Cleantech Power Corp.

Overview

The electrification revolution is well underway, but will solar and wind power alone help us reach the carbon-neutral emissions goals set by governments worldwide? It’s unlikely, as we’re already seeing a dwindling supply of necessary metals, but integrating hydrogen-based technologies may help cover the gap. It’s estimated that hydrogen cleantech could meet 12 percent of the world’s energy demand by 2050 and reach annual sales of approximately €630 billion.

Current clean energy storage technology costs are prohibitive to widespread adoption, but hydrogen-based technologies are more affordable. Affordability is vital to the worldwide adoption of clean energy, and hydrogen may even compete with conventional options soon. Interest in hydrogen tech is surging, and it is estimated that cumulative investments in renewable hydrogen in Europe alone could reach between €180 to €470 billion by 2050, and between €3 and €18 billion for low-carbon, fossil-based hydrogen. It’s clear that hydrogen should not be overlooked by those looking to invest in the clean energy transition.

Cleantech Power Corp. (NEO:PWWR, OTCQB:ALKFF) is a diversified company with business lines focused on developing, producing and commercializing clean energy technology. The company has active revenue streams while simultaneously developing advanced hydrogen-based technology for future solutions. Cleantech Power is led by a team of experts with experience in corporate administration, finance and utilities.

The company’s PWWR Flow Streams (PWWR Flow) solution is presently on the market and offers cost-effective, combined heat and power (CHP) for multi-residential and commercial applications. Its natural gas-powered CHP systems are cost-efficient, and can reduce air emissions and maintain grid connection for peak usage times and backup power.

Cleantech Power’s long-term goal with Fuel Cell Power NV is to develop advanced hydrogen-powered Cleantech Power cell technology that does not require a combustion process. These in-development fuel cells have already operated successfully in laboratory settings. The fuel cells are virtually silent, produce no vibrations, and the only by-product is pure water. Additionally, the Cleantech Power fuel cells primarily use nickel, graphite and plastic, creating a significant cost advantage over the platinum and palladium used by its competitors.

The company is diversifying and future-proofing its revenue streams by working towards indirect micro-CHP systems sales, direct sales of CHP systems, parts production and sales, and supportive services. Its CHP business line is actively generating revenue with 33 active targets and a pipeline of 23 proposals. PWWR presently has a pipeline of ~$50 million in project capital.

In an interview, CEO Frank Carnevale said, “The core of this business is developing the Cleantech Power. Over 15 European countries have signed on to the eventual conversion of natural gas systems to hydrogen. And when that hits and customers have hydrogen coming to their homes, our product will be the most affordable system you can use to power your home. So we’re developing that out, but in the short term, we have a diversified strategy that includes our CHP business that has real earnings to balance the investment package.”

The company executed a non-binding letter of intent with AmmPower Corp. (CSE:AMMP) for the development of a pilot project testing PWWR's off-grid fuel cell generator and AmmPower's ammonia cracking technology. The JV aims to demonstrate that green ammonia is an energy carrier that can bring clean 'Power to the People'. AmmPower is focused on developing technology to convert green ammonia into green hydrogen, a process called ammonia "cracking." With this cracking technology, hydrogen can be safely stored and transported around the world as ammonia, and upon arrival at its destination, be converted back into hydrogen for a cleaner and more efficient end-use.

Cleantech Power ’s wholly owned Belgium subsidiary, Fuel Cell Power NV, also launched the prototype of its micro-combined heat and power (CHP) fuel cell, named Jupiter 1.0 after the planet Jupiter, which is made up of roughly 90 percent hydrogen, Similarly, this PWWR fuel cell converts hydrogen to heat and electricity at approximately 90 percent efficiency. Jupiter 1.0 is built to supply power during peak demand periods and serves as a back-up when required for homes and small buildings.

Company Highlights

• Cleantech Power is a diversified investment platform focusing on developing and commercializing clean energy technology with active revenue alongside long-term innovation of hydrogen-powered fuel cells.
• The company operates through two global entities: PWWR Flow Streams (PWWR Flow), an AFCP brand, and Fuel Cell Power NV, a wholly owned subsidiary in Belgium.
• PWWR Flow Streams is focused on the development, ownership and operations of combined heat and power (CHP) assets. PWWR Flow assets deliver efficiency improvements of over 20 percent with reduced costs to customers in multi-residential and commercial applications. PWWR Flow has contracted existing CHP assets in Toronto, Canada, and has an additional pipeline of potential contracts valued at over $50 million currently in development.
• Fuel Cell Power NV is focused on the development, production and commercialization of micro- combined heat and power (micro-CHP) systems and off-grid and back-up power generators based on advanced Cleantech Power technology that generates zero CO2 emissions. Fuel Cell Power NV is working through milestones to deliver a commercialized Cleantech Power in 2024.
• AFCP’s diversified business lines encompass four revenue streams that provide active revenue now and opportunities for significant growth as its hydrogen-powered fuel cells are fully commercialized.
• The company is led by an experienced team of managers with a history of successfully leading organizations to profitability.
• The company recently executed a non-binding letter of intent with AmmPower Corp. (CSE:AMMP) for the development of a pilot project testing PWWR's off-grid fuel cell generator and AmmPower's ammonia cracking technology.
• PWWR launched Jupiter 1.0 - the prototype of a 4kW Cleantech Power unit on January 11, 2023, in Geel, Belgium to signal its transition to the commercialization phase.
• AFCP has executed a letter of intent with Progressus, a venture-stage green technology company, for a joint venture project to combine various Progressus technologies with AFCP fuel cells to develop zero-emission solutions for natural gas utilities to directly power both residential and commercial businesses across North America.

Key Platforms

Micro-CHP Cleantech Power

The company’s long-term goal is the full development and commercialization of its cost-effective hydrogen-powered Cleantech Power. Due to proprietary research and leveraging cheaper raw materials, this fuel cell technology is poised to become the most cost-effective power solution on the market for mass adoption of clean energy.

Project Highlights:

• Zero CO2 Emissions: The company’s fuel cell technology generates zero CO2 emissions with pure water as the only by-product. The fuel cell works by taking in ambient air and hydrogen to produce electricity, heat and water. These units are ESG-friendly to help end-users advance their ESG ratings and narratives.
• Tailored for Residential Markets: Several countries are converting from natural gas to hydrogen, and the Micro-CHP fuel cell will allow residential customers to leverage hydrogen gas to power their homes.
• Competitive and Unique Design: Other hydrogen fuel cells use expensive materials, such as platinum, to comprise the key components of the electrode while Cleantech Power ’s cell uses readily available and inexpensive materials, such as nickel and plastic. This innovative design provides a significant competitive advantage that enables mass adoption.

PWWR launched Jupiter 1.0, the Cleantech Power system prototype on January 11, 2023, in Geel, Belgium. This signals the technology's transition to the commercialization phase. PWWR's planned commercialized units include the micro-combined heat and power (micro-CHP) assets, and the off-grid and back-up power generator (fuel cell generators) systems. PWWR's prototype launch of this 4kW Cleantech Power unit marks an important milestone for the continued success of the company and brings PWWR closer to offering its cleantech solutions to a global market.

PWWR Flow Streams

PWWR Flow CHP systems is actively generating revenue with a pipeline of proposals to increase its profitability further. The total asset value of PWWR Flow sales pipeline is an estimated US$51.6 million. Its CHP units provide a cost-effective solution to producing electricity alongside heating and cooling.

Project Highlights:

• CHP systems for multi-residential and commercial applications
• Cost efficient at producing baseload electricity and heating/cooling
• Reduced emissions compared to alternatives
• Maintain connection to the grid for peak time use
• May be designed to provide backup power supply during power outages

Fuel Cell Generators

The PWWR off-grid and back-up fuel cell generators vary in power capacities. They are currently being developed to provide an intelligent alternative to the current diesel generators in the market. The PWWR fuel cell generators have a significant carbon footprint empowered with Cleantech Power technology with zero CO2 emissions.

Project Highlights:

• Operable with less pure “industrial” hydrogen that may contain up to 10 parts per million of carbon monoxide
• Designed to fill the increasing consumer demand trend for clean energy
• Price leading fuel cell manufacturing technology allows for high volume production
• Represents a complementary product line available on much shorter time frames than AFCP's Next Generation 3.0 microCHP system currently in development
• New vertical offers opportunity to address an immediate need while potentially accelerating revenue generation

Management Team

Frank Carnevale - Chief Executive Officer

Frank Carnevale is the Chief Executive Officer of Cleantech Power Corp. (NEO:PWWR) Over the past two decades, he has developed and managed several investments in cleantech and PropTech platforms, including originating over $2.5 billion in transactions in energy and utility sectors. Carnevale is passionate in his defense of underserved energy customers- residential and small/medium, industrial, commercial and institutional customers. In delivering in the global energy transformation, he bridges investors with opportunities to deliver customer-centric solutions. Carnevale previously served as chief growth officer and chief operating officer of a TSXV-listed company delivering design and build thermal energy systems, HVAC and Building Controls in Canada. Prior to that, he was founder and chief executive officer of a boutique consulting, advisory and development firm where he originated and developed energy and infrastructure transactions, including the development of a large wind farm, distributed energy and retrofit contracts, and mergers and acquisitions of several electric utilities. . Carnevale previously served on the executive board of the Energy Council of Canada among several industry organizations.

Joel Dumaresq - Chief Financial Officer

Joel Dumaresq has 30 years of experience in the financial sector, and for the last 12 years he has been the Managing Director of the Vancouver-based private equity firm Matrix Partners Inc. Dumaresq also has oil and gas executive management experience in the United Kingdom, East Africa and Asia, and has been instrumental in raising over $100 million for oil and gas ventures from public markets and industry farm-downs. He has extensive expertise in mergers and acquisitions and previously worked in a financial and investment banking role with RBC Dominion Securities. He is also the corporate secretary, CFO and director of the company.

Carmine Marcello - Advisor

Carmine Marcello advises governments, utilities and cleantech startups across the Middle East, North America and the Caribbean. From 2013 to 2015, Marcello served as chief executive officer of Hydro One Inc., one of Canada’s largest transmission and distribution companies, with a market cap of over $20 billion and over $23 billion in assets. He served in numerous executive roles from 2003, including asset management and strategy and planning.

Anthony Durkacz - Advisor (Investment Broker)

Anthony Durkacz has served as a director and the Executive Vice-President of First Republic Capital Corporation (FRCC) since 2014. Prior to co-founding FRCC, Durkacz was president of Capital Ideas Investor Relations. He previously served as the chief financial officer and a director of Snipp Interactive Inc., a global marketing solutions company that provides a modular software-as-a-service technology suite. Durkacz was instrumental in the financing and public listing of Snipp Interactive Inc. with operations in Canada, the United States of America, Mexico, and India. From 2006 to 2009, he served as chief operating officer and chief financial officer of MKU Canada Inc. and engaged in mergers and acquisitions of companies around the world. . Durkacz also served as the chief financial officer and a director of Astris Energi Inc., a dual-listed public company in the United States and Canada, which was acquired by an international conglomerate. Durkacz began his career at TD Securities Inc. on the capital markets’ trading floor. He holds an honors bachelor of business administration from Brock University with a major in both accounting and finance.

Tommy McKeith - Independent Non-executive Director

Tommy McKeithis an experienced public company director and geologist with over 30 years of mining company leadership, corporate development, project development and exploration experience. He's heldroles in an international mining company and across several ASX listed mining companies. McKeith currently serves as non-executive director of Evolution Mining Limited and as non-executive chairman of Arrow Minerals Limited. Having worked in bulk, base and precious metals across numerous jurisdictions, including operations in Canada, Africa, South America and Australia, McKeith brings strategic insights to CTL with a strong focus on value creation.