Aker Clean Hydrogen : Annual and Sustainability Report 2021

Annual and Sustainability Report 2021

Chapter Title | Annual Report 2021 2

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About This Report

Aker Clean Hydrogen in Brief

CEO Letter

Board of Directors' Report

Board of Directors

Sustainability Progress Report

Consolidated Financials and Notes

Parent Company Financials and Notes

Corporate Governance Report

Appendix

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About This Report | Annual and Sustainability Report 2021 3

About This Report

In its pursuit of best practice in good governance, Aker Clean Hydrogen strives to provide the most comprehensive and transparent disclosures. We believe that transparency is a foundation for building trust with our stakeholders. In this report, Aker Clean Hydrogen complies with relevant law and regulations, and adopts well-established international reporting frameworks.

This first annual report of Aker Clean Hydrogen is an integrated report, presenting the company's financial, environmental, social and governance (ESG) performance for the period from 1 January to 31 December 2021.

Reporting Entity

In this report the terms Aker Clean Hydrogen, Aker Clean Hydrogen group, and group are used as references to Aker Clean Hydrogen AS and all its direct and indirect subsidiaries.

Financial Reporting

Financial statements and notes are presented both for the consolidated accounts of Aker Clean Hydrogen group, and the parent company Aker Clean Hydrogen AS. Consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and associated interpretations, and

disclosure requirements pursuant to the Norwegian Accounting Act, both as of 31 December 2021. Parent company financials and notes have been prepared in accordance with the Norwegian Accounting Act.

Environment, Social and Governance Reporting

Aker Clean Hydrogen's ESG-reporting consists of a Sustainability Progress Reportand a series of performance metrics, indicators and assessments appended at the very end of this report. The ESG part of the annual report has been prepared with reference to the new Global Reporting Initiative (GRI) standard from 2021. A materiality assessment was performed toward the end of 2021, and both the GRI Content Index and Materiality Assessment on material topics can be found in the Appendixto this report.

Disclosures contained within the report are aligned with the World Economic Forum's (WEF) Stakeholder Capitalism Metrics, the Sustainable Development Goals (SDGs) and the Sustainability Accounting Standards Board (SASB). WEF's metrics are built on the SDGs and serve in this report as an overarching framework. GRI and SASB standards provide a basis for a different approach to materiality and a way to reach all relevant stakeholders. Therefore, the different standards are complementary, and offer the most comprehensive and holistic overview of Aker Clean Hydrogen's ESG practices.

As a reflection of Aker Clean Hydrogen's climate-related risk and opportunities management, the company also reports according to the Task Force on Climate-Related Financial Disclosures (TCFD) framework. A complete climate-related assessment can be found in the appendix TCFD Assessment.

The EU Taxonomy Regulation defines what can be classified as green economic activity, and is a relevant framework for Aker Clean Hydrogen's business activities. While the regulation is not in force in Norway, Aker Clean Hydrogen has adopted the framework and discloses its share of Turnover, Operation Expenditures and Capital Expenditures according to the taxonomy requirements.

While not mandated for Aker Clean Hydrogen, the Sustainable Finance Disclosure Regulation and its Principal Adverse Impact Indicators are applicable to many of Aker Clean Hydrogen's shareholders. Disclosure on these indicators is recognized as good practice, and Aker Clean Hydrogen therefore reports on the core indicators of the regulation. This disclosure can be found in the appendix SFDR Principal Adverse Impact Indicators.

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Aker Clean Hydrogen in Brief | Annual and Sustainability Report 2021 4

Aker Clean Hydrogen in Brief

At Aker Clean Hydrogen we develop, build, own and operate clean hydrogen, ammonia and methanol facilities globally. We industrialize clean hydrogen and thereby aim to solve industrial climate challenges within the hard-to-abate sectors. Our industrial target is to reach 5 GW net installed capacity by the end of this decade. By contributing to the decarbonization of shipping, transport, agriculture and more, we aim to remove close to ten million tons of CO2 every year by 2030.

Integrated		2 GW Net Capacity		Target of 5 GW Net
Clean Hydrogen		Project & Prospect		Installed Clean Hydrogen
Producer		Portfolio		Capacity in 2030
Develop, build,		Projects and prospects		Meaningful impact of
own and operate		in Norway, South		removing 9.4 million tons
hydrogen facilities		America and Africa		CO2 emissions per year

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Maturing Projects Globally

Aker Clean Hydrogen is currently developing projects in Norway, South America and Africa. Our projects range from green ammonia production and decarbonization of the Arctic, replacing fossil fuels in manufacturing industries, to establishing green value chains along the Norwegian coastline, Chile and Uruguay. By year-end 2021 we have established a strong and promising portfolio of clean hydrogen projects and prospects with a total net capacity of 2.0 GW under development, an increase of 1.1 GW from the IPO in March 2021.

Aker Clean Hydrogen in Brief | Annual and Sustainability Report 2021 5

Targeting Hard-to-Abate Sectors

Ammonia, methanol, shipping, refining and steel production all have material CO2 emissions and a clear need to decarbonize. Hydrogen is one of few viable decarbonization routes for these industries, presenting significant opportunities for Aker Clean Hydrogen. These markets are projected to grow substantially and are forecast to reach 200 GW in 2030, and 850 GW in 2050. Aker Clean Hydrogen is taking a structured approach to target these markets.

Ammonia

Methanol

Shipping

	265
65
GW
'30	'50

	175		180
50
		20
GW		GW
'30	'50	'30	'50

Refineries

Steel Plants

	100		150
65
		15
GW		GW
'30	'50	'30	'50

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