Glasspoint Solar, Inc

Solar Thermal Energy for Industry November 2019 Heat INDUSTRIAL SOLAR HEAT PAYS OFF More than 500 storage unit There is more final energy consumption of heat in the industrial sector than there is industrial manufacturers trust Pump Worldelect Energyricity consume Used worldwide. Electricity, however, is talked about more. solar heat worldwide. WHAT IS Heat Collector exchanger ENORMOUS GLOBAL HEAT DEMAND IN INDUSTRY SHIP? Heat INDUSTRIAL SOLAR HEAT PAYS OFF INDUSTRIAL More than 500 storage Industry Low-temp heat HEAT DEMAND unit Industry uses more (below 150 °C) SHIP is the acronym for Solar Heat for Transport Pump There is more final energy consumption of heat in the industrial sectorBoiling, than pasteurising, there is ON THE RISEindustrial manufacturers trust Residential sterilising, cleaning, drying, Industrial Processes and describes systems electricity consumed worldwide. Electricityof45 %world Coal, how energyever, is than talked about more. Other washing, bleaching, steaming, which provide solar heat in a factory. A collector 30 % pickling, cooking. solar heat worldwide. Collector 26 % any other sector WHAT IS Heat field heats a process fluid by means of solar Electricity More than 400,000 m² of exchanger ENORMOUS GLOBAL HEAT DEMAND IN INDUSTRY Medium-temp heat SHIP? radiation and a heat exchanger transfers this 22 % (150IND to 400USTRIAL °C) 13 % ) heat to a supply system or production process Industry 74 % Low-temp74 heat % HEATDistilling, nitrate DE melting,MAN dyeing,D 1.7 % th (below 150 °C) compression. SHIP is the acronym for Solarin theHeat factory for as hot water, air flow or steam. Transport 32 % Heat 30 % Natural gas Heat Boiling, pasteurising, = ON THE RISE Residential sterilising, cleaning, drying, produce Solar Heat for IndustrialIndustrial Processes and describesStorage units systems make it possible to use the 45 % Coal 85 EJ Other 24 % washing, bleaching, steaming, Average which provide solar heat in agenerated factory. A heatcollector at night-time. 26 % 30 % pickling, cooking. 48 % High-temp heat 15 % Oil Processes around thefield globe. heats a process fluid by means of solar ESTIF [4] Electricity (above 400 °C) annual growthMore than 400,000 m² of Medium-temp heat Material transformation radiation and a heat exchanger transfers this 31 % 22 % (150 to 400 °C) processes. of industrial 13 % 9 % Renewables heat to a supply system or production process Distilling, nitrate melting, dyeing, % th) 74 % 74 % 1 % Other 1.7 compression. in the factory as hot water, air flow or steam. 32 % Heat 30 % Natural gas Heat heat demand MAJOR INDUSTRIES GROWTH = Storage units make it possible to use the 1,300 million m² TOTAL FINAL ENERGY CONSUMPTION 2014: 360 EJ (EXAJOULE, see Glossary page 17); IEA [1] IRENA [2] produce SolarIndustry Heat segments for with Industrial highest number of realised SHIP plants PATH FOR 85 EJ Depends on IEA Renewable Energy for Industry 2017.24 Final% Energy Use excludes all EOR, oil refining, and gas purification energy; GPS market is larger. Average until 2030 [4] development 48 % generated heat at night-time.SHIP UP Page 2 | © 2019 GlassPoint Solar, Inc. High-temp heat of energy 15 % Oil Processes around the globe. ESTIF [4] (above 400 °C) annual growth prices POWERFUL RESOURCE Food and TO 200°C Material transformation 40 % 31 % processes. of industrial beverage 9 % Renewables 80 plants 1 %Reliable Other for heat demand MAJOR INDUSTRIES GROWTH 800 million m² millions of years Solar collectors 1,300 million m² TOTAL FINAL ENERGY CONSUMPTION 2014: 360 EJ (EXAJOULE, see Glossary page 17); IEA [1] IRENA [2] Industry segments with highestMachinery number of realised SHIP12 plants % PATH FOR Depends on untilproduce 2030 heat [4] 24 plants development SHIP UP 400,000 m² of energy No transportation prices POWERFUL RESOURCE Solar TO 200°C 90Food % and Textile 1040 % % Energy beverage 18 plants 2016 2030 80 plants Reliable for No taxation 800 million m² Photovoltaic Met by coal, SHIP-PLANTS.INFO [5] ECONOMICALLY REALISABLE POTENTIAL GLOBALLY; IRENA [3] millions of years Solar collectors modules produce oil andMachinery gas 12 % Independent of produce heat electricity 24 plants 400,000 m² No transportation geopolitical crisis FOUR REASONS FOR SOLAR HEAT Solar 90 % Textile 10 % Energy 18 plants 2016 2030 No taxation Photovoltaic Met by coal, SHIP-PLANTS.INFO [5] ECONOMICALLY REALISABLE POTENTIAL GLOBALLY; IRENA [3] 23.7 % modules9 produce % oil and gas 0.001 % Independent of Renewable energy share (including electricityRenewable energy share Solar share in final heat x geopolitical crisis 3 hydropower) in final global electricity in final heat consumption consumption of global FOUR REASONS FOR SOLAR HEAT consumption across all sectors of global industrial sector industrial sector REN21 Profit from the most Harvest three times Replace Increase powerful energy more energy from the sun imported fuels competitiveness of 23.7 % 9 % 0.001 % resource on earth than with photovoltaics with local jobs domestic manufacturing Renewable energy share (including Renewable energy share Solar share in final heat 3x hydropower) in final global electricity in finalVICIOUS heat consumption CIRC LE OF LOWconsumption DEPLOYMENT of global RATES Greatly step up communication Support financing models to Implement measures for consumption across all sectors of global industrial sector industrial sector IEA CONFIRMS efforts to raise awareness of reduce risks and initial costs raising energy prices (e.g. REN21 Profit from the most Harvest three times Replace Increase powerful energy more energythe from technology the sun among potentialimported fuels to small andcompetitiveness medium of carbon tax) or stipulating Solar heating High upfront Little visibility resource on earth than with customersphotovoltaics in industry. with local jobs industrialdomestic investors. manufacturing a renewable quota in investment of existing certain industries. costs plus low systems and cooling energy prices 70 % of turnkey 79 % of turnkey VICIOUS CIRCLE OF LOW DEPLOYMENT RATES Greatly step up communication SHIPSupport suppliers financing models to ImplementSHIP suppliers measures for IEA CONFIRMS not on track Three ways the vicious to break effortscircle to raise awareness of (strongly)reduce risks agree and initial costs raising(strongly) energy agree prices (e.g. Small number for 2 °C Long the technology among potential thatto smallSHIP hasand medium carbonthat tax) heat or supply stipulating of plants Low High upfront payback customers in industry. already been competitiveindustrial investors.in contractsa /renewable ESCO models quota are in Solar heating scenario periods Little visibility awareness investment of existing many markets, but is not known an importantcertain means industries. of costs plus low systems and cooling energy prices 70 % of turnkeywell enough to customers. 79 % of turnkeyincreasing deployment. not on track Three ways the vicious SHIP suppliers SHIP suppliers to break circle (strongly) agree (strongly) agree Small number for 2 °C Long that SHIP has that heat supply 2 of plants Low YOU FIND ALL EXTERNAL REFERENCES ON PAGE 19 OF THIS BROCHURE. THE ADDITIONAL DATA IS BASED ON THE INTERNATIONAL SURVEY AMONG SHIP SUPPLIERS DESCRIBED ON PAGE 8/9. payback already been competitive in contracts / ESCO models are scenario periods awareness many markets, but is not known an important means of well enough to customers. increasing deployment.

2 YOU FIND ALL EXTERNAL REFERENCES ON PAGE 19 OF THIS BROCHURE. THE ADDITIONAL DATA IS BASED ON THE INTERNATIONAL SURVEY AMONG SHIP SUPPLIERS DESCRIBED ON PAGE 8/9. Energy Prices in California Natural Gas CA Citygate, $/MCF 14

0 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17 Jan-19 Sep-89 Sep-91 Sep-93 Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11 Sep-13 Sep-15 Sep-17 May-90 May-92 May-94 May-96 May-98 May-00 May-02 May-04 May-06 May-08 May-10 May-12 May-14 May-16 May-18

160

140

120

100

- Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17 Jan-19 Sep-89 Sep-91 Sep-93 Sep-95 Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11 Sep-13 Sep-15 Sep-17 May-90 May-92 May-94 May-96 May-98 May-00 May-02 May-04 May-06 May-08 May-10 May-12 May-14 May-16 May-18

160 Competitive price 140 for solar electricity 120

100

80 Competitive price 60 for solar heat 40

50% Mandated purchase %

40% for solar electricity

30% Mandated purchase % 20% for solar heat 10%

0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

• VOLUME VOLUME VOLUME • Solar thermal technologies will come down in cost with volume • Learning curve similar to PV but deployment volumes to date are tiny

• No mandates: it must be cheaper from the beginning (very hard) • Competitive energy cost is much lower (very hard) • Solar heat projects must be co-located with end user (hard) • Land costs and permitting costs are much higher at industrial sites • Solar heat projects serve only one plant, maybe <20y plant life

Testing Program, Design Improvements, Opportunity Cost Mirrors <1.5 kg/m2

Heat lowers heavy oil viscosity and allows pumping to surface

SOLAR FIELD

Steam

Steam Feed Water OTSG Feed INJECTOR Water WELLS

Wellhead WATER SUPPLY Chokes

Page 14 | © 2019 GlassPoint Solar, Inc. GlassPoint 10 year old company started in California Operations in California, Oman, China, and Chile Initial 100% focus on EOR to drive volume Now serving broader range of industrial markets

Name Customer Location Size (MW) Status Operation Date

21Z Pilot Berry California USA 0.3 Pilot Complete 1Q 2011

SSGP PDO South Oman 7 Pilot Complete 4Q 2012

Miraah PDO South Oman 1000 300 MW online 3Q 2017 Aera Contract Belridge California USA 850 4Q 2021 (Shell/Exxon) Signed Mukhaizna Occidental South Oman 2000 Announced 2022

160 Competitive price 140 for solar electricity 120

100

80 Competitive price 60 for solar heat 40

LCFS >50% transportation reductions

LCFS ARB Average Closing Price $200

$195

$190

$185

$180

$175

$170

$165 Nov Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apr Apr May May May Jun Jun Jul 19 Jul 19 Aug Aug Sep Sep 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19

LCFS ARB Average Closing Price

$200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Jul 13 Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Nov 13 Nov 14 Nov 15 Nov 16 Nov 17 Nov 18 Nov Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar May 13 May 14 May 15 May 16 May 17 May 18 May 19 May

• Unlike cap & trade, no “floor”, but hard “cap”

• Repeated regulation changes create concern re future changes

• Solar heat is all capex, very low opex • 20-year credit price and program stability are critical to investment

• No measures have been put in place to address these risks • Dairy digester projects have “contract for difference” in development • “Green bank” and other underwriting programs have been proposed

Fully Automatic Washing With Water Recovery