CLEAN HYDROGEN PRODUCTION

Biomass to the Rescue

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Simon Greenshields, CEO Phibro & Chairman WVR

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June 13, 2022

Biohydrogen: The Carbon Negative Hydrogen Pathway

• We are a leader in the use of biomass feedstock and carbon capture and sequestration (CCUS) to produce low cost, carbon negative hydrogen
• Hydrogen from electrolysis and from fossil fuels with CCS at best only can approach carbon zero; biohydrogen provides a sustainable and economic pathway that permanently eliminates billions of tons of GHGs from the earth’s atmosphere
• Our approach utilizes gasifier technology, CCUS and biomass feedstock in world scale plants to produce carbon negative H2
• We see a large opportunity to build a high growth, high margin sustainable world-scale business in low and negative carbon transportation fuels and power using a combination of bio-sourced feedstocks, conventional fuels and CCS
• The best available technology for reducing GHG emissions is through the substitution of low carbon and negative carbon energy for fossil fuels
• Core to this strategy is the production, supply and utilization of carbon negative biohydrogen:
• Used directly as a transportation fuel
• Used to produce carbon negative “always available” electric power
• Used to produce ammonia as a product and for hydrogen transport, and
• Used as a feedstock for the conversion of natural oils and biomass to drop-in transportation fuels which utilize the existing fuels infrastructure

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Hydrogen Production Is not Complicated

• Practically speaking, there only are two hydrogen production pathways:
• Splitting water with electrolysis (or extreme heat)
• Syngas with water gas shift reaction (SWGS)
• H2 from electrolysis remains expensive and uses electricity that can be employed more efficiently in the reduction of the carbon footprint of the electric grids
• The mature SWGS technology of Steam Methane Reforming (SMR) currently produces approximately 95% of the world’s “gray” hydrogen, but at a CI Score of around 80
• The use of Carbon Capture and Sequestration (CCS) can result in ”blue” hydrogen with a lower “CO2” footprint, but this needs to account for associated methane emissions
• A 2021 Stanford/Cornell study, which accounted for methane emissions, calculated blue hydrogen only lowers the CI score by 9% to 12% relative to gray hydrogen
• Biomass provides a pathway to economical carbon negative hydrogen

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Electric Grids Still Have Large Carbon Footprints

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Electric Grid CI Scores

Europe: 278.1

Italy: 340.9

Norway: 26.1

Poland: 657.1

Electric Grids Still Have Large Carbon Footprints

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Electric Grid CI Scores

N. Amer.: 347.3

Mexico: 391.6

U.S.A.: 378.6

Canada: 123.9

Syngas from Gasification a Proven Technology

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Animation of gasification process

Retrofit Using Proven Technology Hydrogen Pod (Configuration A)

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NITROGEN

AMMONIA

REACTOR

NITROGEN

AMMONIA

+ OTHER

Retrofit Using Proven Technology Hydrogen Pod (Configuration B)

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Low-Cost Clean Hydrogen

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Multi-product High Value Monetization

H2

88% Solid Waste/Coal

12% Biomass

Across road transportation fuel

Ammonia Production

Pipeline sales

Baseload Power production

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First Class Partner Group with Several Years of WVR Project Planning

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US Department of Energy

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Biomass

Draws CO2 from air during life cycle

Carbon Sequestration

Captures and disposes of harmful gases

Hydrogen Power

Hydrogen from plant can be converted to provide countless clean energy options

Hydrogen fuel Ammonia for �Ag & Chem

Wabash Valley Resources: Carbon Cycle

• Not only do we see our technology producing net carbon negative hydrogen, analysis indicates that we will be able to produce this hydrogen at a discount to the of the cost of production of hydrogen produced by steam methane reforming (SMR) of natural gas, and an order of magnitude less than electrolysis
• SMR, which currently accounts for 95% of global hydrogen production, has been the low-cost method for producing hydrogen at around $2/Kg
• According to Argonne National Laboratory, for each Kg of H2 produced via SMR, 9 kg of CO2 are co-produced, giving SMR H2 a CI score of +79 gCO2e/MJ
• Even with CCS, which increases the cost of production, ”blue hydrogen” will remain significantly carbon positive
• Our initial plans for WVR hydrogen are to achieve a CI score of -15 gCO2e/MJ, with the potential to achieve better than -100 gCO2e/Mg as we increase the biomass feed percentage
• Fuel flexibility provides a significant cost advantage over SMRs. WVRs Hydrogen Pods are not exposed to very high gas prices as is currently the case in Europe and to a lesser extent the US

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Only Pathway to Low-Cost, Carbon Negative Hydrogen

• Saudi Arabia, along with Air Products, has announced a $5 BN plan to build a 27,000 Kg per hour green hydrogen project at the NEOM high tech business zone on the Red Sea coast to be in production by 2025
• This project equates to approximately twice the production capacity at WVR
• Feedstock costs at WVR compare favorably with NG for SMR projects and power costs for electrolysis units.
• Expected costs are approximately $2.00/ MMBtu for petroleum coke and $6.00/MMBtu for Corn Stover (biomass) yielding a weighted average cost of Approx. $2.50/MMBtu before operating and capital costs
• The project also benefits from 45Q CCS credit currently is $50/MT of CO2 sequestered. At $50/MT the estimated CCS credit is $0.70 per Kg of H2

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Superior Biohydrogen Economics

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WVR Terre Haute, Indiana Site

• Our first commercial plant in Terra Haute, Indiana is on pace to be online in 2025. This will one of the lowest cost producers of hydrogen and the largest producer of net carbon negative hydrogen in the world with a capacity of 14,000 Kg/Hr of hydrogen
• It also will comprise one of the world’s three largest carbon sequestration facilities with a CCS capacity of 1.6 million metric tons of CO2 per annum
• Initially it will use feedstock mix of waste coke and biomass, which, with CCS, is designed to result in a carbon intensity (CI) score for our hydrogen of negative 15 grams of CO2 equivalent per megajoule (gCO2e/Mg) at a net production cost of less than $1/Kg
• The knowledge and expertise we are amassing in biohydrogen production and CCS are unique
• WVR is the recipient of a grant from the DOE to develop clean hydrogen technology one of our partners the Gas Technology Institute is currently conducting demonstration plant tests using a variety of feedstocks
• WVR plans to use the experience gained at WVR to build an additional 9 Hydrogen Hubs over the course of the next decade
• WVR also intends to review expansion opportunities beyond the US in Europe, Africa and Asia

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Our Biohydrogen Strategy

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• In May 2018 The U.S. Department of Energy’s (DOE) Office of Fossil Energy (FE) selected the WVR project to receive approximately $10.2 million for cost-shared research and development under Phase II of an FOA to determine the feasibility for commercial-scale storage complexes that can hold 50+ million metric tons of carbon
• The project was overseen by Board of Trustees of the University of Illinois (Urbana, IL) and was successfully completed in July 2020
• The test well, associated seismography and flow tests and were designed to analyze various potential reservoirs and cap rocks in the Illinois Basin stratigraphy
• One of the target reservoirs possessed excellent porosity and permeability as well as meeting the other required criteria and demonstrated its suitability as a large-scale CO2 sink
• In May 2019 WVR partnered with OGCI and received additional project funding
• WVR submitted its application for a Class six permit to the EPA and expects to receive its permit in the 4Q of 2022
• Once complete the facility will become the largest US CO2 sequestration project accounting for approximately 1.6MM tons pa
• The facility also has the potential to become a regional sink for other projects

Carbon Sequestration Project

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Goldman Sachs equity research February 2022

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-20

-15 -10 -5 0

Kg of CO2 (e) / Kg of H2

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10

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Wabash Project (100% Biomass)

Grid Electricity + PEM

NG + SMR

Coal Gasification (CCS)

Bio-CH4 + SMR

Wood Chips + Gasification

NG + SMR (CCS)

Solar + PEM Nuclear + PEM

Wind onshore + PEM

Hydro + PEM Wabash Project (12.5% Biomass) Wabash Project (20% Biomass) Wabash Project (60% Biomass)

Lifecycle GHG emissions, kg/kg (H2, LHV)

The Cleanest Technology

*DOES NOT INCLUDE CARBON PENALTY FROM FUGITIVE CH4 EMISSIONS

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• Our business areas are operated to be sustainable from both ESG and economic perspectives
• Carbon optimized fuels are both long-term sustainable and long-term value-added
• Our long-term value-added strategy incorporates carbon capture, utilization and storage (CCUS) of carbon derived from biomass. Biomass feedstocks from non-food sources add no additional carbon to the atmosphere. Long-term storage in geologic formations of CO2 co-produced with the manufacture of biofuels can reduce further CO2 in the atmosphere and generate significant additional revenues via 45Q credits and/or carbon markets
• We aim to be the low-cost producer of low carbon and carbon negative energy and one of the low-cost operators of CCUS
• From a social perspective, much of our planet’s biomass is abundant in economically depressed regions of Africa, South America and Asia. In partnership with multi-lateral agencies, we see significant opportunities to benefit social welfare through production of and trade in biohydrogen and its carriers

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Strategic ESG Positioning