Investment
Opportunity

hEMS Business Value Proposition

Business model anchored in highly predictable cash flows based on 1 – 2 year contracts with high degree of renewal certainty

Attractive Addressable Market
  • Global oil rig counts are correlated with oil prices and are on an upward trend projected to total ~1,850 rigs across North America by year end
  • Oil and gas companies are committed to reducing greenhouse gas emission and cutting costs, CleanDesign’s hEMS technology is well suited to assist major oil and gas companies in achieving both goals
Favorable Risk-adjusted Return Profile
  • Energy services have low correlation to market cycles and to energy commodities volatility
  • Units are only purchased by CleanDesign once they are contracted and cash flowing, contracts are on a take or pay basis
  • Cash flows are stable and predictable, cash flow disruption is protected for a period of 6 months
Proven Track Record & Stable Financial Position
  • CleanDesign’s hEMS technology has been piloted for over three years with EQT Corporation and now has five units fully deployed and generating cash flow
  • The company seeks to acquire 30 units by the end of 2022
  • CDIC’s unlevered IRR per-project is projected to be in the 20% range, inclusive of captured tax losses
Robust Opportunity Catalysts
  • Partnerships with six of the top ten oil and gas drilling services providers have been or are being established on a one-way exclusivity basis; these partnerships are being leveraged to provide sales and global field services to major oil and gas companies
  • On-grid industry applications are being evaluated and developed
High ESG Value
  • Each hEMS unit eliminates emissions equivalent to the amount generated by 325 cars and reduces fuel costs by up to ~US$375,000+ for each rig, annually
  • There are further potential savings of over US$100,000 per annum per rig upon a carbon tax being fully implemented by 2030

Environmental Impact

CleanDesign hEMS Environmental Impact Analysis

Diesel Reduction (Gal.) CO2 Reduction (Tonnes) Equivalent Cars Removed
Currently Deployed (3 Rigs) 450,000 4,500 975
Dec 31, 2021 Annual Impact – Low (13 Rigs) 1,950,000 19,500 4,225
Dec 31, 2021 Annual Impact – High (24) 3,600,000 36,000 7,800
100 hEMS Enabled Rigs 15,000,000 150,000 32,500
300 hEMS Enabled Rigs 45,000,000 450,000 97,500
600 hEMS Enabled Rigs 90,000,000 900,000 195,000

100 rigs represents only a 16.7% penetration of the North American market at current depressed levels of drilling rigs.

Drilling Rig Market

CleanDesign Income Corp.

Investing in a cleaner tomorrow

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