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October 5, 2017

Carbon Product Innovation

2- C O N F I D E N T I A L -

Slowing the rate of new CO2 emissions is no longer

sufficient to combat climate change; the state of climate

change demands a further reduction in atmospheric CO2

levels using market-based solutions

INTRODUCTION

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250

300

350

400

0-100-200-300-400-500-600-700-800

Atmospheric CO2 Levels

ATMOSPHERIC CARBON IS STILL INCREASING

Despite the continued focus on reducing incremental emissions, the collective “industrial legacy” of carbon continues to be ignored

CO2

PPM

(Par

ts P

er M

illio

n)

Thousands of Years Before Today

Today: 404 PPM

“Pre-Industrial” Level

Industrial Legacy

“INDUSTRIAL LEGACY”CO2

+ 1 PPM / Year

104 PPM∼ 800 GT

∼ 7 GT / Year

NET IMBALANCE CO2

Release +468 GT / Year Human impact, microbial respiration, plant respiration

Intake - 461 GT / Year Plants / biomass , Oceans, Soil / land

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+0°C +1°C +2°C +3°C +4°C +5°C +6°C

Global GDP

Food

Water

Coast

Ecosystems

Extreme Weather Events

Without significant CO2 reduction, severe negative impacts from rising average temperatures and increasing climate volatility are guaranteed

Falling crop yields in many areas, particularly developing regions

Small glaciers disappear 1.0-3.2B people impacted with increased water stress

Extensive damage to coral reefs 20-30% species face extinction

Rising intensity of storms, forest fires, droughts, flooding, heatwaves

Increased damage from storms $50-100B US property under water

Global extinctions

-30% coastal wetlands

-$20T -$44T -$72T

Temp Δ relative to pre-industrial levels

CREATING SEVERE LONG-TERM IMPACTS

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OPTIONS TO COMBAT CLIMATE CHANGE

Electricity(30%)

Industry(21%)

Transportation(26%)

Renewable Energy

Electric Vehicles

Energy Efficiency, CCS

TechnologyLand Management

Geo-Engineering

“Adapt” Reduce Emissions Remove CO2 from Atmosphere

Necessary

Carbon-to-Value

Severe Marginal, Long Long Unpredictable

Carbon-to-Value technology is the only economically viable option within the necessary timeframe at the required scale

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SOLUTION: CONVERT CO2 INTO PRODUCTS

CO2

Direct from the Air

CO2

Into “Carbon Negative”Materials

CO2

Price Competitive Products

CAPTURE CONVERT COMMERCIALIZE

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HOW IT WORKS

DIRECT AIR CAPTURE NATURAL GAS RENEWABLE ENERGY

CARBON FIBER

CONCRETE INDUSTRIALCHEMICALS

TIRES STEEL FUELS

CO2 + (H2 or CH4) + e-

ELECTROLYSIS

O R

ELECTRONICS

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CARBON FEEDS LARGE GLOBAL MARKETS

CO₂

Materials$650B

Steel

Concrete

Fillers

Coatings

Chemicals$500B

Plastics

Industrial Chemicals

Fertilizers

Carbonates

Fuels$2,000B

Diesel

Ethanol

Methanol

Carbon is an important feedstock into materials ($650B), chemicals ($500B) and fuels ($2T), representing 18.8 GT / year sequestration potential

Carbon UsesSequestration

Potential Very Long

Short

Sequ

estra

tion

Dura

tion

-18.

8 G

T /

Year

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Solid Carbon Materials End MarketsCarbon

Market Size1Direct CO2

Impact2

Tire Filler $19.0 B .07 GT

Other Fillers & Reinforcements $6.0 B .02 GT

Coatings, Inks $2.0 B .01 GT

Metal Replacement $250.0 B 7.7 GT

Concrete Replacement $243.0 B 11.0 GT

Carbon Fiber $2.6 B .003 GT

Resin Reinforcement $16.0 B .05 GT

Electronics, Energy Storage >$80.0 B .006 GT

Biotech, Optics, Fabric, Other <.01 GT

$600-700 B 18.8 GT

Carbon Black

Nanotubes, fibers, graphene, structured

materials

1. Based on incumbent/end product market price, weight and loading ratio of carbon in product2. Direct sequestration in end product based on carbon loading plus effect of avoidance of incumbent product manufacturing

EXAMPLE: SOLID CARBON MATERIALS

For example, solid carbon materials markets are global, massive and leveraged to urbanization trends

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Unsubsidized Cost of Energy Comparison (US)

$0

$10

$20

$30

$40

$50

$60

$70

$80

2015 2020 2025 2030 2035 2040

$/M

Wh

GAS

COAL

SOLAR

“CARBON NEGATIVE” INFLECTION POINT

Carbon Neutral Carbon Negative

Renewable electricity sources <$40/MWh (solar is <$30/MWh in many US markets) enables materials to be both “carbon negative” and price competitive

Source: EIA, BNEF, Lazard Estimates

UTILITY-SCALE SOLAR

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Type Stage Technology & Development Management Team, Capital NeedCapture Seed /

Growth• CO₂ from ambient air• Demonstration unit operating

• Strong mgmt. team, Bill Gates is lead backer• Needs $20M anchor for $75M project round

Capture Seed / Growth

• CO₂ from ambient air, flue gas• Lower cost than CEI at scale

• Mgmt. team lacks commercial & dev’t capability• $20M invested, Edgar Bronfman is lead backer

Capture Seed / Growth

• CO₂ from ambient air, distributed application• Finalists in Virgin Earth Challenge

• Based in Zurich• Funded by Swiss Institute of Technology

Conversion Growth / Project

• Low cost net-negative CO2 technology• Converts CO2 to carbon black, graphene,

nanotubes

• Strong technical team, lacks mgmt. and commercial/financial capability

• Exxon considering licensing partnership

Application Growth / Project

• Cellular graphene, diversified applications incl. ultra-high strength composites

• Pilot manufacturing plant operating

• Strong technical and management team• Needs $10M in growth capital to scale

manufacturing, develop stage II applications

Application Seed / Growth

• Solid Carbon to Batteries• 5x performance of Tesla battery

• Strong technical team, weak mgmt. team• Needs $3M to complete commercial prototype of

10 kWh battery, $5M to scale

Application Growth / Project

• Solid carbon to diversified applications (electronics, carbon black, wearables)

• Strong technical and management team• Needs $15M in growth capital to scale platform

TECHNOLOGY IS VIABLE

Several carbon-to-value technologies are available and ready to scale

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THE OPPORTUNITY TO BE FIRST

Emissions Source Zero Carbon ProductsTechnology Investment

‘00–17

Power Plants Hydro, Solar / Wind + Batteries $35B+

Transportation Electric Vehicles $12B+

“Industry” Materials, Chemicals, Fuels <$100M

To date, less than $100M has been invested in the emerging carbon-to-value sector

Source: CB Insights

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INDUSTRY “INTEGRATOR” IS NEEDED

Siloed carbon-to-value technology development must be transformed into a cohesive, well-capitalized commercial industry

ACTIVITIES PEOPLE

Project Development Private equity investors (Energy/renewables)

Technology Integration Engineers & business development executives

Regulatory Evaluation Policy experts

Application Analysis Industry analysts

Technology Investment Venture capital investors (Early-stage)

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PRIOR EXPERIENCE: SOLAR RESERVE

Summary

Vertical: Renewable Power

Technology: Concentrated solar thermal with molten salt storage

Stage: Development

Locations: Worldwide

Scale: 100 – 400 MW (reference plant)

Date of Investment: January 2008

Capital Committed/Invested:

$53 million / $53 million

Ownership %: 36% (fully diluted)

Problem / Opportunity

► Large US-based industrial took control of CSP technology via acquisition of rocket engine business

► $100M of R&D from DoE, major US utility and several other federal agencies

► In order to move technology into commercial phase, a commercial scale facility needed to be developed, financed and constructed

► Senior management of industrial (1) was unwilling to take necessary balance sheet risk (project guarantees), (2) lacked the in-house project development skills (site development and contracting) and (3) did not understand project finance

► As a result, the technology languished inside the subsidiary for 8 years

McDermott / Green Role

► Negotiated worldwide, exclusive license for 20 years (plus 10 year extension) to use and sell molten salt storage equipment manufactured by UTC

► Spun-out engineering team and other team members

► Located and hired additional senior management to lead development and financing of first project

► Raised additional $140M of corporate and project equity

Investment Status / Results

► Negotiated worldwide, exclusive license for 20 years (plus 10 years)

► Formed Solar Reserve, LLC to transfer technology outside of UTC

► Funded first $8M

► 110MW Crescent Dunes ($1.2 billion cost) operational

► SolarReserve is world’s largest CSP company with storage

► Development and operating assets in US, South Africa, Chile, China and AU

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PRIOR EXPERIENCE: FULCRUM BIOENERGY

Summary

Vertical: Low Carbon Fuels

Technology: Advanced MSW Processing, Gasification, Fischer- Tropsch

Stage: Development

Locations: U.S. Focus

Scale: 10-60 MGPY

Date of Investment: July 2007

Capital Committed/Invested:

$90 million / $90 million

Ownership %: 51.5% (fully diluted)

McDermott / Green Role

► Founded company, created business model, hired management team, provided initial capitalization

► Negotiated first feedstock contract, technology licenses

► Provided strategic guidance and supported growth of the business as Chairman of the Board

► Raised over $250MM corporate and project equity

► Supported $180M in successful Federal loan and grant awards

Investment Status / Results

► Formed Fulcrum to be a leading developer and operator of waste-to-fuels projects globally

► Funded seed and growth capital 2007 – 2011

► Fulcrum is the lowest cost producer of low carbon fuels from waste feedstocks

Problem / Opportunity

► More than 300MM tons of MSW are generated in the U.S. each year – convertible to nearly 10 billion gallons of drop-in fuel annually

► Large development program based on long-term access to large volumes of zero-cost waste

► Integrated demonstration of MSW-to-fuel technology

► Produce a drop-in fuel (syncrude, diesel & jet fuel) for less than $1.00 per gallon

► Secured significant private equity investments from large strategic investors (United Airlines, Cathay Pacific, Waste Management, Barrick Goldstrike)

► Beginning gasification EPC work on first project in Q2 2017; operational in 2018

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TEAMJim McDermott, Ex. ChairmanRusheen Capital Management, US Renewables Group, Fulcrum Bioenergy, SolarReserve, Common Assets, NanoH2O, Spoke.com, Archive and Stamps.com

Jeff Green, CEORusheen Capital Management, Moleaer, NanoH2O, Archive and Stamps.com

Will Kain, CFORusheen Capital Management, WindESCo, NanoH2O, Altra Biofuels and UBS

Mike McMahon, Senior AnalystRusheen Capital Management, Roth Capital Partners and Bloomberg, LP

Chief Technical Officer

Director, Technical Diligence

VP, Business Development & Government Relations

Join at Close:

EXAMPLE

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C4 SCP (Development Company)

C4 SCP: DAC-TO-SOLID CARBON

PILOT REACTOR:600 TPY

DEMO PLANT:30,000 TPY

COMMERCIAL PLANT 1:100,000 TPY

COMMERCIAL PLANT 2:100,000 TPY

COMMERCIAL PLANT 10:100,000 TPY

► Capital► Management► Project Development

► Technology► Know-how► Team

► Technology► Know-how

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C4 SCP: MARKETS

AEROSPACE INDUSTRIALCHEMICALS

AUTOMOTIVE

DEFENSE

“Carbon Negative” Solid Carbon Materials Target Industries

C4 SCP to manufacture “carbon negative” solid carbon materials for the automotive, aerospace, chemical, plastics, electronics, and construction industries

ELECTRONICS CONSTRUCTION

CARBON BLACK (CB)

CARBON NANOTUBES / CARBON NANOFIBER(CNT / CNF)

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Carbon Black Market Price Range1

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$ /

Ton

Carb

on

Carbon Black Price ($/Ton)

First Commercial Plant

C4 SCP: PRODUCTS

Key Assumptions

Utility Scale Solar Price • $40.0 / MWh • $40.0 / MWh • $40.0 / MWh

Natural Gas Price (CH4) • $3.00 / MMBTU • $3.00 / MMBTU • $3.00 / MMBTU

CO2 Capture Cost (Atmospheric) • $299 / ton • $140 / ton • $140 / ton

Annual Volume (Carbon) • 30,000 tons • 100,000 tons • 100,000 tons

Demo Plant

1. Range reflects price points for rubber and specialty carbon blacks

At current solar and carbon black pricing, projections for CO2-to-carbon black show the potential to be price competitive

First Commercial Plant with Carbon Price @ $100 / Ton CO2

$1,191

$741

$546

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CONTACT INFORMATION

jim.mcdermott@c4composites.comjeff.green@c4composites.com

2425 West Olympic Blvd., Suite 4000 WestSanta Monica, CA 90404

(424) 252-4222