US$/t CO2eq)

900
800

The cost of carbon
abatement rises
quickly at larger
volumes

1

700
600
500

400
300
200
100
0
-100

0

2

4

6

-200

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

52

Cumulative GHG emissions abatement potential (Gt CO2eq)
Power generation

Transport

Industry

Buildings

Agriculture

Non abatable

Sources:
Carbon abatement costs based on currently available solutions; data from Goldman Sachs, Carbonomics, November 2021

THE NET ZERO CHALLENGE IS IMMENSE :THE WORLD NEEDS STRONG LEADERSHIP AND ACCELERATED TECHNOLOGICAL SOLUTIONSCARBON ENGINEERING | COPYRIGHT © 2022

Current global
emissionscontinue to rise

82

A technologicalmissing piece

COST
Is cheaper thanalternatives for many hardto-abate emissions

2

GROWTH IN EMISSIONS“Has the potential to bealmost infinitely scalable“ 13

NON-DISRUPTIVE
Can address any emission
from any point in time; canoffset today’s emissions andsupports climate restoration
through permanent removal
of atmospheric CO2

CARBON ENGINEERING | COPYRIGHT © 2022

1

1

9

CE brings a solution
with potential toaddress three key climate
problems:

Goldman Sachs – Carbonomics: The Future of Energy in the Age of Climate Change.

TECHNOLOGY NOW DEPLOYING AT COMMERCIAL SCALECE DAC enables complementary solutions for carbon dioxide
reduction and removal from the atmosphere
CARBON DIOXIDEREMOVAL

LOW CARBON INTENSITYFUELS & PRODUCTS

ATMOSPHERE

ATMOSPHERE
CO2

WATER
RENEWABLE
ELECTRICITY
NATURAL GAS*

* In early plant deployments

AIR

AIR

AIR

LOW CARBON
INTENSITY FUELS& PRODUCTS

DAC

DAC

CO2
CO2

(ATMOSPHERIC +CO-CAPTURED CO2FROM ANY NATURALGAS USE)PERMANENT GEOLOGIC
STORAGEWATER
RENEWABLE
ELECTRICITYPRODUCTSYNTHESISCLOSED-LOOP
EXISTING EQUIPMENTMEGATONNE SCALE​DEPLOYABLE GLOBALLY
22 PATENTS / 36​ PENDING

CO2(>99%)

Atmospheric andco-captured CO2
from natural gas use

CO2(~0.06%)CO2(~45%)

CO2(~2%)

Percentages represent CO2 weight concentration

FOUNDING
13 years development; 7 years pilot plant operationscommercial DAC plant2024 1st commercial DAC plant expected operational

INTELLECTUAL PROPERTY
22 issued patents & 36 applications in 15 patentfamilies in key jurisdictions

WORLD CLASS PARTNERSHIPSCARBON ENGINEERING | COPYRIGHT © 2022

Can address any CO2 emission,from any place and point in time

MILESTONES
2015 DAC pilot plant built2017 AIR TO FUELSTM pilot plant built
2021 Innovation and R&D centre built
2022 Construction scheduled for Q3 for 1st

1 2

Pioneering large
scale Direct Air
Capture (DAC)Large scale deployment
underway

AIR TOFUELSTM
PLANT
UK & NORWAY
DAC:
ENGINEERINGUNDERWAY

US DAC-1:
CONSTRUCTION
2022

BUILT 2015
6 years of data providing
high confidence in DAC
performance

CONSTRUCTIONCOMPLETE 2021

WORKING WITH
POTENTIAL
HIGH-CALIBER
LICENSEESCARBON ENGINEERING | COPYRIGHT © 2022

PILOT PLANT:

Planned for B.C.,
expected capacity
up to 100 million
L/y

GLOBAL

1 3

INNOVATIONCENTRE:

Expected to capture
500,000 – 1 million
tonnes CO2/yeach

ENGINEERINGUNDERWAY

Up to 1 million tonnes
CO2/y with 250,000+
hours of engineering
complete

R&D / advanced development
centre representative ofcommercial plants

Artist renderings shown

Working with CE

 Build a new carbon economy business – Licensing CE’s technology
is an opportunity for progressive businesses looking to enter the highgrowth markets of carbon dioxide removal and low-carbon intensity
fuels.

COPYRIGHT © 2021 - CARBON ENGINEERING

 Advocate for net-zero aligned policy – Including DAC and carbon
removal in policy can help lower the costs of decarbonizing while
fostering job creation and investment.

1 4

 Decarbonize your organization – Businesses can neutralize hard-toabate emissions with permanent carbon dioxide removal (CDR) in theirjourney to net zero by purchasing CE-powered DAC and sequestration.
Leading companies including Airbus, Shopify, BMO and ThermoFisher
Scientific have already pre-purchased CDR from the CE Network.

DAC, a decarbonization tool

1 5

CARBON ENGINEERING | COPYRIGHT © 2022

Why should organizations include DAC-products in theirsuite of solutions to get to net zero?
 Carbon dioxide removal (CDR) is required to get to net zero to address residual
emissions, those being the remaining emissions when an organization has
reduced emissions as much as possible
 Direct air capture and sequestration provides a measurable, scalable andsecure form of CDR to ensure an organizations emissions are neutralized
while capping the costs of decarbonization
 Additionally, CE’s AIR TO FUELS™ technology can power your existing fleet
with low carbon intensity synthetic fuel – made from air, water, and renewableenergy. AIR TO FUELS™ facilities can deliver industrial quantities of clean fuels
to meet your organization’s needs
 Learn more about CE’s CDR with this short video
 Come talk to our CDR experts to learn how CE’s products can be a part of yourdecarbonization roadmap. Email us at business@carbonengineering.com

Founding customers ofpermanent carbon
removal through CE DAC
are playing a critical rolein kickstarting theindustry

Good carbon policy supports economic growth
Reducing costs, creating jobs
 Lower costs of CO2 abatement“Achieving Net Zero
could turn anexistential risk into thegreatest commercial
opportunity of ourtime.”Mark Carney, UN Special Envoy
on Climate Change Job creation in the new carbon economy - studies from the Rhodium Group haveestimated that DAC plant deployments have the potential to create thousands of jobs,
helping to support a just transition for labour forces¹
 Attract investment/GDP increases – when the right policies exist, DAC can serve
decarbonization markets, creating significant revenue for Mt-scale plants and diversify
economies. DAC plants also attract large sums of capital to finance the deployments
 Regulations to support DAC already exist – leading governments have created policy
to support DAC with different mechanisms to meet the needs of their jurisdictions. Most
notably, the United States’ Inflation Reduction Act could be a catalyst for DAC production
Sources:
1. Rhodium Group, Capturing New Jobs

CARBON ENGINEERING | COPYRIGHT © 2022

 Permanent CDR is already more affordable than reducing gigatonnes of society’s
hardest-to-abate GHG emissions on a cost of abatement basis (see next slide)1 6

 Permanent carbon dioxide removal (CDR) through DAC to sequestration is a costeffective and scalable solution that can be used to neutralize an equivalent amountof emissions (i.e., net zero), providing a powerful tool for the most hard-to-abate
sectors as well as financial certainty

DAC can cap the cost of decarbonization
5-10 Gt/yr

DAC provides an economic solution for distributed & hard to abate emissions

Emissions with abatement cost>$300/tonne

1,000

Carbon abatement cost (US$/t CO2eq)

900>10 Gt/yr

800
700

Emissions with abatement cost>$100/tonne

600
500

$Trillions/yr

400

DAC near term 1

300
200

Potential cost advantage over alternative
solutions to achieve Net Zero

DAC at $100/tonne

100<$100/tonne

0
0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

50

-100
-200

52

US DOE ‘Carbon Negative Shot’ statedlong-term program goal

Cumulative GHG emissions abatement potential (Gt CO2eq)
Power generation

Transport

Industry

Buildings

Agriculture

Non abatable

Carbon abatement costs based on currently available solutions; data from Goldman Sachs, Carbonomics, November 2021
1. DAC cost range shown based on current cost estimate for liquid sorbent DAC from McKinsey, June 2021, How negative emissions can help organizations meet their climate goals, andis aligned with Oxy’s announced 2025-2030 cost expectations for commercial deployments

1 7

CARBON ENGINEERING | COPYRIGHT © 2022

DAC deployments can create jobs, attract investment andgrow revenues

existing industry
 Each 1Mt DAC plant: was estimated to support~3,500 jobs, including ~300
steady-state jobs1
 could earn USD billions inrevenue over 30-year plant life could see the DAC supply chain
stimulate domestic industries(e.g., construction, materials)
1: https://rhg.com/wp-content/uploads/2020/06/Capturing-New-Jobs-Employment-Opportunities-from-DAC-Scale-Up.pdf
2: Graph reproduced from above report based on Rhodium group analysis, and presented here for illustrative purposes – actually varies vary depending on local conditions and project specificities.

CARBON ENGINEERING | COPYRIGHT © 2022

DAC technology overlap heavily with

1 8

 Skills needed to build and operate

DAC Policy Primer
Why do we need policy? Public policy is required to value the carbon removal that DAC enables,
create revenue streams, overcome financing barriers related to upfront capital needs andFinancial Support

Market Facilitation

 Low carbon fuel standards – mandate
carbon intensity reductions fortransportation fuels in a market-based
trading system. Including DACS as aneligible pathway for credits creates arevenue path. DACS eligibility can beapplied to other compliance markets
like emissions trading systems andinternational transport (e.g., ICAOCORSIA).

 Tax credits – provide a direct incentive

 CO2 storage protocols – provide theguidance and legal environment toallow operators to safely store CO2 andmeet required regulations

 Direct procurement – governments candirectly purchase DACS to address
their own emissions.

through production or investment tax
credits to improve project economics.

 Project-based support – Direct funding
for DAC projects and/or hubs cancatalyze the market and centralize

activity with multiple market
participants.

 Capacity targets – signal government
support of DACS by establishingspecific objectives over time.

Jurisdictions that have developed supportive policy environments are attracting project interest and investment

CARBON ENGINEERING | COPYRIGHT © 2022

Market Creation

1 9

development timelines, and ultimately, create viable long-term markets.

Inflation Reduction Act & DAC Hubs
The largest public investment for US clean tech

 For Direct Air Capture and Storage:
 45Q Carbon Capture Tax Credit increase from $50/tonne to up to $180/tonne for standalone
sequestration
 Inclusion of direct pay for the production year + next four years until 2033, increasing thefinanceability of the program Supporting related industries – notably, hydrogen production, renewable energy and sustainableaviation fuel (SAF) Accelerating DAC Hubs – the US DOE is deploying $3.5B over the next five years to create four
DAC hubs each capable of capturing and storing at least 1Mt of CO2 per annum

CARBON ENGINEERING | COPYRIGHT © 2022

 Significant capital deployments – providing $369B for carbon capture and storage, zero carbon
power generation, transportation and emissions reductions power

2 0

 The Inflation Reduction Act (IRA) – passed into law this August and is the largest climate-relatedbill in the United States’ history

The opportunity to lead on climate
Bringing scalable and affordable decarbonization solutions to market

Ongoing support:
 Compliance market support
 Voluntary market access Policy assistance andadvocacy
Worldwide Carbon Pricing Momentum

National commitments – annual emissionsof countries with net-zero commitments:

Source: https://eciu.net/netzerotracker

LICENSE LEADING DAC TECHNOLOGY – A TURN-KEY SOLUTION FOR THE CLIMATECARBON ENGINEERING | COPYRIGHT © 2022

CE brings world-classknowledge on top oftechnology solutions and isready to contribute both at
the project-level andthrough ongoing support

Project-level assistance: Proven technology
 Early-stage engineering Technical assistance intechnology, construction
experience, supply chain, etc.

2 1

License CE technology andleverage the expertise of a
DAC leader.

Turnkey solutions for net-zero infrastructure deployment
Franchise-like
deployment platform

Global deployment team Together with our global deployment team,
we deliver full turnkey solutions toprospective plant owners
 We provide the license for our DAC solutions
and the experienced implementation team tobuild and operate plants
 Ongoing R&D program targeted at optimizing
DAC technology in real-world operations andreducing the cost of capture per tonne Global leader in development
and operation of CO2
handling & storage projects(400MtCO2 sequestered)

Regional project partners
 We work with regional partners
bringing complementary expertise inlocal policy, regulatory & permitting,business, and financing capabilities
ANNOUNCED REGIONALPARTNERS

 Track record in large project
execution
 Transitioning towards a
future as a carbon
management company

 Leading global provider ofproject and asset services inenergy, chemicals andresources 47,000 employees, operating
in 54 countries

Artist rendering

2 2

CARBON ENGINEERING | COPYRIGHT © 2022

Get in touch
2 3
CARBON ENGINEERING | CONFIDENTIAL

CARBON ENGINEERING | COPYRIGHT © 2022

business@carbonengineering.com

2 3

If you’re a business,government or institution
working towards reduced, netzero, or even net negativeemissions, we can help.
Contact us at:

MORE INFORMATION CAN BE FOUND AT:
www.carbonengineering.com

business@carbonengineering.com@CarbonEngineer@carbonengineeringltd

Carbon Engineering Ltd.

CarbonEngineering

COPYRIGHT © 2021 Carbon Engineering Ltd. All Rights Reserved.