Electrochaea: Opportunity, Technology, ExecutionMich Hein, PhD

CEO, Electrochaea GmbH

Tokyo, November 2016

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Electrochaea Executive Summary

Opportunity– Conversion of low cost energy and carbon dioxide into natural gas, leveraging existing

infrastructure

– Decarbonization of power generation, transportation and industrial processes

Technology– Proprietary, simple and robust biocatalytic methanation system

– Dynamic and scalable process to meet a broad range of conversion and storage

applications (1 to >100 MW)

Execution– Expert team with proven track record

– 1 MWe commercial scale operation commissioned in Q1 2016, 10 MW project identified

– First product revenues in 2016

Funding– Consortium of venture and strategic investors with 1:1 non-diluting capital

Electrochaea’s vision is to become the world’s leading technology provider in power-to-gas energy storage

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Biological Methanation

Excess renewable power

Grid congestion

CO2emissions

Charging the natural gas grid

Established gas grid

Decarbonization

Need for renewable gas

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BioCat Process – Principle & Operating Parameters

Electrolyzer

CO2/BiogasCH4

HeatOxygen

PowerWater

Heat

H2

Other H2 Source

Bioreactor(proprietary)

Chemical Reactions:1) Electrolysis 4H2O 4H2 + 2O2 + Heat2) Methanation CO2 + 4H2 CH4 + 2H2O + Heat

Net Reaction CO2 + 2H2O CH4 + 2O2 + Heat

Operating Conditions:Temperature 62°C, Pressure 1 to 10 bar(a)

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Power-to gas market of 1.7 bn US$ until 2024

Key driver:

Increasing number of

Wind & PV installations

Target market share target of 25%, projected volume of 425 mn $

MarketGrid-scale storage market driven by increase of renewables

Installed revenue, Energy Storage for Wind and Solar Integration, World Markets: 2015-2024

Additional growth driver: Carbon capture looking for CO2 sink

Operation of fossil power plants requires carbon capture to meet CO2 targets

Market for CCS of 8 bn US$ in 2021 (MarketsandMarkets 2016)

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Opportunities for process integration

Source: Adapted from ZSW, Erneuerbares Methan aus Ökostrom, April 2012

Suitable CO₂Source Biogas

Fermentation off-

gas

Oxy combustion

flue-gas

Industrial

Processes

Other (landfill,

atmospheric)

Uses Electricity

Heat

Transportation fuel

Chemical

feedstock

Carbon Dioxide

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Rapid technology de-risking and scale-up

2006 - 2010

2011 - 2012

2013

2014 - 2016

In Dr. Mets’ laboratory

at the University of

Chicago

Biocatalytic capability

test with raw biogas

Process demonstration in a

5m³ stirred tank bioreactor

using raw biogas, Foulum (DK)

Preparing for market entry with a

commercial-scale demonstration

unit, using an optimized reactor,

Avedøre (DK)

Power

Input

n/a

1 kW

50 kW

1 MW

Rapid technology de-risking and scale-up

Commercial-Scale Field Trial

Pre-Commercial Field Trial

Lab-Scale Field Trial

Basic Research

http://www.biocat-project.com

2014 – 2016

2011 -2012

2006 - 2010

2011 - 2012

2013

2014 - 2016

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Technology and Product

BioCat: Biological methanation system in Megawatt scale

Conversion of excess renewable power into biomethane

Proprietary Bio-Catalyst (4 patents), in-house system design & operation

Scaling: to 10 MW and 50 MW systems and regionally

Competitive Advantage: dynamic operation, high tolerance to impurities

BioMethane50 Nm3/h

50 Nm3/h CO2

(from Biogas)

200 Nm3/h H2

Heat320 kW

1 MW pilot plant in Avedøre (DK)

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System performance and scaling

1 MWe plant 50 MWe plant

The system is envisioned to be scaled up to 50 MWe

Electrical power input 1MW, correspondingto 200 Nm³/h of Hydrogen

CO₂ 50Nm³/h

CH₄ 50Nm³/h500 kW

Electrical power input 50MW, correspondingto 10000 Nm³/h of Hydrogen

CO₂ 2500Nm³/h

CH₄ 2500 Nm³/h25 MW

Heat~ 300 kW Heat

~15 MW

Flow rates refer to a system including electrolyzer

• A 50 Mwe biomethanation system is capable of

More than 13000 Householdsconsumption per year

• Storing 400GWh/a of electrical energy *

• Achieving a CO2 sequestration of 37000 tons/a * Emissions of ~19930 cars per year

*Assumptions: • Heat and electricity for one year 3.200kWh in a household with 4 person in Germany (2013)• 132,6 gr/km emission per car and 14.000 km driving average km per year in Germany (2014)• 8000h/a of operation, electrolysis included

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Mich Hein, PhDManaging DirectorCo-founder and managing partner

at Nidus PartnersPassionate entrepreneur Raised $50 Mio for start-ups

Markus Forstmeier, PhDVP Business Development15 years of experience in

renewable energy and water treatment spaceClosed major partnerships and

contracts >$25 Mio

Executive Team

Doris Hafenbradl, PhDCTO20 years of experience in biotech

and pharmaceutical industriesExpert in hyperthermophilic

archaea

Fernando KeuchenHead of Engineering15 years of experience in project

management in the energy industryCommissioned >10 GW Power

Generation

Strictly Confidential 11

Focus on key markets

Tap multiple revenue streams

• Payments for feasibility studies on special feed gases

• Fee for initial engineering of BioCat core and interfaces

• Royalties for utilization of proprietary bio-catalyst

• Operation & maintenance fees

What are the next steps?

• Expand BioCat plant size to grid scale at 10 MW and 50 MW

• Secure contracts and financing to execute first grid scale project

• Expand technology and IP advantage

• Reduce overall system cost

• Engage with industrial partners to identify first of a kind 50 MW project

Business model and growth strategyBe the key technology provider for biological methanation

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Current and upcoming projects

STORE&GO project in Switzerland

– Existing demo site with electrolysis, operated by Regio Energie Solothurn

– Electrochaea responsible for delivery of biomethanation system

– System to be operational end of 2017

Demonstration BioCat reactor with SoCal Gas and NREL in Colorado (USA)

JDA with Mitsubishi Hitachi Power Systems Europe

Focus on Multi-MW BioCat system for industrial off gases

JV with Hungarian Utility MWM‘s incubator

Project development for a 10 MW BioCat system to be installed in Hungary

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Interest in Japanese market opportunities

What are major market drivers?

– CO2 capture/reuse

– Energy Storage

– End product markets, product pricing (e.g. CNG?)

What is the Japanese market for biological methanation? (in t CO2 or MWe )

What are the key barriers to market entry for biological methanation?

Competitors for CO2, capital, power?

Minimum size to be an attractive market solution

We are looking forward to discuss with you.

Biological methanation

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Partners and Investors

Electrochaea GmbHSemmelweisstrasse 382152 Planegg, Germanyhttp://www.electrochaea.com

Markus Forstmeier, PhD, VP BDmarkus.forstmeier@electrochaea.com

Bronze medalist 2016 in early stage category