JANUARY 2017

Carbon Capture 2.0

WHERE THE ECO₂NOMICS MAKE SENSE

Confidential

Carbon Capture 2.0 INVENTYS IS

“

”

Inventys is developing

technical advances that should

dramatically reduce the cost of

carbon capture so that it can be

deployed worldwide. If

successful, our technology

could revolutionize carbon

capture.

— Inventys Board Member

Dr. Steven Chu,

former US Energy Secretary

and Nobel Laureate

Where novel materials meet

proprietary structured

adsorbents design and world-class

hardware 2

VeloxoTherm™ CO₂ Capture Process THREE SIMPLE STEPS

As flue gas passes through the VeloxoTherm™ Adsorbent Structure, CO₂ clings to the adsorbent while the other gases pass through.

Step 1: Adsorption

After the structured adsorbent becomes saturated with CO₂, it is regenerated. Low pressure steam is used to release the CO₂ from the adsorbent.

Step 2: Regeneration

After the CO₂ has been released, air is used to cool the structured adsorbent, preparing it for the adsorption step and the process is started over again.

Step 3: Cooling

60 SECONDS

3

CO2 capacity under wet conditions is critical

+ Capitalized on advances in adsorbent chemistries with strategy shift in 2016

+ Energy consumption improving as expected – surpassed expectations on productivity

Breakthrough with New Adsorbents

OPEN COLLABORATION VS CLOSED R&D

3.42 0.00 1.10

0.10 1.60

0.40 0.10 0.01 0.01 0.01 0.02 0.01 0.60

8.81 0.10

7.40 0.20 0.10

3.00 7.40

6.30 11.50

1.80 2.38

9.25 12.38

8.50 19.99

10.84 10.11

0.00 10.00 20.00 30.00

Wet CO2 capacity (wt%)

Adso

rben

t Can

dida

tes

Breaking the Capital Cost Paradigm ACHIEVING A STEP CHANGE IN CAPTURE COSTS

Canadian Centre for Policy Alternatives (2015) - "SaskPower's Carbon Capture Project“; CO2 Conference (2014) - "Petra Nova Carbon Capture and Enhanced Oil Recovery Project" Greeson, D. Hagiwara, K. (2014) - Annual Summary Report "Quest Carbon Capture and Storage Project" Alberta Department of Energy

Current

Inventys SHIFTS curve

Inventys

Without shifting the capital cost curve, meeting transformative carbon capture costs targets is impossible

5

Carbon Capture Doesn’t Have to Be Expensive

WHY? • Structured adsorbents • Very compact scale • No pressure vessels • Simple process

0

50

100

150

200

250

$M

illio

ns

Cap

ital

In

vest

me

nt

(No

rmal

ize

d f

or

60

0 M

T/d

G

as-F

ire

d B

oile

r)

$millions

CAPEX FOR 600 TONNE/D GAS-FIRED APPLICATION (OTSG)

Inventys¹ Next Generation² Solvent

Recently Built³ Retrofit Project

1. Recently performed TEA on 600TPD OTSG based on Gen V adsorbent performance targets 2. From public disclosures based on 1,250 TPD OTSG application ($116MM – assumed USD) 3. From public disclosures with estimates on coal-fired power project recently commissioned at 5,000TPD

adj. for no compression Capex scale adjusted at 0.6 exponent per DOE/NETL-341/013113 on concentration adjusted flows assuming 15% CO2 for coal and 8.5% for OTSG (Dry)

NEW PARADIGM FOR CAPEX

6

Co-Storage of CO2 with EOR Using CO2 for enhanced oil recovery is a major benefit to the climate—it is a weapon against warming, not a tool for prolonged fossil fuels

PRAGMATIC APPROACHES CAN HAVE REVOLUTIONARY IMPACTS

Source: “Storing CO2 through Enhanced Oil Recovery: Combining EOR with CO2 storage (EOR+) for profit), International Energy Agency (2015)

-0.2

-0.1

0

0.1

0.2

0.3

0.4

0.5

TON

NES

CO

2 PE

R B

BL O

F O

IL

Stan

dard

Cru

de

Stor

ed th

roug

h EO

R+

INCREMENTAL EMISSIONS FOR EOR FACILITIES

NET ABSOLUTE CO₂ EMISSIONS FOR ADVANCED EOR+ IS NEGATIVE 0

20

40

60

80

100

120

140

160

180

200

OIL

PROD

’N T

O 20

50 –

Bn

bbls

120 Bn bbls

Displaced

Incremental Oil

Using CO2 for EOR does result in some incremental oil production, but mostly DISPLACES standard crude oils

7

CO2 Utilization Starts Here

-0.1

0

0.1

0.2

0.3

0.4

0.5

CO2

EMIT

TED

PER

BARR

EL O

F OI

L - t

onne

s

Stan

dard

Cru

de

Gros

s Ben

efit

Net B

enef

it

ADVANCED EOR+

Already being done on an industrial scale, economic, and capable of matching the massive scales of required CO₂ storage

Source: “Storing CO2 through Enhanced Oil Recovery: Combining EOR with CO2 storage (EOR+) for profit), International Energy Agency (2015)

0

50

100

150

200

250

300

350

400

TOTA

L ST

ORAG

E TO

205

0 - B

n to

nnes

Conventional Advanced Maximum

Total CO2 storage required by 2050 to meet IEA’s 2DS targets for <2 oC

CO2 S

tore

d by

EOR

+

8

Cheap CO₂ Unlocks Utilization CO₂ UTILIZATION

9

Time for a Rethink DEPLOYMENT OF CCS WILL NOT BE OPTIONAL IN IMPLEMENTING THE PARIS AGREEMENT

“

” — Dr. Fatih Birol, Executive Director of the International Energy Agency (2016)

Utilization EOR + Co-Storage is Utilization Near-term, large market that can match the tremendous volumes of CO2 which need to be mitigated, with acceptable economics.

Innovation Strategic shift pays off New adsorbents combined with Inventys’ technology deliver a real capture solution that truly changes economics.

Capital Have to shift the Capital Curve Meeting capture cost targets needs to change capital cost paradigm – Inventys’ changes the capital cost equation.

Strategy

Open collaboration is key! Inventys has established a world-class adsorption lab & prototyping facility—open to collaboration with new partners to continue shifting the curve.

THANK YOU Matthew Stevenson 604.456.0504 www.inventysinc.com

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@inventysinc