#1National Energy N NATIONAL ENERGY EXPLORER National Energy CORPORATION OF TRINIDAD AND TOBAGO N Manufacturing / Renewable Energy Choosing the Right Nearshore Manufacturing Opportunities to Invest In 3rd November, 2021 Presented by: Ms. Marcia Maynard Manager, Investment Facilitation National Energy Corporation of Trinidad and Tobago Limited [email protected] THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRINIDAD AND TOBAGO LIMITED#2National Energy CORPORATION OF TRINIDAD AND TOBAGO N DISCLAIMER National Energy Corporation of Trinidad and Tobago Limited (National Energy) has agreed to make this presentation to the attendees of this event. National Energy makes no representation as to the accuracy of the information contained herein and advises that no reliance should be placed on that information. The information in this presentation is based primarily on publicly available sources, which National Energy is not responsible for preparing or verifying. The information provided shall not be binding on National Energy, its shareholders, board of directors, employees and/or agents, and has no legal effect and in no circumstances shall the contents be relied upon for any reason whatsoever. No responsibility is accepted by or on behalf of National Energy, its shareholders, board of directors, employees and/or agents for any decisions made by the recipients of such information pursuant to receipt of the information nor shall National Energy be responsible for any direct or indirect consequences as a result of any reliance on the information being provided by National Energy herein. A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRIEDAD AND TOBAGO LIMITED 2#31 PRESENTATION OUTLINE 10 Corporate Overview National Energy CORPORATION OF TRINIDAD AND TOBAGO 2 3 4 ①NGC Group Green Energy Agenda 10 Attractiveness of T&T for Manufacturing/ Renewable Energy Investments Investment Opportunities in the Renewable Energy/Clean Energy Space A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED 3 N#4National Energy CORPORATION OF TRINIDAD AND TOBAGO N 01 CORPORATE OVERVIEW A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED 4#5CORPORATE OVERVIEW N National Energy CORPORATION OF TRINIDAD AND TOBAGO THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRINIDAD AND TOBAGO LIMITED 5#6National Energy CORPORATION OF TRINIDAD AND TOBAGO N 02 NGC GROUP GREEN ENERGY AGENDA A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED 6#7• Foster/Establish strategic Partnerships amongst Universities • Stakeholders & . Multinationals - N National Energy CORPORATION OF TRINIDAD AND TOBAGO THE NGC GROUP GREEN ENERGY AGENDA Transitioning towards a Sustainable Energy Future Trinidad and Tobago's Natural Gas Value Chain Upstream PHOENIX PARK GAS PROCESSORS LIMITED Petrochemical 八 Production ם Power Generation • • Green Ammonia • Green Methanol • Green & Blue Hydrogen Renewables Energy Efficiency Green & Blue Hydrogen Metal and Heavy Industry • Conversion of existing fleet until EV • Micro LNG Biogas CNG CNG Light Industrial Commercial Sector - LNG Midstream Methane Reduction Estate, Port & Marine supporting Infrastructure Downstream National Energy CORPORATION OF TRINIDAD AND TOBAGO Renewables Micro LNG Biogas • Small Scale LNG to the Caribbean • ALNG GHG Reduction • Bunkering • Super ESCOS N 7#8GHG CSRU • Group GHG Audit . • Carbon Sequestration • Water Conservation • Waste Management • NGC and NGC Group Sustainability Report • Green Energy Information Hub . THE NGC GROUP GREEN ENERGY AGENDA Renewable Energy BP/Shell/BP Lightsource Solar Opportunity • Solar Park Project Educational Programmes on Solar Energy • Clean Energy . Strategic Partnerships • Onshore/Offshore Wind Resource Assessment • Support RE integration into LIC Sector · Key Elements Energy Efficiency Initiatives Promotion and Enhancement of Energy SmarTT App • National Energy • • Efficiency Action Plan for Trinidad and Tobago Energy Audit Pilot Study/Lights Off SuperESCO Programme Reduce 2019 Energy Consumption by 10% by 2022 • Methane Focus National Energy CORPORATION OF TRINIDAD AND TOBAGO N Fuel Switching . Leak Detection and • CNG / EV's • Repair Program Methane Satellite Monitoring Membership with GHG/Methane Bodies . • • • Hydrogen Economy Micro LNG for the Caribbean • Fuel Bunkering Bio-Methane Renewable gas integration into NGC System Natural Gas for Cooking • A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRIEDAD AND TOBAGO LIMITED 00#9National Energy CORPORATION OF TRINIDAD AND TOBAGO N 03 ATTRACTIVENESS OF T&T FOR MANUFACTURING/ RENEWABLE ENERGY INVESTMENTS A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED 6#10N National Energy CORPORATION OF TRINIDAD AND TOBAGO RENEWABLE ENERGY POWER GENERATION POTENTIAL IN TRINIDAD AND TOBAGO Untapped Renewable Energy Market in Trinidad and Tobago The Government of Trinidad and Tobago has a target for 30% of electricity generation to be from renewable energy by 2030 As the first renewable energy projects in Trinidad and Tobago only started in 2021, there is a major first-mover opportunity for investors. Promising outlook: ■ Attractive solar irradiation and wind power potential Trinidad and Tobago electricity consumption¹ million megawatt hours Forecast 7.1 4.7 9.9 9.2 8.2 ☐ 650MW of installed renewable energy capacity required by 2030 in Trinidad and Tobago. 3.0 ☐ ☐ $7Bn of Solar PV renewable energy investment projects is estimated to be required in Trinidad and Tobago by 2027 assuming 100% of generation is provided by solar PV (as guided by the country's final Integrated Resource Plan). Trinidad and Tobago's market share is expected to be 15% renewable energy capacity needed in the Caribbean by 2027. 1990 2000 2010 2018 2025 2030 10#11✰ LOGISTICS/ELECTRICITY SUPPORT Transport infrastructure Strong and stable INFRASTRUCTURE logistics infrastructure with advanced road networks, major industrial ports and an efficient air transport system National Energy Electricity infrastructure CORPORATION OF TRINIDAD AND TOBAGO Trinidad and Tobago ranks 2nd among countries in Latin America & Caribbean for its performance in electricity access and electricity supply quality. 5th in market access and infrastructure in Latin America & Caribbean (Source: FDI Benchmark based on Legatum Institute, 2019) 16th globally in quality of electricity supply & accessibility (Source: Global Competitiveness Report, World Economic Forum, 2019) Trinidad & Tobago 99/100 2 Chile 100/100 Costa Rica 96/100 1 3 (Source: Global Competitiveness Report, World Economic Forum, Switzerland, 2019) N 11#12Point Lisas • Six multi-user piers N National Energy CORPORATION OF TRINIDAD AND TOBAGO PORTS MARITIME INFRASTRUCTURE & INDUSTRIAL ESTATES • Oil and gas logistics support services Berthing and unberthing of vessels Gulf of Paria Caribbean Sea Chaguaramas Chagterms Part-of-Spain Point Lisas - Savonetta Pier -ISCOTT dock Towago La Brea Union Industrial & Labidco Estates, Brighton Port New energy-based projects La Brea - Union Industrial Estate - LABIDCO - Brighton Dock Point Fortin • Energy Services • Port Facilities • Warehousing Point-a-Pierre THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRINIDAD AND TOBAGO LIMITED Galeota Port • Galeota Port Energy Services Port Facilities Warehousing • Office Space 12#13Source: Ministry of Finance RENEWABLE ENERGY INCENTIVES National Energy CORPORATION OF TRINIDAD AND TOBAGO Incentive Import Duty Exemptions Zero-Rated Vat Tax Credit for Solar Water Heaters Description Import Duty Exemptions are granted for "machinery, equipment materials and parts for the manufacture or assembly of Solar Water Heaters". Zero-Rated Vat granted for complete Solar Water Heaters, solar PV systems and wind turbines. Tax Credit for Solar Water Heaters: Where an individual, in a year of income commencing 1st January, 2011, purchases solar water heating equipment for household use, that individual shall be entitled to a tax credit of 25% of the cost of the solar water heating equipment, up to a maximum of TT $10,000 (maximum tax credit of TT $2500.00) Act Valued Added Tax Act Income Tax Act N 150% Wear and Tear A 150% wear and tear allowance of the expenditure incurred on: Allowance Customs and Excise Duty Exemptions 1. The acquisition of plant, machinery, parts, and materials for use in the manufacture of Solar Water Heaters; or 2. The acquisition of: wind turbines and supporting equipment; solar photovoltaic systems and supporting equipment; or Solar Water Heaters. According to the Act, several items "will be allowed for importation free of customs and excise duties as long as they are not manufactured in the desired quantities and quality in Trinidad and Tobago." The list of items includes "environmentally-friendly and/or energy- saving devices such as solar panels, heating equipment. Finance Act No. 13 of 2010 Trinidad and Tobago Tourism Development Act, 2000 13#14Source: Ministry of Finance Incentive MANUFACTURING INCENTIVES Description Fiscal Incentives (i) Import Duty Concessions Approved Small Company Status Free Trade Zones Allowances to the manufacturing sector Tax exemptions for the Housing Sector Customs duties on the construction of an approved project; (ii) Value Added Tax; and N National Energy CORPORATION OF TRINIDAD AND TOBAGO (iii) Income tax on dividends or other distribution, other than interest, out of profits or gains derived from the manufacture of the approved product during the tax holiday period. Exemptions from Customs Duties on raw materials, machinery and equipment and in some cases packaging material based upon the provisions of the Third Schedule of the Customs Act, Chapter 78:01 (as amended). Approved Small Company Status is a designation granted to a Limited Liability Company, allowing it to derive a tax relief for a period of five (5) years. Free Zone activities that qualify for approval include manufacturing for export, international trading in products, services for export and development and management of free zones. Sales into the customs territory are treated as extra regional imports. Where a person carrying on a trade incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, there shall be made to him, for the year of assessment in the basis period for which the expenditure is incurred, an allowance (in this Part referred to as "an initial allowance") equal to 90% of the expenditure incurred in the provision of machinery and plant for the purposes of that trade. There shall be exempt from income tax until the year ending 31st December 2018, the gains or profits derived from the initial sale of a residential house site, being part of a land development project, provided the owner of the land produces a certificate from the Minister with responsibility for housing in support of the claim for exemption Act Fiscal Incentives Act, Chapter 85:01 Third Schedule of the Customs Act, Chapter 78:01 Corporation Tax Act, Chapter 75:02 Free Zones Act, Chapter 81:07 Chap. 85:04 Income Tax (In Aid of Industry) Act Section 45C (1) of the Income Tax Act, Chapter 75:01 14#15Source: Ministry of Finance ACROSS SECTOR INCENTIVES National Energy CORPORATION OF TRINIDAD AND TOBAGO Incentive Research and Development Facility (RDF) Description (i) for a single company project is TT $500,000; (ii) for a business alliance of two or more companies is TT $1,000,000; and (iii) for patent registration is TT $300,000. Co-Financing Companies can enjoy reimbursement, through exporTT, for a portion of the costs associated with entry into selected export markets. A company shall receive financial support on pre- approved investments, purchases, costs or expenses. Importation of Goods for temporary use The Comptroller may give permission to any person to import any goods without payment of duty thereon, upon being satisfied that the goods are so imported for temporary use only. Special conditions are applicable THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRINDAD AND TOBAGO LIMITED Act Chapter 78:01 Customs Act N 15#16National Energy CORPORATION OF TRINIDAD AND TOBAGO N 04 INVESTMENT OPPORTUNITIES IN THE RENEWABLE ENERGY/ CLEAN ENERGY SPACE A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED 16#17N National Energy CORPORATION OF TRINIDAD AND TOBAGO INVESTMENT OPPORTUNITY RENEWABLE ENERGY POWER GENERATION Project Background Description: Two solar projects will be built in Trinidad during the period 2021-2022 led by a consortium comprised of bp, Shell T&TEC ORANGEda GROVE SUBSTATION icarigua Trincity ORANGE GROVE 20 megawatt 60 hectares and Lightsource bp ☐ Location: Brechin Castle and Orange Grove Impact: Among the largest energy generation projects in the region contributing heavily towards national renewable energy targets and reduction of carbon emissions ent Project Specifications sas ◎ Brechin Castle: 587 acres over three sites; 92MW facility generating 225,303 MWh per year ☐ Orange Grove: one location on 148 acres of land; 20MW solar farm expected to supply 50,417 MWh per year bp lightsource bp California Pacific Avenue Oropuno Bo Oropune Churchill Roc Piarco Sevill BRECHIN CASTLE 92 megawatt 238 hectares T&TEC BRECHIN Dow Villag CASTLE SUBSTATION Southern Main Road Esperanza Village Phoenix Park POTENTIAL SUBSTATION LOCATIONS Soledad 17#18National Energy CORPORATION OF TRINIDAD AND TOBAGO INVESTMENT OPPORTUNITY SOLAR PV MANUFACTURING Solar PV and Associated Component Manufacturing Float Glass Manufacturing previous research ranked Trinidad and Tobago as having the ability to be a top tier producer given our cost structure Solar PV Module Assembly - Manufacturing powerhouse of the Caribbean. Ability to leverage market size and skillsets NEX Aluminum Components - Fabrication capabilities available locally to support sectors A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINDAD AND TOBAGO LIMITED N 18#19N The Opportunity: INVESTMENT OPPORTUNITY CARIBBEAN SOLAR ASSEMBLY Establishment of a Solar Photovoltaic Plant in Trinidad and Tobago to serve the Caribbean Region. Objective: To serve the Solar PV needs of the region while providing jobs and Foreign Direct Investment. Specifics: Total Investment Estimate: USD$100 million Type of Investment: Operator with Equity Timeline for establishment: 12-18 months Asset Ownership Structure: TBD Overarching Goal: Creation of a new industry for self-sufficiency and energy independence in the Caribbean National Energy CORPORATION OF TRINIDAD AND TOBAGO Enabling Caribbean Market: ☐ ☐ Current renewable energy implementation is at 17%. Goal - 90% by 2050 ■ New policy developments to support solar proliferation ☐ Need for distributed solar to supply reliable and affordable power to island states - At the Special Strategic Session Achieving Regional Energy Security Through Enhanced Cooperation and Integration: Considerations for a Regional Approach to Energy Security, CARICOM "Endorsed the Caribbean Solar Assembly Concept presented by the Caribbean Climate-Smart Accelerator, recognising the value proposition and benefits that Member States can derive from the venture". 19#20INVESTMENT OPPORTUNITY CARIBBEAN SOLAR ASSEMBLY Strong Drivers for Solar Module Exports to the Caribbean Unsubsidized solar market High insolation levels US$18.4 BILLION • Net benefits to renewable energy investments in Caribbean to 2040 (IDB 2019). US$16 BILLION • To meet the RE targets set out in Caribbean NDC's by 2030 (IRENA 2019). 2.00 Growing 1.50 Demand 1.00 0.50 0.00 2000 2002 2004 2006 Bp Stats 2021 Solar PV Generation in Caribbean (TWh) 2008 2010 THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRIEDAD AND TOBAGO LIMITED 2012 2014 2016 2018 2020 5.0 4.0 3.0 2.0 1.0 0.0 National Energy CORPORATION OF TRINIDAD AND TOBAGO N 2000 2001 6 0 " 2002 06 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bp Stats 2020 Cumulative installed capacity (GW) by Technology 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Renewable power in the Caribbean - TWH 2011 2013 2015 2017 2019 Source: BNEF 2014 2015 20 2016 14.96 2017 5.11#21N INVESTMENT OPPORTUNITY National Energy CORPORATION OF TRINIDAD AND TOBAGO ENERGY STORAGE, BATTERY ASSEMBLY & BATTERY RECYCLING To successfully utilize energy from renewable sources, energy storage systems are important for ensuring a continued supply of energy is available Strength of T&T as a Location for Energy Storage, Battery Assembly & Battery Recycling Presence of resources for solar and wind power generation ■ Experience in large scale production of energy products that fit into an established industry cluster for energy storage, battery assembly, and battery recycling Experience in setting up large scale projects ◉ Export-ready infrastructure ◉ Battery ENERGY STORAGE Ownership of relevant assets (ports, maritime infrastructure, industrial estates) Country-set targets signal government's commitment to renewable energies: 10% renewable energy target by 2021 and 30% by 2030. Trinidad and Tobago is a signatory to the Paris Agreement adopted at COP 21. Government's commitment to renewable energy generation in Trinidad and Tobago 21#22INVESTMENT OPPORTUNITY N National Energy GREEN HYDROGEN DEVELOPMENT CORPORATION OF TRINIDAD AND TOBAGO Opportunity for T&T to Leverage Infrastructure and Expertise in the petrochemical, power, manufacturing & transport sectors Trinidad and Tobago's Natural Gas Value Chain Green hydrogen can supplement existing grey hydrogen production and also penetrate other sectors Aviation G- * ઊ- Petrochemical Production Power Generation PHOENIX PARK Metal and Heavy Industry UPSTREAM MIDSTREAM Decarbonisation Efforts via Carbon Capture and Storage CNG ÔNG Light Industrial Commercial Sector LNG DOWNSTREAM BLUE HYDROGEN PRODUCED AT SCALE A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Large Scale H2 Hub Electrolyser Heavy-duty Fuel-cell electric vehicles Hub Fuel-cell trains $ Electricity Systems Renewable Electricity Shipping 222#23N ΕΟΙ DEVELOPMENT OF HYDROGEN ROADMAP National Energy CORPORATION OF TRINIDAD AND TOBAGO Inter-American Partnering with IDB Development Bank Assessment of T&T's green hydrogen potential and identification of opportunities to leverage the current natural gas infrastructure to produce both green and blue hydrogen. Completed in March 2021 RFP Process Completed in July 2021 Study in Progress Final Report Q12022 Hydrogen Demand Potential demand of GH2 from different sectors and adaptability to integrate GH2 Enabling Factors Identify synergies with the natural gas and petrochemical infrastructure to support the development of the H2 market. Hydrogen Supply & Competitiveness Assess potential green hydrogen supply and competitiveness. 1.Readiness Evaluation 2.Identify technology options and conduct a cost-benefit analysis for repurposing current infrastructure. THE NATIONAL GAS COMPANY A SUBSIDIARY OF AND TOBAGO LIMITED Next Steps & Pilot Plant Configuration Next actions for the development of GH2 and suggest a pilot project to confirm its feasibility. 1.Implementation Road Map 2.Develop a technology implementation Road Map to leverage the current infrastructure in T&T. 23#24We want to hear from you! Let's Engage! tt Engage A National Effort for Investment Facilitation Register at: https://registration.ttengage.tt/registration Tour our Ports and Estates: https://nationalenergy.tt/Virtual-Tours-360 A SUBSIDIARY OF THE NATIONAL GAS COMPANY OF TRIEDAD AND TOBAGO LIMITED National Energy CORPORATION OF TRINIDAD AND TOBAGO N 24#25f in O. National Energy OUR CONTACTS CORPORATION OF TRINIDAD AND TOBAGO https://nationalenergy.tt/ nationalenergytt National Energy Corporation of Trinidad and Tobago Limited @nationalenergytt THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRIEDAD AND TOBAGO LIMITED 25 N#26National Energy CORPORATION OF TRINIDAD AND TOBAGO N THANK YOU THE NATIONAL GAS COMPANY A SUBSIDIARY OF OF TRINIDAD AND TOBAGO LIMITED 26