cst october 2015 v3 - co2 solutions€¦ · 10 • solvent regeneration using heat outside of steam...
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Forward-looking Statements
All statements in this presentation that are other than statements of historical facts are forward-lookingstatements which contain our current expectations about our future results. Forward-looking statementsinvolve numerous risks and uncertainties. We have attempted to identify any forward-looking statements byusing words such as “anticipates”, “believes”, “could”, “expects”, “intends”, “may”, “should” and othersimilar expressions.
Although we believe that the expectations reflected in all of our forward-looking statements are reasonable,we can give no assurance that such expectations will prove to be correct. A number of factors may affect ourfuture results and may cause those results to differ materially from those indicated in any forward-lookingstatements made by us or on our behalf. Such factors include our early stage of technology development; ourneed for capital to finance necessary research and product development; our ability to attract and retain keyemployees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the tradingprice and volume of our stock; competition from other providers of similar products and services; and otherunanticipated future events and conditions. For further information concerning risks and uncertainties thatmay affect our future results, please review the disclosures as may be contained from time to time in our filingswith SEDAR. Other than as required by applicable securities laws, we undertake no obligation to publiclyupdate or revise any of our forward-looking statements, whether as a result of changed circumstances, newinformation, future events, or for any other reason occurring after the date of this presentation. This
presentation does not constitute an offer to sell or solicitation of an offer to buy securities in any jurisdiction.
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• Leader in the field of enzyme-based CO2 capture
• $50 million invested to date
• 22 employees, including 7 PhDs
• 48 issued and 40pending patents
• Entering commercial phase
• Publicly traded on TSX Venture Exchange (Symbol: CST)
About CO2 Solutions Inc.
But it`s not all bad
An essential commodity for many industrial processes
Greenhouses
Water Treatment
Pulp and Paper Food and
Beverage
Enhanced Oil
Recovery
Building MaterialsAlgal
Biofuels
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We Address the Good and the Bad
Climate Change Mitigation
Capture and sequestration of CO2 from large emitters
• Power Stations
• Oil & Gas
• Cement and Metal Industries
CO2 for Commercial Reuse
Addressing CO2 supply opportunities driven by:
• Cost
• Availability
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Current solution is inefficient
• High costs• High operating costs due to steam-fed
regeneration requirement• $60-90/tonne of CO2 for flue gas application(1,2)
• Operational and environmental problems(3)
• Degradation and stability issues• Extensive flue gas pre-treatment required• Toxic aerosol emissions• Solvent losses• Generation of waste products
Sources:1) http://ccemc.ca/wp-content/uploads/2012/12/C101033-HTC-DEV-JA-03-001-1-R1-+-FEED-REPORT-CCEMC.pdf, Page 19 (~$70/tonne cost)2) https://www.netl.doe.gov/File%20Library/Events/2014/2014%20NETL%20CO2%20Capture/A-Bhown-EPRI-CO2-Capture-RD-EPRI.pdf, Page 63) http://www.sciencedirect.com/science/article/pii/S1750583614001777
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The CO2 Solutions Technology
Industrial lung for carbon captureM I M I C K I N G N A T U R E U S I N G C A R B O N I C A N H Y D R A S E ( C A )
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WASTE HEAT
FOR
REGENERATION
ENERGY
CSI-Proprietary Carbonate Process
E n z y m eE n z y m ePROPRIETARY
ENZYME
PROPRIETARY
ENZYME
ScrubbedFlue Gas
Lean Solvent
Pure CO2 (>95%) forCompression, Storage and Reuse
Steam
CO2StripperColumn
CO2AbsorberColumn
Rich Solvent
Flue Gas with CO2
NO
AEROSOLS
LOW COST
SOLVENT30-50%
COST
30-50%
COST
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• Solvent regeneration using heat outside of steam cycle• Low parasitic load; minimal boiler upgrade
• Environmentally benign solvent• No degradation products or aerosols• Ease of environmental and waste management
operations
• Larger net GHG reductions than amines• Benefit of using low-grade heat
• Low total cost of capture• Economics more favourable relative to
Enhanced Oil Recovery opportunities• In line with carbon pricing• 10 years ahead of U.S. DoE cost target
Overall Benefits of CSI Technology
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CO2 produced suitable for commercial use
• 99.5% CO2 purity achieved (dry basis) by independent lab verification with only O2
and N2 remaining to be removed
• Meets requirements for food and beverage use (ISBT)1 without expensive downstream purification
• Exceeds Enhanced Oil Recovery (EOR) and other reuse application purity requirements
• Eliminates typical additional cost of post-capture purification
1http://www.bevtech.org/
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Carbon ReuseNon-regulated driven applications
CO2 GAS USE (an essential input for many industrial processes)
ENHANCED OIL RECOVERY
Mineral carbonation Greenhouses
Waste treatment Bio-plastics Beverages
Building materials
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Commercial Opportunities (active discussions)
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CO2 for industrial
re-use
CO2 for industrial
re-use
GreenhousesGreenhouses
Carbonated
beverages
Carbonated
beveragesAlgae for
biofuel
Algae for
biofuel
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Sources of CO2
Major opportunity for CCS if/when:
a) CCS cost lower than carbon pricing
b) Solution is environmentally friendly
Source: International Energy Agency (IEA) GHG Program, 2011
Stationary Sources
49%
Transportation23%
Residential8%
Other small sources
20%
Sources of CO2 Emissions
Stationary Sources Transportation Residential Other small sources
Stationary sources of CO2 with emissions > 100,000 tpa
Sector Number of sites CO2 emissions (Mtpa)
Power generation 5,148 11,612
Cement 1,256 1,049
Oil & Gas industry 768 873
Metals production 469 699
Other 588 432
Total 8,229 14,665
Strategy
Three-tier strategy
• De-risking• Continued Innovation• Commercialization
1http://www.bevtech.org/
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EERC Testing Program
~1 tonne per day
• Premier CO2 capture testing facility in North America supported by U.S. Department of Energy
• Comprehensive testing completed January 2015
• Results show $39/ ton cost of capture,
beating DoE cost targets by 10 years
De-risking – technology scale-up
Demonstration project~10 tonnes per day
• Successfully operated 1,200 hours
• Has fully validating technical premise
• Full report including costing to be published following independent 3rd party review
• Supported by $5.5M government funding
• Final step in pre-commercial scale-up
Positions CO2 Solutions’ technology for commercial deployment
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10 tonne/day demonstration
• Located near Montreal
• CO2 capture from flue gases of natural gas fired boiler (~8.5% CO2 content)
• Uses Company’s proprietary enzyme, 1T1
• Capture operations began June, 2015
• > 1,200 operating hours to date
• Stripping uses hot water (80-85ᵒC), not high-cost steam as currently technologies require
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Environmental performance & operation
• No solvent degradation observed
• No solvent makeup required
• No waste products generated
• Current operation with day shift only• To support R&D activities• Normal operation does not require full-
time operators; estimation is 0.25 FT operator, even at large capacity
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Fine tuning
• Optimize configuration to validate engineering improvements
• Testing of solvent additive for improved performance in both absorption and stripping
• Additional stress testing
• Measurement of contaminants absorption kinetics
• Total work will bring operations to ~2,500 hours
• Detailed energy balance and techno-economics being developed from operational data expected to confirm the lowest capture cost for solvent-based capture technology
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• Exclusive collaboration with GasTran Systems (GTS) of Cleveland (OH) - leader in RPB technology
• Process intensification in action
• Shears solvent into extremely fine droplets
• Mass transfer is orders of magnitude than higher packed column
• Enables maximum performance from enzyme
• RPB is proven commercially in other gas-liquid applications at scale• Beverage deaeration• Chemical production
• RPB never used for CO2 capture previously because of slower kinetics of conventional amine solvents
Next: Rotating Packed Bed (RPB)
RPBs in Use at Dow Chemical Replacing Large Packed Tower
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RPB vs. Packed Column
90% CO2 Capture from Natural Gas-Fired Boiler Flue Gases; 300 tonnes/day CO2 captured
Target CO2 capture cost <$30/tonne incl. compression
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Path to scale-up
Tonnes per
day
1 10 1 10 30 300
Equipment Packed column Packed column RPB Packed Column RPB RPB
Location EERC (ND) Valleyfield (QC) EERC (ND) To be announced St-Félicien (QC) Western Canada
Project budget and/or CAPEX
n/a Project = $8.9M, of which CAPEX =
$3.0M
$640K $3M $7.4M $30M
Partners EERC Husky EnergyStatoilCCP3
EERC To be announced Resolute ForestProducts + Serres
Toundra
TBD
GovernmentSupport
DOE (via EERC) NR Can ($4.7M) CCEMC (Alberta)
($0.5M)
DOE (via EERC) / Pending from NR
Can
In discussions with EDC
Pending fromSDTC (Canada)
and Québec government
Pending fromCCEMC and
Québec government
Operating Schedule
Dec ‘14 – Jan ‘15 May – Oct ‘15 Q1 ‘16 Q3 ‘16 CommissioningQ2 ’17
CommissioningQ1 ’18
Status Completed. Results
announced.
Completed on Oct 27. Final
report in November.
Project launched. In negotiationswith prospective
commercialpartner.
In discussions for Québec
governmentsupport (grant
and debt)
In discussionswith prospective partners (mostlyCanadian O&G)
Commercial Project
No No No Yes Yes Yes
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Business Models
� Low-cost provider of CO2� Finance/build/operate CO2 plant on emissions site� Sell captured CO2 via take-or-pay agreement� Discussions on-going with potential collaborators
� Low-cost provider of CO2� Finance/build/operate CO2 plant on emissions site� Sell captured CO2 via take-or-pay agreement� Discussions on-going with potential collaborators
� Technology license� Provide engineering design and customer support� In exchange for:
- License- Royalties – one-time and/or per CO2 captured- Enzyme supply agreement
� Technology license� Provide engineering design and customer support� In exchange for:
- License- Royalties – one-time and/or per CO2 captured- Enzyme supply agreement
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CST (TSX-V)
Stock Price (09-18-2015) $0.185
52-Week Low/High $0.07 - $0.31
Ave Daily Volume (3 mo.) ≈500,000
Shares Outstanding 127,611,353
Fully Diluted Shares 140,000,000
Insider Holdings (est) 40%
Market Cap $23,600,000
Capital invested $50,000,000
Revenues Pre-Revenue
Cash & Equivalents $2,426,433
Gov’t. Receivables $732,322
Tax credits receivable $599,824
Total Assets $5,181,000
Total Liabilities & Debt $2,171,000
Total Equity (net) $3,010,000
Financial Statement Information in $CAD as of June30, 2015
Marked increase in stock
value and liquidity over
past 12 months
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Robust Patent Portfolio
49 ISSUEDBROAD PATENT PORTFOLIO FOR USE OF CARBONIC ANHYDRASE IN CANADA, U.S., EU, CHINA, AUSTRALIA AND OTHER MARKETS
40 PENDING*
vs. 13 and 19 respectively in 2008
*as at June 30, 2015
Areas of Carbonic
AnhydraseCO2 Capture Application
SOLVENTSAminesCarbonatesAmino AcidsCombinations
PROCESSESPacked Tower
Spray ScrubberBubble Column
Universal
INDUSTRIAL SECTORSPowerSteam‘Drop-in’ Applications
ENZYME UTILIZATIONSoluble
Particle-BasedAnalogs
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Management TeamEvan PricePresident & CEO• 30 years management leadership including in advanced technology• Was CEO of Domosys Corp., a power line communication provider whose technology was acquired
by Analog Devices in 2009• Was Chairman of CO2 Solutions from 2008 to 2013
Louis Fradette, Ph.D. CTO• 20 years industry/academia
experience including oil refining, bitumen sands treatment, and ore processing
• Professor of Chemical Engineering, École Polytechnique de Montréal
Jonathan A. CarleyVP Business Dev.• 15 years business development in
startups, notably in biofuels
Sylvie Fradette, Ph.D. VP R&D• One of key architects of technology
since 1997
Thom Skinner CPA, CASVP Finance and CFO• 30 years experience in financial services,
pharmaceutical, life sciences and biotech sectors including mergers and acquisition and capital raising
• Professor of Finance, Laval University, Quebec, QC
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Board of Directors
Glenn R. Kelly
Chairman of the Board� Former President & CEO of the Corporation� Recognized leader and energy industry executive� Currently President and CEO of Orbite Aluminae, a
Canadian cleantech company in alumina extraction technologies.
Jocelyn Proteau � Former Chairman of the Board and Chief
Executive of the Fédération des Caisses populaires Desjardins de Montréal-et-de-l’Ouest-du-Québec.
� Chairman of the Board of BTB Investment Trust�Director of CO2 Solution since 2007
Evan Price
President & CEO, CO2 Solutions� Former Chairman of the Board, CO2
Solutions from 2008 to 2013
Robert Manherz � Principal, Dundurn Capital
Partners Inc.� Director of CO2 Solution
since 2008.
Kimberley Okell � Lawyer, DS Welch Bussières� Director of CO2 Solution
since 2001
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