Stockholm Exergi, the first large-scale project with Capsol's technology, awarded EUR 1.7 billion by the Swedish government

Stockholm Exergi's Bio-CCS (BECCS) project, with the help of Capsol's carbon capture technology, will permanently sequester 800000 tons of CO2 each year. The Swedish Energy Agency has agreed to provide SEK 20 billion (EUR 1.7 billion) for what is set to become one of Europe’s first large-scale negative emissions plants. Sweden’s investment in Stockholm Exergi’s carbon capture plant is a significant de-risker to the project, in addition to the over three million tons of carbon removal offtake agreements signed in 2024 with Microsoft and Frontier on behalf of Alphabet, Meta, JP Morgan Chase, and H&M Group and others. Värtaverket biomass-fired plant of Stockholm Exergi today powers, heats, and cools 190,000 households in the Stockholm region. The Swedish government's award is expected to lead to the final investment decision (FID) for the BECCS project as early as possible by the end of 2024, starting the construction of the carbon capture plant and associated facilities. Stockholm Exergi became the first company to select Capsol Technologies as its technology supplier for a large-scale carbon capture project, selecting a licensing agreement for CapsolEoP® (end-of-pipe) in July 2022. Since then, the robustness of the project and Capsol's technology has been validated through several significant milestones, including: • Successful implementation of pilot projects at Värtahamnen (2023) and Piteå ETP (2024) • Secured offtake agreements for over 3 million tons of CO2 removal per year for 10+ years with corporate buyers in 2024, with flexible options to increase volume by 300-500% by 2026. • Obtained FEED positive recommendations from Wood PLC in 2023 and started detailed design and procurement in Q4 2024. In addition, Stockholm Exergi and Capsol have continuously developed the CapsolEoP® technology. To further enhance performance, Capsol has recently started an R&D project with Stockholm Exergi, KTH Royal Institute of Technology and AirZyme to develop a bio-based promoter for accelerated CO2 capture and release. Biomass is one of the key market segments of Capsol Technologies, along with energy from waste, cement, and gas turbines. "The advancement of the Stockholm Exergi BECCS project is a catalyst for other biomass-fired power plants across Europe and North America, where we see growing interest in our technology. It is great to continue our R&D relationship with our partners to enhance the performance even further," said Wendy Lam, CEO of Capsol Technologies. The payment terms of the licensing agreement between Capsol Technologies and Stockholm Exergi were met by the end of 2024 and, therefore, Capsol expects to recognize these revenues in Q4 2024. As previously communicated, the agreement includes a discount to Capsol's current license pricing due to Stockholm Exergi's first-mover status. To join our email distribution list for stock exchange and press releases, please sign up at capsoltechnologies.com/investors.