Start-up of a new CO2capture unit in a pulp millMay 2019

Richard Surprenant, ing.SVP Process Engineering and CTO

FORWARD LOOKING STATEMENTS

All statements in this presentation that are other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as “anticipates”, “believes”, “could”, “expects”, “intends”, “may”, “should” and other similar 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 our future results and may cause thoseresults to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our early stage of technology development; our need for capital to finance necessary research and product development; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated futureevents and conditions. For further information concerning risks and uncertainties that may affect our future results, please review the disclosures as may be contained from time to time in our filings with SEDAR. Other than as required by applicable securities laws, we undertake no obligation to publicly update or revise any of our forward-looking statements, whether as a result of changed circumstances, new information, 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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CO2 SOLUTIONS INC. – BACKGROUND INFORMATION

Publicly traded on TSX-V (CST-V)

• 92 patents granted and pending (as of September 30, 2018)

Proprietary CO2 capture and separation technologies based on the use of the

carbonic anhydrase (CA) enzyme

• Lowest opex among known technologies

• Standard equipment configurations

• Environmentally friendly process

• Demonstrated at large scale

• Commercial stage (TRL 8)

• Output of high purity CO2

Value Proposition Leadership in Carbon Capture & Utilization through Valorisation

Carbone Québec project• CO2 capture from post-combustion

industrial flue gas streams produced by any fuel source

• CO2 separation from biogas, native gas or process gas

Applications

• Head office and labs in Quebec City (QC)

• 25 employees, including 6 PhD’s

Canadian Company

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𝑪𝑶𝟐 + 𝑯𝟐𝑶𝑪𝑨𝑯𝑪𝑶𝟑

− +𝑯+

Active metallic

site

CARBONIC ANHYDRASE – Nature’s Perfect Catalyst

Molecular Weight ~30,000

Dissolved in solution / free flowing

Thermostable and process stable

Resistant to high pH (9.5-10.5)

Originating from extreme environments (P, T, Salinity)

Directionally evolved for industrial conditions

Proprietary to CO2 Solutions

Produced by third party enzyme manufacturing contractors

pH

Catalyses CO2 hydration reactions

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𝐻𝐶𝑂3− + 𝐻+

𝐶𝑂2 (aqueous)

𝐶𝑂2 (gas)

𝐾2𝐶𝑂3+𝐻𝐶𝑂3− + 𝐻+↔ 2 KHCO3

Gas/Liquid interface

Carbonic Anhydrase

Carbonate Bicarbonate

CHEMICAL SYSTEM REACTIONS

WATERDemineralized

CATALYST< 1 g / litre

POTASSIUM CARBONATECommodity Chemical

One of the fastest catalystsin nature:

kcat = ~106S

-1

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CO 2

Reclaimer

Absorber

Stripper

L-R Heat Xger

Flue gas

Exhaust gas

Blower

Trimmer

Water wash tower

Water washdrum

Exhaust cooler

Reboiler

CO2

Wastes

Conditionning

Intercooler

Wash

Wash return

Activated carbon

NaOH

The market needs a lower-cost environmentally friendly solution

TYPICAL AMINE CAPTURE PROCESS

Amine technologies fall short on:

▪ Toxic, volatile and expensive solvent▪ High parasitic load / heat quality▪ Significant corrosion rates▪ Sensitive to oxidation and contaminants

Equipment in BLUE is not required in the

CO2 Solutions enzymatic process.

NOx / SOxpolisher

Polishedflue gas

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Absorber

Stripper

L-R Heat Xger

Flue gas

Exhaust gas

Blower

Trimmer

Reboiler

CO2

Wash

Wash return

Conditionning

ENZYMATIC CAPTURE PROCESS

CAPEX and OPEX advantages

Reduced environmental footprint

NO TOXIC WASTE

STANDARD GAS TREATMENT EQUIPMENT

LOW-COST “COMMODITY” CARBONATE SOLVENT

LOW-GRADE HEAT FOR REGENERATION ENERGY

BEST-IN-CLASSPROPRIETARY ENZYME

NO TOXIC AEROSOLS

PURE CO2

NO FLUE GAS POLISHING REQUIRED

FERTILIZER PRODUCED FROM PERIODIC SOLVENT BLEED

DEMONSTRATED AT LARGE SCALE – TRL 8

ENVIRONMENTAL PROPERTIES CONFIRMED IN 3RD PARTY LIFE

CYCLE ANALYSIS

LOW-COST MATERIALS

NO WATERWASH

NO INTERCOOLERS

NO RECLAIMER

NO FILTER

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Technical differentiatorsCSI vs. amines

Heat medium at reboiler

Steam (parasitic

load)

Hot water @ 85°C (residual

heat)

Tolerance to SOx/NOx

contaminants

Scrub below10 ppm

No scrubbingrequired

Choice of materials

High-grade stainless steel

to control corrosion / toxic risks

Low-grade allowable (SS-304), carbonsteel and C-

PVC

Environmentalfootprint

Side reactionsgenerate

toxic wastesand aerosols

Stable solvent and non-toxicCSI

Amines

CAPTURE TECHNOLOGY DEMONSTRATED

Operated a demo plant for 2,500 hours in 2015 and

3,000 hours at Parachem since August 2017

CO2 produced is at 99.95%+ purity

No solution degradation observed

No solution makeup required

No toxic waste products generated▪ Spent solution sent to the

municipal sewer

3rd party validation of plant performance and simulator benchmark (Tetra Tech Inc.)

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< 39$ < 28$

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30 tpd project, Can$10.0 M- Commissioned in Q1

2019

<20140.5 tpd

2014-20151 tpd

201510 tpd

In advanced discussions for commercial projects

up to 300 tpd

201710 + 10 tpd

201930 tpd

COMMERCIAL PROGRESS – CAPTURE & UTILIZATION

2016: first commercial agreement signed

tpd = metric tonnes CO2

captured per day 10

Scope of St-Félicien project

Lime kiln

Venturi

(environmental compliance)

Stack

Blower

Venturi

(for CO2 capture)

Quench column

Absorber

StripperCompressor

(2 stage)

Condenser

Pipeline

Greenhouse

Dryer

Separator

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CO2 captured and sent to the greenhousereplaces CO2 generated from natural gas

(fossil fuel)

An extra venturi cleaning step removesparticulates before the capture unit as hot lime (cement) would create maintenance

issues. However, there are no SOx nor NOx treatment required.

Latest Commercial Project – 30 tpdSERRES TOUNDRASaint-Félicien, QC

• Capture up to 30 tpd CO2 from Resolute Forest Products’ (RFP) pulp mill lime kiln

• Utilize mill’s low-grade / waste heat for process

• Reduce CO2 output from mill / share carbon credits

• Supply CO2 to neighboring Serres Toundra greenhouse complex

Full CO2 value chain enabled by CO2 Solutions’ technology

Full CO2 value chain enabled by CO2 Solutions’ technology

In Operation March 2019

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All equipment are « standard » issues

i.e. pumps, plate/frame exchangers, packed columns, compressors, venturi systems, etc.

EQUIPMENT & CONSTRUCTION STRATEGY

TRANSPORTABLEBUILDING ERECTEDAROUND MODULE BASE

CIVIL PRE-WORK + PIPERACK

ALTERNATIVE MATERIALS

(CPVC, SS304)

COLUMN ABSORBER

MODULAR CONSTRUCTION

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SITE PREPARATION BEFORE MODULES ARE BOLTED IN

GAS CONDITIONING EQUIPMENT(QUENCH + VENTURI)

STRIPPER FOUNDATION

MODULE ANCHORS

GROUNDING

PIPERACK

ABSORBER FOUNDATION

CO2 PIPELINE

SUMP

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RAISING THE COLUMNS – A GOOD DAY AT THE OFFICE

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INTERMEDIATE RESULT

ABSORBER

VARIABLE THROAT VENTURY

STRIPPER

QUENCH TOWER

LIME KILN

GREENHOUSE

CAPTURE UNIT AND UTILITY

PIPERACKTOWER HEIGHT: 7.6 MPACKING HEIGHT: 3.7 MDIAMETER: 1.07 M VENTURY HEIGHT: 6.7 M

VENTURY DIAMETER: 1.07 MVENTURY-QUENCH

CONNECTION LENGHT: 1.37 M

TOWER HEIGHT: 39.39 MPACKING HEIGHT: 25.0 MDIAMETER: 1.13 M

TOWER HEIGHT: 30.3 MPACKING HEIGHT: 18.9 M

DIAMETER: 2.05 M

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CLOSING THE BUILDING AND WORKING ON THE GUTS OF THE UNIT

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COMMISIONNING AND START-UP

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LESSONS LEARNT

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If you see those in the hotel parking lot, ask yourselfif it’s the right season to start-up your unit!

FINAL RESULT

ADDITION SYSTEM

PROCESS EQUIPMENT ON MODULES

Shop fabricatedfor reduced construction costs, better qualitycontrol, better safetyand easy transport

On unit slab, self contained with unit sump

ELECTRICAL ROOM

In separate containerized buildingPLC and Motor Drives wired in-situ

HUMAN MACHINE INTERFACE (HMI)

Data historian through PI (PFR)Remotely accessible (internet)

MAIN PROCESS BUILDING

Prefab steel40’ X 52’ X 34’ Picture not shown

VACUUM PUMP / COMPRESSOR

2-stage reciprocalSpecial grease/oil free pistons for

food grade (greenhouse)Separate shelter/housing

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CURRENT STATUS

In operationMarch 2019

Performance audit report

completed

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RESULTS FROM THE PERFORMANCE AUDIT

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• 100% of the thermal energy required for carbon capture comes from residualsources from the pulp mill – at no cost!

• Thermal energy required is 2.4 GJ/tCO2

• Combined thermal and electrical energycost for the project is less than 5€ per tonne of CO2

• CO2 quality meets the stringentgreenhouse specifications

PROJECT PEER RECOGNITION

• 2019 Innovation Project Award by the Ordre Des Ingénieurs du Québec in Chaudière-Appalaches-Québec region

• One of three Finalist for Provincial Innovation Project of the year (provincial award night May 29th 2019)

ST-F

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Creating the New Carbon Economy

Contact:Richard Surprenant, Senior VP, Process engineering and CTORichard.surprenant@co2solutions.com

www.co2solutions.com

Ticker: TSX-V (CST)24