NorSun PresentationSeminar «Solceller og bærekraft»Oslo, 19. Juni 2019

Carsten Rohr

NorSun ASKarenslyst Allé 9C, 0278 Oslo, Norway

(+47) 97 41 50 00post@norsuncorp.no

Our Vision

A sustainable future with clean energyfor all.

Our Mission

To be a leading manufacturer of silicon ingots and wafers for premium solar cells, through innovative technology, sustainable production and operational excellence.

Our Values

Dedication, Innovation, Inclusivity and Integrity

- CONFIDENTIAL - 2

• Mono-crystalline solar ingot and wafer manufacturer

• Founded in 2005 by Dr. Alf Bjørseth

• Specialized in high performance n-type

• Supplier to tier-one cell manufacturers

• State-of-the-art production facility pursuing an aggressive technology and cost road map

• Low CO2 footprint and power cost, free cooling water

• Well positioned for growth in an attractive market segment

NorSun facilities and organization

NorSun at a glance

NorSun business and the strategic position

• Current capacity of 450 MW/year

• Headquartered in Oslo, production in Årdal

• Good access to highly skilled talent

• 230 employees

NorSun solar value chain position

Polysilicon Wafers Cells & modules

NorSun premium product:

- Highest efficiency

- Lowest CO2 footprint

- Extensive track record

HQ in Oslo

Production facility in Årdal

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0

20

40

60

80

100

120

140

160

180

2006 2008 2010 2012 2014 2016 2018 2020

Multi

Mono

NorSun uniquely positioned in the fastest growing segment

Source: Bloomberg New Energy Finance 2018, ITRPV 2019, NorSun

Global PV new build Targets 10% of the high efficiency mono market

70%

30%

20%

80%

10%

90%

Wafersegments

Highefficiency

N-typeniche

146 GW 102 GW 20 GW

Mono

Multi

n-mono

p-mono

NorSuntarget

Other n-mono players

n

3

GW

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Conversion to N-type likely to accelerate

N-type forms the basis for highest efficiency cells(cell efficiency)

10%

12%

14%

16%

18%

20%

22%

24%

26%

P-multi P-mono N-mono

N-mono technologies:

- IBC (SunPower)

- Heterojunction (Panasonic, Hevel, Meyer Burger)

- TOPCon (LG)

- N-PERT (LG, others)

Conversion to N-type likely to accelerate

PV system capex split

2010 2018

Module’s lower share of total capex benefits high-efficiency premium products

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Conversion to n-type expected to accelerate

n-type gaining market share

Mono will dominate and further boost by n-type• mono ≈60% in 2019 • n-type material share will increase (HJT, Topcon)

ITRPV | Dr. Markus Fischer

Source: ITRPV 2019 Technology Roadmap, B-NEF

Current and potential N-type players(non-exhaustive)

Companies with existing or planned N-type cell production

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NorSun provides low CO2 footprint value

NorSun with industry leading CO2-footprint(grams CO2/Watt)

French market

French tenders at about 2GW per year, increasing to 3GW

- New energy policy announced to expand PV from 8.5 GW installed capacity in 2018 to over 40 GW by 2030

- Installations to increase to over 3.5 GW per year until 2030

French tenders score CO2 footprint of the modules in addition to price

- CO2 footprint/Watt = 20%-30% of score

Other countries to follow

EU is evaluating to introduce environmental policy such as ECO-label and green public procurement

Korea is planning similar program as France

More countries expected to follow as part of the global push for environmentally friendly solutions

NorSun in unique position with unprecedented CO2 footprint , based on Lifecycle Analysis (LCA) certified by French authority (ADEME)

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NorSun with best CO2 footprint

The French system incentivizes environmental and process improvements. It has created awareness in NorSun to become the greenest possible producer of ingot and wafer.

NorSun is working closely with ENOVA (Norwegian Government energy saving agency) to reduce waste, save energy and introduce new energy efficient processes.

High quality wafers for highest cell efficiency => improving silicon per Watt

Efficient recycling process for silicon off-cut in ingot manufacturing (such as ingot tops, tails, side-cuts and off-spec material)

Readily available cooling water reduces electricity consumption for chillers

Efficient sawing process with thin diamond wire

Thin wafers down to 130µm

Minimal use of chemicals

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Carbon Foot Print roadmap

NorSun has developed a CFP roadmap, reducing waste and improving resource efficiency

Technical cooperation and development with customers to improve efficiency

improving silicon per Watt (currently just 2.7 g/Wp, in the future < 2.0 g/Wp possible)

The main CFP activities include

High ingot utilization

High wafer quality for highest cell efficiency

Slicing with 40µm core diamond wire

Ultra thin wafer road map

Recycling/reuse of silicon kerf (saw dust).

Applications include metallurgical industry, feedstock in poly production and the possibility for use in battery anodes.

New slicing fluid with low CFP

Recycling of slicing fluid

NorSun is piloting Argon recycling with good results

NorSun is designing their own future hot zone with estimated 15% reduced energy consumption

Recycling of potscrap from ingot pulling

First 40µm core wire test cut• 125mm wafer, 140µm thickness• MeyerBurger 291 DW saw

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100%

63%

China primepeer estimate

NorSun

Power usage difference. No cooling towers needed

Free natural cooling water

• NorSun linked to Hydro’s power and process water system and benefits from low network tariffs

• Joint access to industrial service providers

Several sustainable competitive advantages

Cheap, 100% renewable hydro power

Co-location with Norsk Hydro Continuously improving production process

Hydro/NorSun industrial park

100%

80%

China primepeer estimate

NorSun

Sources: SB1 Markets Research, NorSun estimates

Price of electricity (kWh)

Illustration

• NorSun Business system

• Continuously seeking cost and volume improvements

• Critical processes reviewed weekly

• Lean Management

• Structured improvement program

Shaping

Wafer

Ingot

Årdalstangen

NorSun

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Scaling up to reach a world class cost level

450 MW current capacity

Continued development of plant with first production in 2008

Upgrade and debottlenecking of existing plant to add 280 MW

270 MW of new capacity from next generation pullers, block and wafering equipment

Significant potential at current site for up to 4-5 GW capacity

Reaching world-class scale within n-type mono

450 450

280270

Current Phase 1 Full expansion

450 MW

1 000 MW

4-5 GW

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Loan allocation of NOK 195m approved by Enova BoD

Attractive terms;

Unsecured loan

Converted to grant if technical KPIs are not met

No amortization until Q4 2025

Loan and grant from Innovation Norway approved (loan 80m, grant 10m)

Attractive terms, including two years grace

195

80

10

70

80

80

515

Sources

Funding for expansion Phase 1 secured N

OK

m

New shareholder

ABN AMRO’s Energy Transition Fund

New shareholder

Existing shareholders

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• Located in Årdalstangen industrial park together with Norsk Hydro’s anode plant.

• Agreement with Hydro to access land for further expansion post Phase 1, potentially up to 5 GW

• NorSun and Hydro benefits from low network tariffs

• NorSun linked to Hydro’s power and process water system and hold joint access to industrial service providers

Area plan will utilize existing facilities and infrastructure

Puller hall expansion Wafer area expansion

Phase 1

Highly attractive to expand on existing site

Available for further expansion

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Current New

Crucible size 20’’/22” 28”

Ingot length – 8’’ (m) 1.5/1.8 3 → 4

Productivity (MT/PU/month) 1.8/2.3 → 3.2

Hot-zone design NS Supplier → NS

Control System NS Supplier → NS

Cooling jacket NS NS

Quartz Crucibles

Hot-zone Design

NS Control System

Improvements pulling productivity

Confidential

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Cutting thinner wafers with thinner wire

Wafering development (Indexed 2012 = 100)

Number of wafers per kg block with CAGR of 7% from 2012-2022

Technology shift from slurry based to diamond wire wafer slicing technology end 2011

Improvements accomplished in close cooperation with customers and suppliers

Comments NorSun reduction in wire thickness (to scale)

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20

40

60

80

100

-

50

100

150

200

2012 2013 2014 2015 2016 2017 2018 2020 2022

Wire thickness (µm)

#Wafers/kg block

Wafers/kg Block Core Wire Wafer Thickness

14

100µ 80µ 60µ 40µ120µ 50µ

2011 2104 2016 2017 2018 2019?2011 2014 2016 2018 Q2’19 Q4’19

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Cost road map to yield significant further reductions

Unit cost reduction (USD/Wp) – proven track record and planned cost reductions

15

-65%

-35%

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It simply feels good to usehydropower to produce

solar cell materials