Hydro Oil & Energy

Hydros Corporate Venture Vehicle in the Energy Space

Norsk Hydro Technology Ventures

Norsk Hydro focus on New Energy

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Hydrogen Wind power Energy Technology Ventures Fund CO2 handling and sequestration Green certificates and CO2 emission quota trading

H2

CO2

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External drivers for looking at VC opportunities in energy sector

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Liberalisation of the energy market in EU and NA Continuous surge in energy demand - leading to shortage of supply Issue of global warming Distributed generation Reliable power for ITC Utilities are seeking market differentiators Hydro is well positioned through technological competence, R&D resources and as a potential user of new technologies

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NTVs energy space

Renewable Energy conversion
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Distributed Generation
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Enabling

Upstream oil and gas

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Wind Wave Solar Bio Tidal

Electrolysis Reforming Gasification GTL

Micro turbines Fuel cells Stirling Internal combustion

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Trading Metering Load management Remote control

Storage
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Developing technology of strategic importance Products/ services leveraging internal competence

Batteries Flywheels Hydrogen Zinc

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Internal drivers and goals for Hydro

- Overlapping financial and strategic goals
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Leverage the competencies, portfolio and brand name of O&E

Strategic
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Financial

to create financial returns NTV

Transfer external market knowledge, skills and cultural competence to stimulate internal innovation
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Window on technology and business models Transfer of organizational / entrepreneurial skills

Organisational

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NTV Overview
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Total fund size: 350 MNOK (~50 MUSD) Technologies within the Oil & Energy area Geographical focus: Europe and North America Influential position in portfolio companies often board position A demanding and value-adding investor Investment size of $1 4 MUSD Co-investment oriented Clear exit in mind (3-5 years)

Return Potential / Risk Level

Seed Early Growth Late

Stage of development

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NTV Portfolio

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Investment in funds

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Nth Power Fund II (US) US$ 122M fund. Focus: Enabling, DG and Renewables

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SAM Private Equity Fund (Switzerland) 49M Focus: Renewables and DG

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Energivekst (Norway) NOK 690M Focus: Upstream oil and gas (restructuring, private equity)

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Direct investments

Total vendor of oxygen removal (deox) and oil/water purification (NO) NTV 22%, Board member

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Wave energy technology (UK) NTV lead investor, syndicate with SAM and 3i. NTV Board member

Controllable inductance for industrial and transmission & distribution applications NTV lead in NOK 23 M, VC round, Board member

Zinc-air fuel cell/battery system for long-term backup solutions (US) Board observer

Enabling technology for peak load management / load shifting (US) Board observer

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NTV Team Brings Commercial and Technical Experience and Network

Richard G. Erskine (Managing Director) z BSc Chem Eng., MSc Petr. Eng., MBA z Joined Hydro in 1985 z Held senior technical, project management commercial positions within Hydro Oil and Energy z Heavily involved in formation of current upstream strategy

Dag vreb (Technical Manager) z BSc Mech. Eng., MSc and PhD in ceramics z Joined Hydro in 1990 z Rresearch scientist in the Research Center z Formerly responsible for R&D within the hydrogen field

Tore Jacobsen (Investment Analyst) z MSc Industrial Econ. & Technology Management z Joined Hydro in 2002 z Before joining Hydro, consultant in Boston Consulting Group (BCG)

Alex Tham (Investment Manager) z BAc (Accounting), MBA, CFA, CPA z Joined Hydro in 1997 (Singapore) z Hydro Corporate Strategy Team z Extensive experience from M&A activities

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NTV is Hydro Oil & Energy's strategic and financial venture vehicle
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Major energy conglomerate

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lu Operation in most parts of the world e Pr Offshore operation op Chemical plants os Sourcing / manufacturing / marketing / regulatory competence iti Technology and project management on World leading aluminium company
2 oil and energy related research centres 170 researchers in oil and energy Experimental infrastructures and testing facilities External academic network

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Significant Research and Development Activity

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Credibility in the market place, door-opener, relationship with customers Internal and External Networks covering the whole value chain aspects of oil and energy business

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