Technology, projects and policy to support costeffective net zero
IEEJ: April 2024 ©IEEJ2024………………………………………………………………………………………………………………

COPYRIGHT © 2024

Commercial-scale Direct Air Capture

PRESENTED BY:

Adam Baylin-Stern……………………………………………………………………………………………………………………………………………………………………………………………

COMPANY:

Carbon Engineering ULC……………………………………………………………………………………………………………………………………………………………………………………………

DATE

APERC-IEEJ Joint Symposium, Japan, April 2024……………………………………………………………………………………………………………………………………………………………………………………………

DISCLAIMERS
This presentation has been prepared solely for informational purposes. Neither Carbon Engineering nor its affiliates make any representation or

conduct its own due diligence investigation and analysis in order to make an independent determination of the suitability and consequences of anyaction. Carbon Engineering is not under any obligation to provide any recipient of this presentation with any amended, updated or replacement
information or to correct any inaccuracies herein which may become apparent.
The information provided herein contains forward-looking statements based on Oxy’s and Carbon Engineering’s current expectations, beliefs, plansand forecasts. All statements other than statements of historical fact are forward-looking statements. These statements are not guarantees of future
performance as they involve assumptions that may prove to be incorrect and involve risks and uncertainties. These statements speak only as of the dateof this publication and circumstances may have changed since then. Factors that may cause actual results to differ from expected results or otherwise
affect Oxy’s and Carbon Engineering’s respective businesses can be found in Oxy’s filings with the U.S. Securities and Exchange Commission (SEC),
which may be accessed at the SEC’s website, www.sec.gov. The information included herein is not necessarily material to an investor in Oxy’ssecurities. Oxy and Carbon Engineering do not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new
information, future events or otherwise.

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information that may be required or desirable to evaluate all of the factors that might be relevant to a potential action, and any recipient hereof should

2warranty, express or implied, with respect to the information contained in this presentation. This presentation does not purport to contain all of theWhy are we here? The need for true net zero.
NET ZERO EMISSIONS –CARBON DIOXIDE REMOVAL (CDR) –“ Net zero emissions are achieved when anthropogenic“Anthropogenic activities removing CO2 from the atmosphere anddurably storing it in geological, terrestrial, or ocean reservoirs, or inproducts. It includes existing and potential anthropogenic enhancementof biological or geochemical sinks and direct air capture and storage butexcludes natural CO2 uptake not directly caused by human activities.”

emissions of GHG to the atmosphere are balanced byanthropogenic removals over a specific period.”Intergovernmental Panel on Climate Change (IPCC),
SR15 Global Warming of 1.5˚C

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IPCC, SR15 Global Warming of 1.5˚C

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What is carbon dioxide removal?
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What is net zero?

DAC can cap the cost of decarbonization~10 Gt/yr

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

Emissions with abatement cost>$400/tonne

1,400

Carbon abatement cost (US$/tnCO2eq)

1,300
1,200
1,100

>20 Gt/yr

1,000
900

Emissions with abatement cost>$100/tonne

800
700
600
500

$Trillions/yr

First Plant Cost of Capture1400

Potential cost advantage over alternativesolutions to achieve Net Zero

300
200

DAC at $100/tonne

100<$100/tonne

0-100-200

US DOE ‘Carbon Negative Shot’ statedlong-term program goal
02468101214161820222426283032343638404244464850525456

GHG emissions abatement potential (Gt CO2eq)
Power generation (coal switch to gas & renewables)

Transport (road, aviation, shipping)Industry (iron & steel, cement, chemicals and other)

Buildings (residential & commercial)

Agriculture, forestry & other land uses (AFOLU)

Non-abatable at current conservation technologies

1 First Plant Cost of Capture as reported on November 8, 2023 – Oxy Third Quarter Earnings Call.

Cost of Capture includes capital, operating expenses, transports and storage costs and excludes cost of financing.

Carbon abatement costs based on currently available solutions; data from Goldman Sachs, Carbonomics, November 2023

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4CARBON ENGINEERING | COPYRIGHT © 2024

CE DAC enables complementary solutions for reduction and removal
CARBON DIOXIDEREMOVAL

LOW CARBON INTENSITYFUELS & PRODUCTS

ATMOSPHERE

CO2AIR

AIRAIRWATERZERO EMISSIONELECTRICITY
NATURAL GASATMOSPHERE

LOW CARBON
INTENSITY FUELS& PRODUCTSDACDAC

CO2CO2(ATMOSPHERIC +CO-CAPTURED CO2FROM ANY NATURALGAS USE)WATER
ZERO EMISSIONELECTRICITYPRODUCTSYNTHESISSECURE GEOLOGIC
STORAGE
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IEEJ: April 2024 ©IEEJ2024

CLOSED-LOOP
EXISTING EQUIPMENTMEGATONNE SCALE​DEPLOYABLE GLOBALLY
27 PATENTS / 41 PENDING

CO2(>99%)

Atmospheric andco-captured CO2
from natural gas use

CO2(~0.06%)

CO2(~45%)

CO2(~2%)
Percentages represent CO2 weight concentration

Why carbon removal from DAC?

SCALABLE
DAC removals are more scalable and more
affordable than SAF and other removals,
given there are virtually no feedstock
constraints

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CO2 removal via DAC can bemeasured, monitored and verified
for transparent accounting

COMPLIANT
Working with ICAO and Voluntary Carbon
Registries to ensure 1PF CDRs will be
Eligible Emissions Units (EEUs) under
CORSIACARBON ENGINEERING | COPYRIGHT © 2024

CO2 captured from the air is securely stored
in the geosphere for 1000+ years, using
proven technology we’ve mastered overdecades of execution experience

MEASURABLE
AND VERIFIABLE

7DURABLEIEEJ: April 2024 ©IEEJ2024

GLOBALDEPLOYMENTINNOVATIONCENTREPILOT PLANTBUILT 2015

Piloted elements of CE’s
DAC technology.

BUILT 2021

R&D platform for technologicaladvancements to incorporate
into commercial plants.

CONSTRUCTION
UNDERWAY

Expected to be largest inthe world.

Site enables potential
for 30 MTPA DACCARBON ENGINEERING | COPYRIGHT © 2024

STRATOSPERMIAN SITE

ENGINEERINGUNDERWAY

8SOUTH TEXASDAC HUB

Advancing feasibility
studies and plant designsin other locations acrossthe globe

CarbonEngineering’s
Innovation Centre

 Run-replace-run operating
mode

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 Built in 2021, the CEIC iscurrently supporting
design and engineering forcommercial facilities thatutilize CE’s technology

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9 A dedicated DAC R&D
facility enabling rapid
iteration, continued
optimization andinnovation for insertion
into commercial facilities
worldwide

9STRATOS Permian Basin, Texas, US
 Expected to capture 500kt/year when fully operational
 Site prep and early construction started Q3 2022
 Commercial operations targeting mid-2025

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STRATOS, THE FIRST COMMERCIAL SCALE PLANT TO USE CE DAC, IS UNDER CONSTRUCTION BY 1POINTFIVEIEEJ: April 2024 ©IEEJ2024

1PointFive is building the world’s largest DAC facility
Designed to capture up to 500,000 tonnes of CO2 annually once fully operational

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Policy is fundamental to achieve climate relevant CDR volumes
Supportive policies for DAC/CDR are needed to: Create climate investment and viable long-term markets
 Create jobs and transition opportunities
Examples include: Market creation policies (e.g. low carbon fuel standards; direct procurement; CORSIA) Financial support policies (e.g. output-based subsidies; tax credits; project-based support) Market facilitation policies (e.g. CO2 storage protocols; capacity objectives, market linkage)

Jurisdictions with supportive policy environments are catalyzing project investment
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 Value the measurable, immediate, and long duration carbon removal that DAC provides

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 Scale durable CDR markets to the estimated needs by mid-century

THANK YOU
1 3

Policy and Engagement LeadCarbon Engineering
abaylin-stern@carbonengineering.com

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ADAM BAYLIN-STERN

Contact: report@tky.ieej.or.jp