It‘s all about moving mountains together

It‘s all about moving mountains together

Company presentation, June 2021

TECO 2030 ASA │ COMPANY PRESENTATION

TECO 2030 develops and supplies technology that reduces the climate and environmental impacts of the maritime industry.

CLEANTECH

TECO 2030 is based in Oslo, Norway and was established in autumn 2019. It currently has around 25 employees.

NORWEGIAN

TECO 2030 is a spinoff of the TECO Maritime Group, which was established in 1994 and has approx. 150 land-based employees in 10 countries.

27 YEARS OF EXPERIENCE

TECO 2030IN BRIEF


20,000 short-sea vessels and ferries

45,000 ocean-going vessels450 cruise ships

Shore power solutions for ports without capable

infrastructure

9,000 offshore units

Grid and off-grid solutions

Construction site solutions2,000 fast ferries

ONE STACK FITS ALL, MODULAR SYSTEM FROM 400 KW – 40 MW

FUEL CELLS SOLVE CHALLENGES FOR 100,000 UNITS WORLDWIDE

40,000 river and waterway vessels


TECO 2030 WILL ESTABLISH NORWAY’S FIRST LARGE-SCALE PRODUCTION OF HYDROGEN FUEL CELLS

TECO 2030 plans to set up agigafactory and innovation center forthe production of hydrogen-based fuelcells in Narvik in Northern Norway.

FUEL CELL GIGAFACTORY

The factory will start production in 2022,and by 2030, it will have an annualoutput of 1,200 MW of fuel cells.

1.2 GW OF FUEL CELLS

TECO 2030 expects to have 100employees at the factory before theend of 2025, and up to 500 by 2030.

500NEW JOBS


Manual prototype production to start in 2022, with 10 MW output.

Automated production due to start in 2025, with production lines delivered by AVL.

At full capacity in 2030, expected annual production is 1,200 MW.

We are currently looking into various financing options for the new factory: equity, bank, leasing, public funding.

Production 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Output (MW) - - 10 60 120 400 700 800 800 1,000 1,200

SOP Line 1 Line 1 at full cap.Line 2 SOP

Line 2 at full cap.Line 3 SOP

All lines at full cap.

PRODUCTION TIMELINE:

System testingPilot testing

Prototype SOP

Cell testing Stack testingAIP

PRODUCTION IS SET TO START IN 2022


• AVL is the world’s largest independent company in powertrain development, simulation and testing.

• AVL has experience with passenger cars, commercial and construction vehicles, trains, ships, mining and other heavy machinery, and with developing engines for the maritime sector.

• AVL develops products using its advanced simulation technologies, whose benefits include increased efficiency and performance, and reduced development costs and time-to-market.

• All IP and patents developed as part of the cooperation between TECO 2030 and AVL are owned 50/50 by the two companies. TECO 2030 has exclusive ownership of all implementation designs for fuel cell and stack.

employees worldwide

engineers and scientists

of turnover invested in inhouse R&D

billion Euro in turnover

granted patents in force

Source: AVL

Quick facts and figures

FUEL CELL TECHNOLOGY DEVELOPED IN COOPERATION WITH AVL


Fuel cell systemdevelopmentPEM + SOFC

Fuel cell testsystems Energy storage &H2/Synfuel production

Fuel cell simulation tools

Integration & application development – From cell to vessel

AVL's new fuel cell test center:

• Fuel cell system test rigs (up to 400 KW)

• Test rigs for all subsystems & components

• Capacity of up to 20 test rigs

• More than 18 years of fuel cell experience

AVL owns four times more fuel cell patents than all competitors combined!Source: AVL

AVL HAS 450 ENGINEERS INVOLVED INFUEL CELL TESTING AND SIMULATION


*PEM = PROTON EXCHANGE MEMBRANE

Passenger car

SOP 2022

SOP 2020

AVL is strategic development partner for FCEV SOP Development of major European OEM.

PEM 35kW Range Extender SOP Development

100kW fuel cell system SOP development for a LD/MD Truck

Commercial vehicle

Commercial vehicles

SOP 2022

Modular 1.2 MW H2/PEM prototype system for special application

1.2 MW PEM system

Stack design, simulation & layout support for large scale PEM submarine stack

PEM submarine

*SOP = START OF PRODUCTIONSource: AVL

Modular 1.2 MW H2/PEM prototype system for marine and heavy machinery

24.0 MW PEM System

SOP 2023

AVL HAS A LONG LISTOF REFERENCE PROJECTS


DECARBONISATIONOF THE MARITIME SECTOR

EXPECTED SHIPPING INDUSTRYENERGY MIX TOWARDS 2050

IMO 2030The International Maritime Organization (IMO) aims to reduce carbon intensity in international shipping by 40% by 2030, and to cut the total annual greenhouse gas emissions from the sector by at least 50% by 2050 compared to 2008.

GREEN TRANSITION WITHIN THE MARITIME SECTORAcross the world, ship-owners will have to make their vessels more environmentally friendly.

CARBON NEUTRAL FUELSThe share of ships that run on carbon-neutral fuels is expected to increase over the coming years and decades.

HEAVY FUEL OIL AND GAS OILHeavy fuel oil and marine gas oil will, however, remain an important marine fuel for decades.

Source: IMO, American Bureau of Shipping (ABS)

34% Hydrogen/Ammonia


ECOLOGY

ECONOMY

POLITICS

Hydrogen fuel cells are the most efficient way to generate and store electricity• H2 has the lowest investment and production costs of all renewable fuels

Significant CO2 emission reductions are required if we are to reachthe 1,5°C Paris climate target• There are talks about introducing a global CO2 tax for ships

Several governments are considering introducing very strict local ornational regulations regarding air and water pollution• Strong governmental and public support towards hydrogen and fuel cells

Hydrogen fuel cells are today the best feasible option for zero emission heavy duty marine applications• No greenhouse gas emissions• No particulate emissions• No pollutant emissions

Source: Felleskjøpet, Company

HYDROGEN FUEL CELLS– THE BEST FEASIBLE OPTION


Source: Company (16.03.2021)

ZERO EMISSIONFuel cells emit no greenhouse gases, only water vapour and hot air.

EFFICIENTFuel cells are more efficient than traditional engines, and generally have an energy efficiency of 40-60%, according to the U.S. Department of Energy. In comparison, the typical internal combustion engine of a car has an efficiency of about 25%.

LOW OPERATIONAL COSTSUnlike batteries, fuel cells do not need to be charged. They can be refuelled fairly quickly, and they also require little maintenance.

ROBUST AND RELIABLEFuel cells have proven to be reliable also in tough conditions, such as in deserts and extreme cold and during hurricanes and winter storms.

CUSTOM-FITFuel cells can be custom-made to meet the needs of the customer.

WHAT YOU SHOULD KNOW ABOUT FUEL CELLS:

https://www1.eere.energy.gov/hydrogenandfuelcells/fuelcells/pdfs/fc_comparison_chart.pdf


TECO 2030: CLEANTECHFOR THE MARITIME INDUSTRY

TECO 2030 MARINE FUEL CELLSwill enable ships and other heavy-duty applications to run on green hydrogen and become completely emissions-free. Developed in cooperation with AVL.

TECO 2030 FUTURE FUNNELan exhaust gas cleaning system for ships that will feature carbon capture technology, developed in cooperation with Chart Industries, Inc.

TECO 2030 BALLAST WATER TREATMENT SYSTEMeliminates organisms in the ballast water. To stop the spread of invasive aquatic species from one region to another, the IMO requires all ships operating in international waters to install a ballast water treatment system by 8 September 2024.


TECO 2030 MARINE ANDHEAVY INDUSTRY FUEL CELLS


HIGHER EFFICIENCYFuel cell = 57%, diesel engine = 48%

MAINTENANCEFuel cells have no moving parts, and fewer parts in general

EMISSIONSFuel cells emit nothing but water vapour and warm air

COSTFuel cells are expected to become cost-competitive from 2025

Conventional Diesel Genset1.2 MW

TECO Fuel Cell SystemModular 400 kW

TECO Fuel Cell SystemModular 1.2 MW

Source: AVL

TECO 2030 MARINE FUEL CELL: GREAT ALTERNATIVE TO DIESEL


TECO 2030 MARINE FUEL CELL: FLEXIBLE FUEL CELL SOLUTIONS

SCALABLEfrom 400 kW to 24 MW

RETROFITTINGMany shipowners consider retrofitting in containerised form

FLEXIBLESame design can be used for land-based applications


Liquid hydrogen (LH2)

Maintains high efficiency with low H2 input pressure

Compressed hydrogen (CH2)

Can operate on pressureranges up to 700 bar

Metal Hydride hydrogen storage

Unique fuel tank-fuel cellheat regulation system

Full or partial turnkey projects to provide tailor made solutionsFLEXIBLE FUEL APPROACH

Ammonia (NH3)

Active research on ammonia pre-treatment

Ammonia Pre-treatment


1: Similar sized fuel cell stacks. Source: AVL, Company

OUTPERFORMES OTHER ALREADY EXISTING FUEL CELLS

HIGH DURABILITY AND POWER DENSITYPower density of 4.1 kW / stack liter with lifetime of 30,000-35,000 hours

HALF OF PLATINUM CONTENTcompared to current fuel cell stacks used in passenger cars1

LOW COSTof ownership due to reduced need for battery capacity

TECO 2030's marine fuel cell stack platform is already outperforming competitors, and the company is aiming for even better performance.

FRONT-RUNNERBy utilizing the synergies between TECO and AVL, the front-runner position is maintained in the future


THE CONCEPT THE FACTS

Green hydrogen produced from solar and windenergy in Romania will be transported onbarges along the Danube river to industrialbuyers in Austria and Germany.

TECO 2030 will from 2024 deliver 100-150 MWof fuel cells to Chemgas Shipping's newhydrogen-powered tugboats, which will takethe barges along the Danube. Projected deliveryof 2.4 MW per tugboat.

2,000 MW off-grid wind and solar energy production

1,800 MW electrolysis for hydrogen production

40-60 push tugs and up to 120 hydrogen transport barges

80,000 tonnes of hydrogen for industry, power + mobilityhubs (500 trucks/100 HRS) along the Danube

3.2 million tonnes of annual CO2 reductions

TECO 2030 IS A PARTNER IN THE PROJECTGREEN HYDROGEN @ BLUE DANUBE


• TECO 2030 has signed a cooperation agreement with infrastructure contractor Implenia Norge AS to jointly develop and pilot hydrogen powered construction site solutions.

• The first fuel cell delivery is planned to take place in January 2023.

• Implenia is looking into various financing options for the project and has applied for funding from the Norwegian state enterprise ENOVA.

FUEL CELLS CAN ALSO BE USED TO DECARBONISE CONSTRUCTION SITES


TECO 2030 FUTURE FUNNEL


FUTURE FUNNEL SOLVESFOSSIL FUEL EMISSION CHALLENGESTECO 2030 FUTURE FUNNEL TODAY

Sample 1 Sample 3 Sample 2

Sampling point (post-turbo chargers) burning MGO

Source: Carnival

Sample 5 Sample 4 Sample 6

Sampling Point (post-DeSOx Tower) burning HSFO + Scrubber

DeSOx performance:

• SOx reduction >98%

• CO2 reduction 10-20% 1)

• Significant PM reduction

DeNOx performance

• Selective catalytic reduction

• NOx reduction 50-90%

• About 70% nano-partiulate

mass emission reduction 2)

PM/PN performance:

• Undisclosed technology

• >90% PM/PN reduction

• Awaiting regulations

Carbon capture performance:

• Undisclosed technology

• CO2 reduction 30-40% (2030)

• CO2 reduction 60-70% (2050)

• Awaiting regulations

1) https://cedelft.eu/publications/comparison-of-co2-emissions-of-marpol-annex-vi-compliance-options-in-2020/

TECO 2030 FUTURE FUNNEL TOMORROW

2) https://doi.org/10.4271/2003-01-0777


TECO 2030 FUTURE FUNNEL– PRODUCT TIMELINE

FUTURE FUNNEL GEN 0

De-SOx System available today. Complies with both 0.1% and 0.5%

Sulphur regulations (IMO 2020).

2020 2021 20232022

Sulphur Oxide (SOx)

FUTURE FUNNEL GEN 1

Upgrade for TIER III NOx legislation. Implementing in NECA

already 2021 for New Builds. Already implemented in NA NECA.

Nitrogen Oxide (NOx)Particulate Matter (PM)

Black Carbon (BC) Carbon Dioxide (CO2)

FUTURE FUNNEL GEN 2

Remove Particulate Matter and Black Carbon for expected

rules in 2023.Pilot installation Carbon Capture.

FUTURE FUNNEL GEN 3

Integrate Carbon Capture and Storage System, IMO 2030 goal.


TECO Future Funnel

AUG 19 Sept 19 Oct 19 Nov 19 Des 19 Jan 20 Feb 20 MAR 20

PROJECT START PROJECT COMPLETED

Feasibility

Concept

System design

Componentdevelopment & testing

Systemintegration

Verification, validation,

certification

Future proofdesign

CASE STUDY TECO 2030 AND AVL:SCRUBBER DEVELOPMENT


Tore Enger – Chief Executive Officer, ASA

• Founded TECO Group in 1994• 29 years of entrepreneurship in maritime industry• Chairman of Scanship for 10 years

Paal Christian Johnsen – Chief Financial Officer

• 7 years with the TECO group of companies• Experience from Økokrim and AS Naturbetong

Bettina Nowak – Chief Executive Officer, USA

• Managing Director for Scanship Americas for 11 years• Joined TECO in 2018 as CEO in Miami

Tor-Erik Hoftun – Executive Vice President Operation, ASA

• Bachelor in Nautical Sciences from UIT and UNIS• Previously Development Manager in Scanship AS

Arild Eiken – Chief Technology and Project Officer

• 21 years experience from, among others, AKSO and Equinor• Previously responsible for fuel cells and hydrogen at HYON

Fredrik Aarskog – Business Development Manager• Business Development Manager for hydrogen fuel cells at IFE• 10 years of experience in R&D and awarded 10 patents

Emil Vestum - Lead Electrical and Automation

• Lead engineer on power electronics in the ZeFF project• Master in marine cybernetics

Stian Aakre – Chief Executive Officer, AS

• 10 years in management positions at Wärtsilä• VP Head of Environment at Höegh Autoliners

Ben Shipwright – Senior Project Manager

• MSc Naval Architecture• 5 years experience as machinist• 5 years experience in PM for British Navy

Yasmin Fortuny – Director of Sales, USA

• Director of Sales for Scanship Americas for 8 years. • More than 20 years of experience in the marine industry.

EXTENSIVELY EXPERIENCED TEAM


TECO GROUPCLIENTS


Kick-off 3. KPIs and reportingstructure

• Value chain analysis conducted as desktop research, qualitychecked by TECO 2030

1. Value chain analysis

• Determine at least one indicator per material issue (as defined byGRI or TECO 2030), as well asgoals and ambitions

• Determine ambition level forsustainability reporting

Content • Project scope• Project plan• Define roles,

responsibilities and involvement

• Facilitation of sustainability report to be written in line with GRI recommendations (not necessarily in accordance with GRI)

4. SustainabilityreportingProjectphase

Timeline

TECO 2030activity

September 2020 May 2021

• Based on current business modeland strategy, stakeholders, market and competitors, scenarios

• Identify industry best practices on sustainability strategy, targets andreporting

• Materiality assessment conductedas desktop analysis and workshop

2. Materiality assessment

• Attend kick-off meeting• Share information on

company & productsfor input to nextstages

• Attend 1-2h workshop where we go through the impacts of each stage ofthe value chain

• Attend ~2h workshop to discuss and prioritize sustainability issues

• Attend ~2h workshop to discuss and define ambitions

• Evaluate current management approach of each material sustainability issue

• Author sustainability report

Project planning Assess sustainability impacts throughout value chain

Identify most important sustainability topics, ensuremanagement commitment

Define KPIs, indicators and reporting structure according to GRI

Support sustainability reporting

TECO 2030– ESG PROJECT PLAN

Thank youfor your attention

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Tore Enger, CEO of TECO 2030 [email protected]

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It‘s all about moving mountains together