Next Hydrogen Solutions Inc · TSXV:NXH
Next Hydrogen Solutions — Investor Presentation (November 2022)
27 slides from Next Hydrogen Solutions's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
Innovation in Water Electrolysis TM Investor Presentation November 2022 NXH:TSXV NXHSF:OTC
Slide 2: Disclaimer
2 Disclaimer Legal disclaimer This presentation of Next Hydrogen Solutions Inc. (“Next Hydrogen” or the “Company”) is for information only and shall not constitute an offer to buy, sell, issue or subscriber for, or the solicitation of an offer to buy, sell, issue or subscribe for any securities in a
Slide 3: What is Next Hydrogen?
3 What is Next Hydrogen? Next Hydrogen is the only public pure-play designer & manufacturer of electrolyzers in North America. Our electrolyzers use electricity and water to produce hydrogen, which is utilized as a clean energy source. • Electrolysis is the only way to produce green hydrogen • Our d
Slide 4: Investment Thesis
4 Investment Thesis US$80B Addressable Market and less than 10 notable electrolyzer players globally Applications in materials handling, heavy mobility and industrial processes, which cannot be Hydrogen Economy Tailwind electrified Unprecedented government budgets, grants and subsidies driving
Slide 5: Hydrogen Economy Tailwind
5 Hydrogen Economy Tailwind 96% of countries are committed to the Paris To stabilize or reduce concentrations of CO2 in the atmosphere, the world Agreement needs to reach net-zero emissions as soon as possible 81% of society feel that companies have a vital role to play in meeting environmental targ
Slide 6: Unprecedented Commitment on Green H2 from Countries Globally
6 Unprecedented Commitment on Green H2 from Countries Globally Hydrogen could be The Nord Stream 2 gas used to deliver 30% EU aims to install 2x40 GW pipeline could deliver of Canada’s end-use energy by 2050 of renewable hydrogen hydrogen from Russia to 270 GW of electrolyzers will be electrolyzers
Slide 7: Significant Electrolyzer Market Opportunity
7 Significant Electrolyzer Market Opportunity Market Opportunity by 2030 Market Opportunity by 2050 100 GW Global Hydrogen Production Mtpa Scenario >$12T 600 TOTAL ADDRESSABLE MARKET 500 Hydrogen 200 MW Opportunity by 2050 2020 Capacity of 2030 Target of Electrolyzers Green H2 Green H2 Production Pr
Slide 8: Next Hydrogen's Focus on Green Hydrogen Applications
Next Hydrogen’s Focus on Green Hydrogen 8 Applications Solutions to Power and Green Industrial Operations 95% of hydrogen used for industrial purposes is derived from fossil fuels and is responsible for 830 million tons of CO2 annually Hydrogen produced from green energy can dramatically lower c
Slide 9: World class hydrogen expertise
World class hydrogen expertise Robert McGillivray 20+ years experience in cleantech commercialization including 10 years in Raveel Afzaal hydrogen product sales, 10+ years capital markets experience as an Michael Stemp marketing, business and equity research analyst and venture corporate development
Slide 10: Producing Hydrogen: The Electrolyzer Landscape
10 Producing Hydrogen: The Electrolyzer Landscape Pure Play Electrolyzer Manufacturers Next Hydrogen captures key benefits of both electrolyzer technologies Electrolyzer Manufacturers PEM • High Current Density • High Dynamic Response • Lower Cost Materials • Enhanced Durability Dynamic Fuel Cell Ma
Slide 11: Competitive Differentiators
Competitive 11 Differentiators Superior Dynamic Higher Current Density Scalable Design Response Up to 2.5x current density, leading Superior dynamic response enables With approximately the same to 2.5x more hydrogen produced Next Hydrogen’s electrolyzers to footprint, Next Hydrogen’s while using the
Slide 12: Significant Advancement in Electrolyser Design
12 Significant Advancement in Electrolyser Design Electrolyzer Design All electrolyte and gas-liquid separation occurs at each cell plate, removing limiting Gases and liquids design features of separated right at the conventional cell plate Unique cell electrolyzers plate design Cooled electrolyte r
Slide 13: System Overview
13 System Overview NH-300 Hydrogen Generation System Schematic Open architecture with the best commercially available cell components Compact units, pre-assembled Electrical and Controls Container and ready to drop in at sites Electrolyzer Module Patented cellular architecture removes fluid-gas flow
Slide 14: Commercial Testing and Validation
14 Commercial Testing and Validation Successful Pilot Project "The team successfully demonstrated the continuous operation of the cell with the required quality of hydrogen stream from the electrolyser in a liquid phase catalytic exchange system.” - AECL MD&A One of the Largest On-site H2 Generation
Slide 15: Patent Portfolio Geared Towards Green Hydrogen from the Beginning
15 Patent Portfolio Geared Towards Green Hydrogen from the Beginning Filing Priority Location(1)(2) Cell Electrolyzer Module July 2008 US (3), PCT, CA, Module Core water electrolyzer module design EP, CN, IN Power Dispatch System for Electrolytic Production of Power Hydrogen from Wind Power Octobe
Slide 16: Next Hydrogen Product Roadmap
16 Next Hydrogen Product Roadmap 2022 • Advance NH100 and NH300 demonstration projects • Implement cost reduction and efficiency improvement upgrades on NH100 and NH300 containerized product line. • Develop multi-stack solution with Black & Veatch (20MW) • Advance project with Hyundai and Kia to dev
Slide 17: Financial Highlights
17 Financial Highlights Balance Sheet at September 30, 2022 Share Capitalization 1. Share capitalization at March 31, 2022 NXH:TSXV NXHSF:OTC
Slide 18: Conclusions
Confidential 18 Conclusions • Next Hydrogen has developed the world's first Alkaline electrolyzer that is designed to: Integrate with intermittent renewable power Operate at up to 2.5X the current density of competitors Produce the lowest levelized cost of green hydrogen • Next Hydrogen is par
Slide 19: Appendix
Appendix NXH:TSXV NXHSF:OTC
Slide 20: Senior Leadership
20 Senior Leadership President & CEO Chief Financial Officer Chair of the Board Board Director CFA, B.Math, B.Econ CPA, CA, CPA(IL), MAcc BSc, BA, MBA M.Eng, MBA Raveel Afzaal Kasia Malz Allan Mackenzie Walter Howard 10+ years capital markets 15+ years diverse financial Owner and principal of
Slide 21: Board Contributes Invaluable Leadership Experience
21 Board Contributes Invaluable Leadership Experience Board Director Board Director Board Director Board Director BA, MBA BSc, MSc CPA, CA, MAcc, EMBA BA, MBA Michael Pyle JP Clausen Susan Uthayakumar Anthony Guglielmin CEO of Exchange Income VP of Engineering - Data 25 years experience in P
Slide 22: Alkaline and PEM Industry KPIs
22 Alkaline and PEM Industry KPIs PEM Alkaline State of the art FCH-JU Target State of the art FCH-JU Target Parameter Unit 2020 2024 2030 2020 2024 2030 Electricity Consumption at Nominal Capacity kWh/kg 55 52 50 50 49 48 Capital Cost US$/(kg/d) 2,500 1,800 1,200 1,500 1,200 940 US$/kW 1,100 820 59
Slide 23: Corporate Led Hydrogen Projects Increasing Globally
23 Corporate Led Hydrogen Projects Increasing Globally Electrolysis Produced Hydrogen Capacity Increasing Exponentially 3,500 3,109 2,986 3,000 Cumulative MWel Capacity 2,500 2,000 1,465 1,500 1,000 709 500 241 47 57 61 79 99 139 8 19 24 42 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 24: Hydrogen's Supply Needs to be Decarbonized
24 Hydrogen’s Supply Needs to be Decarbonized Natural Gas Water CO2 Emissions Production Cost kg/kg H2 (lifecycle) USD/kg Global Hydrogen Production Scenario Max Min CO2 Tax Max Min Mtpa 11.3-12.1 600 9.2-11.1 8.8-11.1 Electricity Process Emissions 0.8-4.9 GREY 0.6-1.9 0.8-2.1 500 2020 2030 2050 202
Slide 25: Illustrative Excess Solar Energy Capture for H2 Production Scenario Assumptions
25 Illustrative Excess Solar Energy Capture for H2 Production Scenario Assumptions Key Assumptions Solar Energy Large solar installation that sells the first 50% of its name plate capacity through a Power Purchase Agreement Electrolysis capacity to capture the remaining 50% of solar generation
Slide 26: Levelized Cost of Hydrogen ($/kg)
26 Illustrative Excess Solar Energy Capture for H2 Production Scenario Sensitivity Sensitivity Analysis – Impact of Electricity Pricing The lower the electricity price, the better Next Hydrogen’s capital cost advantage becomes The low-capacity factor for capturing excess solar energy results in
Slide 27: The Green Hydrogen Opportunity
27 The Green Hydrogen Opportunity Large Existing Market for Hydrogen – Green To Replace Hydrogen Market Set To Grow Grey 8x 70 million tons per year = US$120 billion annually 545 95% of hydrogen used for industrial purposes is derived from fossil fuels 830 million tons per year CO2 emissions 6
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