STEPPING UP TO BRING EMISSIONS DOWN OXY LOW CARBON VENTURES MARCH 2022
INVESTOR UPDATE 3 TODAYS KEY PARTICIPANTS Vicki Hollub Rob Peterson Ken Dillon Richard Jackson President and Senior Vice President, International President, U.S. Onshore CEO President and CFO Oil & Gas Operations Resources and…
INVESTOR UPDATE 4 TODAYS DISCUSSION 01 02 03 04 CARBON MANAGEMENT THE LOW-CARBON TECHNOLOGY 1POINTFIVE BUSINESS VISION OPPORTUNITY OVERVIEW STRATEGY Positioned to Defining carbon Accelerating a low- Advancing with speed…
SUMMARY 5 STRATEGY TO ADVANCE THE NET-ZERO ECONOMY WITH SPEED AND SCALE Climate change is real and urgent. CO2 Oxy formed 1PointFive to deliver removal technologies must be deployed now CCUS solutions that include: Carbon Engineerings…
OXY LOW CARBON VENTURES 6 STRATEGY FRAMEWORK: KEY TAKEAWAYS 01 02 The OLCV strategy enhances Oxys business value and creates a path to net-zero for ourselves and for others Global net zero requires technological solutions with speed…
7 THE FUTURE OF SUSTAINABILITY Captured emissions enable net-zero A NET-ZERO transportation & industry SYSTEM With our low-carbon investments, we are connecting technologies to ZERO-EMISSION NET-ZERO OIL POWER create a…
8 01 CARBON MANAGEMENT VISION Weve set an ambition to achieve net zero on our total carbon inventory, including the use of our products by 2050 We believe Oxy is advantageously positioned to capitalize on opportunities in emerging…
FROM INNOVATION TO 9 Oxy is investing in and accelerating CCUS REAL-WORLD SOLUTIONS technologies to bring new businesses and solutions to marketour first is 1PointFive OXY 1POINTFIVE OXY LOW CARBON VENTURES LEADING THE…
PATHWAY TO NET ZERO 10 Oxy has set the following goals, among others, to achieve net zero across our total emissions inventory in accordance with the Paris Agreement1: 2024 2032 2040 2050 BEYOND Reduce total operational…
POSITIONED TO ACCELERATE 1111 Our existing infrastructure and experience lay a unique foundation for our expansion into A NET-ZERO ECONOMY low-carbon markets WORLDWIDE OPERATIONS CO2 EOR MAJOR PROJECTS OXYCHEM Experienced,…
DIRECT AIR CAPTURE & AIR TO FUELS CO2-TO-PRODUCT ZERO-EMISSION POWER SOLUTIONS MANUFACTURING 12 KOH & PVC FROM OXYCHEM TO DAC POINT-SOURCE CAPTURE LOW-CARBON DIESEL AND JET FUELS MADE FROM ATMOSPHERIC CO2…
13 02 THE LOW-CARBON OPPORTUNITY Limiting global temperature rise to 1.5C will require steps to eliminate and capture human- generated CO2 emissions and remove historical emissions from the atmosphere 1PointFive is developing…
THE CO2 CHALLENGE 14 GLOBAL CO2 REDUCTION The Paris Agreement set a global warming target of well PRE-INDUSTRIAL below 2C, calling for efforts to pursue a limit of 1.5C. This will require that atmospheric CO2 concentrations be no…
15 CO2 CHALLENGE Curbing temperature rise to 1.5C requires rapid deployment of multiple solutions including point-source capture and GETTING carbon removals TO NET ZERO GLOBAL Current emissions reduction EMISSIONS PROJECTION…
BY THE NUMBERS 16 OUR TARGETED MARKET OPPORTUNITIES INTERNATIONAL AVIATION CARBON REMOVALS U.S. POINT-SOURCE CAPTURE DECARBONIZATION 15,000 2,600 1,200 MTPA MTPA MTPA BY 2050 10,000 20,000 MTPA carbon U.S. industrial sources…
DAC ADDRESSABLE MARKET 17 10,000 15,000 MTPA of carbon removals are expected to be required to 15,000 MTPA carbon achieve net zero and curb temperature CO2 emissions/cost removals to achieve net-zero emissions rise to…
18 CO2 CHALLENGE MAJOR U.S. INDUSTRIAL CO2 EMISSION SOURCES U.S. industrial sources emitted 2,600 MTPA in 2019 Less than 22 MTPA are captured and sequestered1 Existing CO2 Pipelines 1Source: 2019 EPA GHGRP and Global CCS…
IATA CO2 REDUCTION PROJECTION & GOALS 19 AVIATION INDUSTRY: SAF, LCAF AND CARBON REMOVALS DAC carbon removal credits Technology Improvements PROJECTED EMISSIONS provide a near-term, lower- cost pathway for the aviation Operational…
CARBON INTENSITY OF GLOBAL OILS1 20 0.75 0.75 tonnes of difference in carbon intensity DE-COMMODITIZING COMMODITIES Tonnes CO2e / Bbl Canada Cold Lake CSS Dilbit Product decarbonization results in 0.5 Canada Athabasca…
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 21 STRATEGIC INVESTMENT APPROACH Oxy is leveraging its carbon management expertise, experience and infrastructure to accelerate the global development and commercialization…
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 22 OLCV TECHNOLOGY, PROJECTS AND PLATFORMS ZERO-EMISSION CO2 CAPTURE & PIPELINES & CO2 CARBON TRACKING CARBON UTILIZATION & POWER REMOVAL GAS PROCESSING SEQUESTRATION…
CCUS DEVELOPMENT Multiple key drivers have converged to enable the proliferation 23 KEY DRIVERS of CCUS facilities and scaling of new CCUS technologies TECHNOLOGY POLICY MARKETS DAC, point-source capture, Policy support enables…
24 1POINTFIVE CCUS PLATFORM READY FOR COMMERCIAL DEPLOYMENT DAC, point-source capture, sequestration and AIR TO FUELS technologies demonstrated and tested, ready for commercial scale Expanded Oxy assets and subsurface recognized…
25 03 1POINTFIVE TECHNOLOGY OVERVIEW 1PointFive technology components include: Carbon Engineerings Direct Air Capture & AIR TO FUELS solutions Geologic sequestration hubs NET Power and/or other zero-emission power Carbon…
HIGHLIGHTS DIRECT AIR CAPTURE TEAMED UP WITH CARBON ENGINEERING TO DEPLOY TECHNOLOGY TO REMOVE CO2 FROM THE FIRST FACILITY EXPECTED TO REMOVE UP ATMOSPHERE AT SCALE TO 1 MILLION TONNES OF CO2 ANNUALLY FIRST COMMERCIAL DAC…
27 CARBON Carbon Engineerings Direct Air Capture technology brings ENGINEERINGS together proven equipment and processes in a new way to deliver a scalable global solution for atmospheric CO2 removal DAC TECHNOLOGY ADVANTAGES…
MODULAR WHERE IT MATTERS 28 SCALING TO A 1 MTPA DAC PLANT Commercial-scale removal capacity will be achieved through modularity and repeatability of air contactors and use of industrial-scale equipment in the centralized processing…
CARBON ENGINEERINGS 29 AIR TO FUELS PROCESS AIR TO FUELSTM facilities can be co-located with Direct Air ILLUSTRATIVE AIR TO FUELS Capture sites. Pure CO2 captured from DAC will feed into UTILIZING A FISCHER TROPSCH (FT) PROCESS the…
30 The AIR TO FUELS process produces an FT crude that has been AIR TO FUELS certified through two CORSIA-eligible jet fuel pathways FUEL SYNTHESIS BLENDING PATHWAY Blending CONVENTIONAL JET FUEL FT Synthetic Paraffinic ALCOHOL-…
31 We believe AIR TO FUELS SAFs are favorably positioned against AIR TO FUELS competing biofuels and represent a new class of fuel that is both low in SCALE carbon intensity and scalable. WITH LOWER High CARBON production volume…
NET POWER AT-A-GLANCE WORLDS FIRST ZERO-EMISSION NATURAL GAS POWER GENERATION SMALL FOOTPRINT 24/7 OPERATION COMPLEMENTS WIND AND SOLAR POWER ZERO WATER REQUIRED FOR PROCESS EXPECTED TO BE A ZERO-EMISSION POWER SOURCE…
NET POWER 33 TECHNOLOGY NET POWER OVERVIEW OXY-COMBUSTION OVERVIEW NET Powers platform uses a semi-closed loop cycle that captures all Traditional plants burn methane in air, producing N, NOx, CO and HO, CO2 and uses it as its…
NET POWER 34 FLEXIBILITY FUTURE PLANT DESIGN OPTIONS INDUSTRIAL-SCALE AND UTILITY-SCALE FUEL COMPATIBILITY DESCRIPTION USE CASE DESCRIPTION USE CASE Industrial-scale: Metals manufacturer builds Multiple fuel types can drive…
OVERVIEW 35 GEOLOGIC SEQUESTRATION CO2 INJECTION CO2 INJECTION NET-ZERO OIL PRODUCTION SALINE FORMATION INVESTOR UPDATE
36 04 1POINTFIVE BUSINESS STRATEGY Under our current support scenario, we expect to have three sequestration hubs online by 2025 and to build seventy 1 MTPA Direct Air Capture Facilities by 2035 Oxy has demonstrated success…
DEVELOPMENT AT SCALE 37 1POINTFIVE OVERVIEW A wholly-owned Oxy subsidiary, 1PointFive is a durable, integrated CCUS platform with a mission to curb global temperature rise to 1.5C by delivering carbon capture, sequestration,…
DIRECT AIR CAPTURE 38 TECHNOLOGY ENGINEERING & CONSTRUCTION DAC FIRST-MOVERS AND EARLY ADOPTERS ARTIST RENDERING
DIRECT AIR CAPTURE 39 PROGRESS TOWARD DAC 1 LICENSE TO BUILD Exclusive DAC and AIR TO FUELS license for U.S. deployment and OLCV has a worldwide agreement as the execution partner for all DAC and AIR TO FUELS deployments INNOVATION…
CURRENT SUPPORT SCENARIO1 40 1POINTFIVE DAC DEVELOPMENT 70 DIRECT AIR CAPTURE PLANTS EXPECTED TO BE ONLINE BY 2035 Europe We plan to build Direct Air Capture facilities in regions that meet key criteria: Have public policy and…
DAC DEVELOPMENT SCENARIOS 41 Current support scenario assumes todays policy, voluntary and compliance markets Net-zero support scenario assumes increase in global policy incentives and demand in voluntary and compliance markets led by…
MAJOR 42 ABU DHABI - AL HOSN GAS PLANT 1.3 BCFD sour gas project (25% H2S) PERMIAN - DAC 1 PROJECTS State-of-the-art sulfur recovery units SUCCESSFUL Produces and pelletizes 5% of worlds sulfur TRACK Many process elements RECORD…
43 DIRECT AIR CAPTURE COST DOWN Cost of Capture Roadmap SOME EXAMPLES LCOC1 /t MOVING AIR 600 Improved capture efficiency of air contactors Reduces number of air contactors needed 550 Thousands of innovation tasks Improvements in…
44 DIRECT AIR CAPTURE TECHNOLOGY MATURATION AND SCALE DRIVE DOWN LEVELIZED COST OF CAPTURE PER TON OF CO2 CAPTURED EXPECTED COST CURVE Rapid scaling provides pathway to significant reductions in levelized cost CAPEX and OPEX cost…
GETTING TO 70 DAC FACILITIES 45 ENGINEERING & SUPPLY CHAIN SCALABILTY Visionary Vendors selected to provide six key types of Economies of scale for 1 MTPA equipment Modular, repeatable air will be achieved with aqueous…
1POINTFIVE 46 POINT-SOURCE CAPTURE POINT-SOURCE CAPTURE CORE MARKETS 50+ pre-FEED projects in multiple industries across the United States In commercial discussions with key point- ETHANOL REFINING AMMONIA source emitters…
POINT-SOURCE CAPTURE 47 SUPPORTING PROJECTS ACROSS INDUSTRY SECTORS ETHANOL BIOFUELS The OLCV team has been Carbon capture and transportation of CO2 CO2 offtake, transportation and sequestration actively engaged in CCS project from…
POINT-SOURCE CAPTURE 48 MARKETS AND DRIVERS FEASIBILITY OF REGIONAL SEQUESTRATION HUBS DRIVEN BY INTERSECTION OF SEVERAL KEY FACTORS: High concentration of low-cost capture projects with additional regulatory or policy incentives…
CO2 STORAGE 49 DEDICATED SEQUESTRATION HUBS Our hub-based model is a scalable solution that allows access to a shared carbon infrastructure, bringing more options to emitters looking to explore more viable carbon management…
CO2 STORAGE 50 HUB DEVELOPMENT CURRENT SUPPORT SCENARIO 3 DEDICATED SEQUESTRATION HUBS Project Tundra EXPECTED TO BE ONLINE BY 2025 Multiple land/pore space access agreements executed with expectation of more than 100,000 net…
PROJECT INTERSEQT 51 KEY STRATEGIC SUCCESS DRIVERS FOR POINT-SOURCE CAPTURE & SEQUESTRATION 01 02 03 INDUSTRY STRUCTURE COST STRUCTURE ECONOMIES OF SCALE Will require complex Emitters will require incentive to Securing…
PRODUCT DEVELOPMENT & ENABLEMENT 52 Products created and enabled by 1PointFive support the decarbonization of global industry PRODUCTS ENABLED PRODUCTS CO2 Feedstock Low-Carbon Fuels Carbon Removal Credits Net-Zero Oil…
CCUS PROTOCOLS 53 AND METHODOLOGIES High-integrity, internationally recognized CCUS protocols and methodologies for generating tax and carbon credits are paramount for scaling the CCUS industry Secured 1st two MRV plans approved…
DAC CARBON REMOVAL 54 CREDIT DEVELOPMENT Generating carbon removal credits with DAC facilities by removing CO2 from the atmosphere 01 1PointFive monitors CO2 capture and sequestration and submits validation, monitoring and…
55 DAC carbon removal credits provide a near-term, lower-cost pathway for the AVIATION CHALLENGE aviation sector to decarbonize while SAF production and infrastructure increase SAF COSTS and SAF costs come down ARE HIGH & VOLUME IS DAC…
AIR TO FUELS 56 GLOBAL SAF PRODUCTION COSTS EXPECTED TO DECLINE THROUGH 2050 AIR TO FUELS production costs are expected to rapidly decrease over the next 10 years Conventional jet fuel and, with continued production cost improvement…
NET-ZERO OIL: A CLOSED-LOOP 57 SYSTEM FOR ENERGY PRODUCTION DAC paired with EOR allows us to proactively capture the lifecycle emissions of a barrel of oil Enables affordable energy utilizing existing FUEL USED NET-ZERO OIL…
DAC, NET-ZERO OIL AND THE EOR BUSINESS 58 Pairing DAC with existing EOR operations supports global decarbonization while enhancing Oxys business value HISTORIC CURRENT FUTURE 01 02 03 04 05 Increased Low Low Margin…
CCUS TECHNOLOGY AND MARKET ADVANCEMENT 59 ROADMAP TO COMMERCIAL DEVELOPMENTS 2021 2024 2025 2030 Beyond VOLUNTARY & COMPLIANCE POLICY COMMODITY DE-RISK & INNOVATE MANUFACTURING MODE DEVELOPMENT NET ZERO CURRENT DIRECT AIR…
1POINTFIVE 60 CAPITAL PLAN & PRIORITIES Near-term priority is to execute 1PointFives development plan while ensuring fit to Oxys cash flow priorities. Long-term priority is to maximize value over time for Oxys shareholders by…
1POINTFIVE 61 CAPITAL FUNDING CONSIDERATIONS Funding Principles 2021 2024 2025 2030 Beyond DE-RISK & INNOVATE MANUFACTURING MODE COMMODITY DEVELOPMENT Capital will be allocated based on strong and growing market demand capable of…
CREATING VALUE CREATING THE PATH 62 FOR THE BUSINESS TO NET ZERO FOR OURSELVES AND OTHERS FUTURE OLCV TECH DEVELOPMENT 01 Accelerating and commercializing technologies with speed and scale to support global emissions reduction…
DIRECT AIR CAPTURE 63 ILLUSTRATIVE DAC ECONOMIC MODELING TAM MODEL REVENUE MODEL COST MODEL Total Addressable Market (TAM) Carbon removal credit volumes DAC 1 LCOC expected to be in the range of 300 to Net carbon removal credit…
DEDICATED SEQUESTRATION HUB 64 ILLUSTRATIVE SEQUESTRATION ECONOMIC MODELING1 VALUE CHAIN MODEL REVENUE MODEL POINT-SOURCE CCS ECONOMICS Long-term, minimum-volume sequestration agreements include: Capital and Capital Charge Costs…
66 APPENDIX
GLOSSARY OF TERMS 67 45Q Compliance Carbon Market A federal tax credit for each tonne of CO2 captured and sequestered A market for carbon credits and low-carbon products driven by jurisdictional mandates and industry-specific…
GLOSSARY OF TERMS 68 Hard-to-Abate / Hard-to-Decarbonize Net Zero Industries and processes where emissions reductions are difficult to achieve in a A balanced state where all CO2 produced by human activity is negated short timeframe…
LEVELIZED COST OF CAPTURE 69 Initial assumed plant life 25 years, WACC 7% Current support scenario with 45Q includes 12 years of tax credit generation Electricity Maintenance Natural Gas Royalties OPEX Sequestration Property…
70 Direct Air Capture is expected to provide a competitive solution for the hardest-to- DIRECT AIR CAPTURE decarbonize industriesrepresenting 5,000 MTPA. The cost-to-abate for these ECONOMICS industries is up to 1,000/tonne today 1…
INVESTING IN A LOW-CARBON ECONOMY 71 STRATEGIC TECHNOLOGY INVESTMENT PORTFOLIO OLCV has a license to 1PointFive's mission is to Developing zero-emission Developing a CO2 utilization commercialize and deploy commercialize DAC at scale…
OLCV CCUS TIMELINE - FUTURE 73 DAC 1 DAC 1 FEED ENDS GROUNDBREAKING DAC 1 START UP Complete FEED in 1PointFive 1PointFive starts up 2Q2022 groundbreaking DAC 1 late 2024 CONTINUED GROWTH for DAC 2H2022 DAC & AIR TO FUELS…
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