Biocarbon Factory Cluster

in Flushing/Vlissingen (NL)
Single “green coal” supplier driving
the EU steel industry decarbonization
Investment case overview
Confidential / April 2024
Tom Sieverts ts@e3carbon.com
Pavel Volichenko pv@e3carbon.com
The green business of “biomass upgrade”
Biomass input of
various feedstock types
Biomass Torrefaction
• semi-standardized plant design
• almost energy neutral
• extremely low running cost
Improved biofuel output/product
450 Biocarbon price at which large
EUR/ton EU-based consumers are ready
to enter in 5-year off-take
agreements already today

200 385 Real price of PCI coal after CO2 fines

White wood pellets
EUR/ton (at today’s PCI price of 200 EUR/t
and EUA at 65 EUR)
10-30%
Sunflower husks (example) 120 gross 200 Current spot price of PCI coal
margin (prices as of mid Jan 2024)

Own agricultural waste +/- 0

2
Biomass torrefaction – tech and product overview

E3 Carbon proprietary tech is based on R-O2 patent from a UK-based CDS

(also a E3 shareholder), allowing efficient production of CO2-neutral green Green carbon
carbon via torrefaction of organic waste. (certified carbon-neutral, hydrophobic)

E3 Carbon
Sugarcane Palm EFB
bagasse
torrefaction reactor

E3 Carbon tech VS peers:

White wood 1) 30%+ higher carbon content
pellets
2) more flexible feedstock (requires
less changes to accommodate
feedstock changes – important for
CDS R-O2 patent
agricultural waste)
Olive Woody (E3 holds exclusive license)
pomace residuals + 3) x2-3 higher co-firing rate with fossil
Proprietary improvements coal in pulverized coal burners =
(patent application pending) easier buy-in from large customers

3
Superior E3 product properties open more markets

Standard
Wood E3 Green PCI (HV) Coking
torrefied Co-firing rate = market potential
pellets Carbon fossil coal Coal
wood pellets
Excellent calorific (burning)
Total carbon (% db) > 20 > 55 > 70 > 75 > 80 properties and low ash content of
Moisture content (% wt) 8 - 12 <5 <5 >8 >8 E3 Green Carbon guarantee it
extremely high co-firing rate (mix
Lower heating value (MJ/kg) 15 – 18 > 22 > 27 > 25-26 > 27
with regular fossil coal in existing
Ash content (% db) <1 <2 <3 <15 < 12 burners and furnaces).
Volatile matter (% db) < 80 < 70 < 40 25 - 38 20 – 35 According to tests carried out by
Density (kg/l) Bulk 0.6 – 0.7 0.6 – 0.7 0.45 – 0.6 0.7 – 1.1 0.7 – 1.1 ThyssenKrupp (a future customer),
co-firing rate may well reach 50%.
Durability (weight% ar) 97-99 > 98 > 93 > 95 > 95
Whereas co-firing 20% is targeted
Hydrophobic No Yes Yes Yes Yes by the steel industry by 2030.
Biological degradation Yes No No No No This implies easier buy-in from
Grindability Poor Good Good Good Good large customers and much higher
Handling Special Good Good Good Good market potential for E3 product.

Source: Pöyry Management Consulting Oy and E3 results

4
EU ETS regulation will change the fossil coal market
By 2030 every industrial CO2 emitting will need to buy carbon
Introduction schedule for EU ETS emission allowance certificates for almost 50% of all emission.
carbon emission regulation E.g. this makes fossil coal for steelmakers x3+ more expensive!

48.5% 100%

5
 Carbon emissions are likely to get x2 more expensive

Unlike EUA price, large

coal consumers may have If implemented today, ETS obligations
long-term supply of (EUA = 70 EUR) will increase effective
biocarbon at fixed price. PCI coal price for steel makers x3

Source:
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Co-firing biocoal is the easiest defossilization strategy for
the steel industry

Global coal consumption, IEA 2023 Reasons we target steel makers:

• largest consumption share concentrated in hands of

few players (ArcelorMittal and TKS biggest in EU)
Power
generation Steel
• being the single biggest CO2 producer, steel industry
50% 25%
feel maximum political pressure to decarbonize

• cannot co-fire other biomass (e.g. wood pellets) due

to high carbon content (70%+) requirement
Cement
15% • steel is relatively high-margin product = steelmakers
Other are able to pay 450-500 EUR/t already now
10%
• alternative decarbonization strategies (hydrogen,
electric arc furnaces, etc) require substantial capex

7
EU steelworks defossilization is a major
new market opportunity

Coal-fired steelworks within reach from

NL Biocoal Factory Cluster

Country Location Steel output, t

Belgium Ghent 5'000
France Dunkerque 6'750 2.2 mln ton*
Germany Bremen 3'800 biocoal market
Germany Dillingen 2'760 by 2030 (only steel)
Germany Duisburg 11'560
Germany Salzgitter 5'200 with x2-3 growth potential due
Germany Völklingen 3'240 to co-firing increase
Netherlands Ijmuiden 7'500 to over 50%
UK Port Talbot 4'900 Eastern European steelworks:
UK Scunthorpe 3'200
additional market
+ 1.3 mln ton biocoal

* = 53.9 (total steel output)

x 0.2 (coal consumption for 1 ton of steel output)
+ 0.5 mln ton
x 0.2 (target biocoal co-firing rate 20% by 2030)

Current EU biocoal production is 0.05 mln ton 8

E3 Carbon team and advisers
Tom Sieverts
CEO (Hamburg)
Entrepreneur and operational manager
with proven track record of launching a
wood processing plant in Germany
Jason Dainty
CTO (Stoke-on-Trent, UK)
As Technical Sales Director
at CDS, Jason leads engineering
effort and manufacturing for E3
Pavel Volichenko
CFO, Operations (Zürich)
Seasoned startup founder with
broad operations and product
management focus
Vadim Bochkarev
Corporate Development (Münster)
Experienced investment banking and VC
professional with track record in business
development and capital raising
Cornelius Matthes
Board Member (Dubai)
Cleantech and renewables visionary
and investor. Providers strategy and
market entry guidance
Advisers
Bernd Sieverts, torrefaction tech
Simon Göß (Carboneer), carbon trading
Norbert Kowalkowski, EU grants
etc.
9
 Key stakeholders are already in place

Location (Bulk Terminal Zeeland – Vlissingen,

NL)
Feedstock
(CM Biomass)
Supply biomass feedstock:
• focus on wood pellets (75%)
• explore pre-pelletized
alternatives (sunflower
husks, peanuts, etc)
Volumes (indicative):
• modern bulk logistics
• location on «coal route» to steelworks
• available land and buildings
Consumers
Initial focus on steelworks
NL Biocoal Factory Cluster Distribution • Arcelor Mittal (LoI ready)
• single supplier to Western European Long-term off-take • ThyssenKrupp (initial lab
steelworks (later cement and utilities) and spot biocoal sales tests positive, expecting
• equity investment ~ 25 mln EUR • Terval 10k t test burn)
over 2024 - 2027
• Javelin Commodities
• 2030 EBITDA projected 150 mln EUR Later also
• CM Biomass (?)
• cement (Holcim)

2026 = 0.1 mln t • power gen. and utilities

(focus on lignite
2030 = 1.5 mln t Capital providers Equipment replacement)
(CDS)
• equity
• subsidies (NL+EU) Technology
(E3 Carbon)
10
Indicative factory plan (with pelletization unit)
Feedstock Pelletization * Torrefaction

CDS has 40 years of

industrial engineering
and complex process
maintenance experience

* Pelletization unit is not

required if factory is
intended for already
pelletized feedstock (e.g.
wood or sunflower seed
husk pellets)

Biocoal

11
Biocoal production unit economics (for 2026)

PCI replacement
biocoal sale price (DDP)
487 EUR/t < 1.0% Utilities
1.1% Real estate
20% 1.3% Equipment maintenance
Other
2.0% Freight to consumer

2.5% Personnel

3.5% E3 Tech License

80%
Feedstock

8%+ Margin

12
 Investment phases
EBITDA
Please consult E3 Carbon team for detailed EBITDA margin 7% 25%
comments on financial model and assumptions

0.8 mln 3 mln 17 mln 71 mln

1 factory unit 1 unit 4 units 11 units
operational 0.5 mln t output

2024 2025 2026 2027 2028 2029

Pilot plant re-launch

0.4 mln 2.3 mln 4.3 mln 11.6 mln
if successful
From 2028 onwards
Order of 1st the company has potential
factory unit (10t/h) 3.2 mln
for IPO or trade sale at
7+ EV/EBITDA multiple =
INVESTMENTS
EV of EUR 700+ mln
implies over X10 return
Up to EUR 25 mln over 2024 - 2027 ✓ EU and NL subsidies 40% of capex
Total equity investment requirement ✓ Debt 30% @ 5-7% interest from 2026 13
P&L and financial model summary
Base / conservative scenario 2H 2024 2025 2026 2027 2028 2029 2030
Target biocoal market (Benelux, Germany and the UK) size, mln t p.a. 0.0 0.1 0.1 0.3 0.8 1.6 2.2

PCI coal blend price, CIF ARA ports, EUR per t 200 194 188 183 177 172 167
ETS payment obligation (share of CO2 emission to be off-set with EUA) 0% 0% 3% 5% 10% 23% 49%
EUA certificate price, EUR per t CO2 emission, EUR 65 65 72 79 87 95 105
Biocoal price premium over fossil PCI coal + EUA (CO2 fines) 17% 19% 20% 20% 20% 20% 15%
Biocoal PCI replacement (27 CV, 70%+ total carbon) market price, EUR 450 450 468 484 503 525 526

Combined output by NL Biocoal Factory Cluster, t of biocoal 500 6'242 24'966 49'932 174'762 549'252 898'776
Revenue, EUR k 240 2'871 11'932 24'679 89'672 293'704 482'188
Feedstock purchase cost, EUR k 235 2'445 9'570 18'725 64'079 196'815 322'061
Total operating expenses (excl. feedstock), EUR k 359 755 1'562 2'581 8'614 25'919 41'184
EBITDA, EUR k -354 -329 800 3'373 16'978 70'969 118'942
EBITDA margin 0% -11% 7% 14% 19% 24% 25%
Cash position after investments in equipment, EUR k 0 0 0 0 1'119 63'776 177'819

EUR 124 mln - Total investments (equity + debt + EU and NL subsidies)

Total investments in factory equipment and launch, EUR k 3'200 3'200 15'750 46'750 43'200 12'200 0
Average number of full-capacity factory units in operation pilot 0.1 1 1 4 11 18

Cash flow to NL Biocoal Factory Cluster shareholders, EUR mln -3'554 -2'249 -4'323 -11'618 1'119 62'657 114'043

EUR 22-25 mln over 2024 - 2027

Total equity investment by shareholders 14
Proposed shareholder structure (indicative)

Shareholder Equity Commitment and role

✓ Project arrangement
E3 Carbon GmbH
20%
Hamburg, GER ✓ Management until dedicated team is built

CM Biomass Partners AS ✓ Feedstock supply and financing

Copenhagen, DEN
20%
✓ Biocoal off-take and distribution

Bulk Terminal Zeeland B.V. ✓ Land, buildings and all port infrastructure (machinery and team)
Vlissingen, NL 20%
✓ Biocoal Plants Operators

✓ EUR 25 mln investment over 2024 – 2027 with milestones

Financial Investor 40%
✓ Introductions to potential clients (factory owners) globally

15
Appendix

16
E3 Pilot Plant / 1.5kt annual capacity
Designed and produced in partnership with CDS, a 40-year old
innovation leader in industrial drying systems.

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E3 Pilot Plant / product characteristics*
DB-RE, Rohstoffqualität A n a l y s e n - A t t e s t Ausgabedatum : 17.11.22 7:27
Blatt 1
Stoffschluessel : 1921 00
Stoffname : BIO-Masse
Transportmittel :
Liefergewicht To. :
Probengewicht :
Technologische Analyse Chemische Analyse
* P r o b e d a t e n * mm % SA % Element %
- Lfd. Nummer : 940 Naesse 105 : * 16,32
Asche : 2,98
- Probenummer : DI22074393 (DIL582) P : 0,024
S : < 0,02
- Anf-St./Konto: 3606531960000 Pb : < 0,0005
Zn : 0,0349
- Datum von : 24.10.22 F - : < 0,003
Cl - : 0,015
- Uhrzeit von : C : 71,5
H2 : 4,25
- Datum bis : O : 21,0
N : 0,27
- Uhrzeit bis : H2O (geb) : 9,9
Gluehverl. : 1,46
- Ort : HOV IWF : 28088 (kJ/kg)
HUV IWF : 27214 (kJ/kg)
- Art : Einzelprobe Fl. Ant. : 37,0
NiO : 0,00
: Los Komponenten der Asche
Fe idA : 2,180
: Hand Fremd SiO2 idA : 4,240
TiO2 idA : 0,310
- Anzahl Proben: 1 Al2O3 idA : 1,230
CaO idA : 44,700
- Anzahl Carr. : MgO idA : 9,040
S idA : 5,900
- Kennzeichen : Na2O idA : 0,700
K2O idA : 10,700
- Met. Pruef. : Mn idA : 0,260
P idA : 0,820
- ISO 3271 : NiO idA : 0,006
V2O5 idA : < 0,010
- ISO 556 : Cr idA : < 0,007
WC idA : 2,060
Schüttg. t/m³ : ZrO2 idA : < 0,010
BaO idA : < 0,050
CuO idA : 0,023
SrO idA : 0,029
* P r ü f b e d i n g u n g e n * Co3O4 idA : 0,093
Cr2O3 idA : < 0,010
- Aggregat :
- Art : * produced by one of EU’s
- Belag :
leading steelmakers
- Text: Sonderprobe Holzpellets v.ECoal

unb = unbrauchbar, nb = nicht bestimmbar, kD = keine Dilatation, U = Unsicherheit, na = nicht auswertbar, * = Eingabe per Dialog

18
E3 Carbon relies on partnership with CDS
(legal framework)

Equipment engineering and factory supply Engineering and Equipment

(relies on E3 Carbon as tech licensor) (UK-based 40-year-old industrial engineering
leader, eligible for large global tenders)
• client’s factory design
• hardware manufacturing
• installation, launch, staff training and
Client ongoing problem-solving
CDS is
Biocarbon Tech licensing
shareholder
factory owner 50kt Factory and cooperation
in E3

Optional % ownership
together with Client
Tech and R&D
• IP (factory design and operations)
• new feedstock process development
Technology License Agreement
• ongoing improvements through real-
(relies on CDS as equipment supplier)
time production data monitoring
Pilot (lab) 1.5kt Factory

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About CDS

Ceramic Drying Systems (CDS) Group Ltd

(Stoke-on-Trent, UK)

Founded in 1983 to address numerous

industrial drying needs, CDS is today among
the key engineering and equipment providers
for biomass torrefaction employing 80 people
and operating in 10 countries. CDS is a minority
shareholder of E3 and it provides exclusive
license for R-O2 process for biomass.

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Disclaimer

This document contains forward-looking statements. Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on current beliefs, expectations and assumptions
regarding the future of the relevant business, future plans and strategies, projections, anticipated events and trends, the
economy and other future conditions. Because forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of
E3 Carbon GmbH or their respective affiliates’ control. Actual results and financial conditions may differ materially from
those indicated in the forward-looking statements. Forecasts are based on complex calculations and formulas that
contain substantial subjectivity and no express or implied prediction made should be interpreted as investment advice.
There can be no assurance that market conditions will perform according to any forecast or that the firm will achieve its
objectives or that investors will receive a return of their capital. The projections or other forward looking information
regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment
results and are not guarantees of future investment results. There can be no assurance that unrealised investments will
be realised at the valuations shown or in accordance with any return projections. Actual realised returns depend on,
among other factors, future operating results, the value of the assets and market conditions at the time of disposition,
related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the
valuations and projections contained herein are based. Past performance is not indicative of future results and nothing
herein should be deemed a prediction or projection of future outcomes. Some forward looking statements and
assumptions are based on analysis of data prepared by third party reports, which should be analysed on their own
merits. Third party sources referenced are believed to be reliable but the accuracy or completeness of such
information cannot be guaranteed.

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Contacts

Tom Sieverts Pavel Volichenko

CEO, business development CFO, operations

+49 172 402 6972 +41 79 501 5014

ts@e3carbon.com pv@e3carbon.com