Ocean GeoLoop : Letter from our CEO

It´s all about the way we work.This is the simple sentence of explanation I tell when asked about how it's all possible. It's about the way we work. That sentence reveals the true power of collaboration, partnerships and dedication. Done the right way, it releases immense energy in complex development and commercialization processes and not at least: it enables Ocean GeoLoop to move fast.

This is also the way we can characterize 2022, and the development so far in 2023. We are moving fast, and the way we work is a catalyst for continued performance. And for those who believe it is all easy, and can be replicated by others, I can tell you that the Ocean GeoLoop way of working is only gained by strong motivation, highly experienced personnel and strategic and systematic hard work - and not at least the deep engagement by the technology inventor, innovator and founder of Ocean GeoLoop, Hans Gude Gudesen, "Gude" in short.

CEO og Ocean GeoLoop, Odd-Geir Lademo.

From where comes this drive and sense of urgency? The earth is stressed by the growing number of people, in constant need for energy, food, resources, and general welfare. Our current, unbalanced welfare has been gained through massive exploitation of fossil resources with associated climate and environmental emissions with negative consequences. Many believe that the oceans, covering 70% of the area of the earth, also represent the X-factor in resolving our growing and combined climate, environmental and resource crisis, thus our first name Ocean.

How do we approach it? Firstly, by developing technology to capture man-made emissions to the biosphere; in principle the climate gases to atmosphere, and phosphorous and nitrogen compounds to the oceans. Accordingly, in 2021 we installed a large-scale prototype of the GeoLoop Column - our novel, multi-functional, ocean-based dome-system enabling biomass production, ocean purification and oxygenation. In 2022 we took a new step on our journey when introducing our carbon capture technology that captures point source CO2 emissions, using natural and harmless processes. Secondly, we emphasize circular economic principles, functioning value chains and business models that create shared value for Ocean GeoLoop, our customers and the society. Therefore, our strong focus is on network operation as an essential ingredient for our business.

One of the main events in 2022 was the listing on Euronext Growth Oslo, where we presented to the broader set of investors our way to use nature to solve the challenges of our time in a circular way. The primary focus in 2022 was the development of the carbon capture technology, and we received broad investor interest following the commencement of operations of the pilot plant at Norske Skog Skogn, Norway. At the time of writing, we have continued to mature our pilot into an autonomous industrial plant, currently exceeding 1200 consecutive hours of operation. In parallel, we have entered into several commercially oriented collaborative activities focused on full-scale CCUS applications in Mid-Norway and at Herøya, Norway, the latter with the world's leading fertilizer company Yara. In accordance with our technology roadmap, we have also built a down-scaled carbon capture unit at SINTEF´s premises to gain even more speed in further optimization of the technology. We are further building and verifying a digital process model that allows for rapid extrapolation for various customers and customer segments.

Installation of Ocean GeoLoop carbon capture module

Our technologies are run by electricity. In 2023, we plan to pilot the e-Loop technology, with purpose to produce electricity from low-quality heat, with the aim to further increase the attractivity and lower the cost of industrial CCUS projects. To this end, the competence, capacity and deliverables from our subsidiary Energi Teknikk AS will be important.

To manage our expanding activity we are building our organization, both by new recruitment of highly qualified employees, and by the formation and optimization of our corporate structure.

Our technological, market and organizational development is supported by our strong balance sheet, where our financial flexibility was increased further by the NOK ~100 million investment by Chevron during the year. I am happy to confirm that Chevron is a true added-value partner that brings much more to the table than financial strength. We feel strong support and engagement from Chevron´s people and a true passion for our future success.

With all these developments, it might have been tempting to give bold statements about short term targets, but Ocean GeoLoop has the "show, don´t tell" policy embedded in our DNA. We have stated that our technology will help companies and countries around the globe to reach their net zero goals by using nature's own processes. In 2023 we will show you more.

Thank you for the strong support on the first stages of the journey.