CRT- Horizon Europe Alignment.

Carbon Recycling Technology (CRT) Horizon Europe Alignment – Carbon Management (TRLs 6–8) Purpose This explainer outlines how Carbon Recycling Technology (CRT) aligns with Horizon Europe carbon management priorities, particularly for TRLs 6–8, first-of-kind (FOAK) deployment, and infrastructure anchored projects. It is intended as a nonconfidential positioning note for evaluators, consortium partners, and funding specialists. Strategic Alignment Horizon Europe increasingly prioritizes system-level carbon management over isolated technology components. CRT is positioned as an integrated carbon management architecture, embedding capture, utilisation, and energy delivery within a single system boundary. This reduces reliance on external transport, storage, or speculative offtake assumptions. System Boundary CRT treats carbon as a circulating carrier rather than a waste stream. CO2 is captured and continuously reused within the operational architecture, strengthening delivery credibility and boundary discipline. TRL Positioning (6–8) CRT is designed for the latest-stage demonstration and FOAK deployment. Its value lies in integration maturity and system readiness rather than early-stage novelty risk. FOAK Risk Reduction FOAK projects most often fail at interfaces. CRT reduces risk by internalizing CO utilization, minimizing interface complexity, and anchoring performance to real infrastructure constraints. Infrastructure & Cluster Compatibility CRT is compatible with industrial clusters, energy hubs, and transitioning carbon-intensive infrastructure, making it well-suited to Horizon Europe cluster-based and infrastructure- ready calls. Evaluator Summary ✔ System credible ✔ Infrastructure aware ✔ FOAK realistic ✔ TRL appropriate Core message: Carbon management succeeds when CO■ is designed into the system — not managed after the fact. Clean Energy and Water Technologies Pty Ltd (CEWT) Carbon Recycling Technology (CRT) – NonConfidential Overview

ESG, Built in- Not Bolted on.

ESG, Built In — Not Bolted On Environmental, Social, and Governance (ESG) principles are often treated as a reporting exercise — something applied after an energy system is designed and built. At Clean Energy and Water Technologies Pty Ltd (CEWT), we take a different view. If ESG is not embedded in the physics and architecture of the system itself, it cannot be sustained by disclosure, offsets, or accounting. Carbon Recycling Technology (CRT) was designed from first principles to integrate environmental integrity, social resilience, and governance credibility directly into the energy system — not layered on later. E — Environmental Integrity by Design Most “net-zero” systems reduce emissions at the point of use while leaving the wider system boundary untouched. This often results in: • front-loaded embodied carbon, • emissions shifted upstream or offshore, • reliance on offsets to close the gap. CRT addresses the environmental dimension at the system level. How CRT embeds Environmental ESG: • Closed carbon loop: Carbon is treated as a recyclable carrier, not unmanaged waste. CO₂ is captured, converted, reused, and re-captured within the same system boundary. • Fossil fuel displacement, not compensation: CRT replaces fossil fuel inputs rather than offsetting their emissions after the fact. • Physical permanence: Emissions reduction is achieved through chemistry and thermodynamics, not contractual claims. • Lower material intensity: By providing dispatchable, firm power without large-scale overbuild of storage or redundant infrastructure, CRT reduces embodied carbon across the system lifecycle. Environmental performance is therefore measurable in tonnes of avoided emissions, not inferred through certificates. S — Social Value Through Energy Continuity Energy transitions fail socially when they compromise: • reliability, • affordability, • industrial livelihoods, • or regional energy security. CRT was designed with continuity as a non-negotiable requirement. How CRT embeds Social ESG: • Firm, dispatchable energy: CRT delivers continuous power and industrial heat without exposing communities to intermittency risk. • Industrial compatibility: Existing skills, infrastructure, and workforce capabilities remain relevant, reducing disruption and job displacement. • Energy affordability: By recycling carbon internally and avoiding fuel price volatility, CRT stabilises long-term energy costs. • Regional resilience: CRT systems can be deployed close to demand centres, reducing dependence on fragile global fuel supply chains. Social value emerges not from promises, but from systems that work under real conditions. G — Governance Through Verifiability, Not Narratives Governance risk in climate solutions often arises from: • opaque carbon accounting, • unverifiable offset claims, • long-dated liabilities, • and misaligned incentives. CRT reduces governance risk by making outcomes physically auditable. How CRT embeds Governance ESG: • System-boundary clarity: Emissions are accounted for within the operating system, not displaced to the surroundings. • Auditability: Carbon flows are measurable in real time — captured, converted, used, and re-captured. • No offset dependency: CRT does not rely on future carbon credit markets to justify present performance. • Regulatory alignment: The technology aligns with emerging integrity-focused frameworks that prioritise real emissions elimination over financial substitution. Good governance follows naturally when claims are anchored in physics, not financial instruments. Why This Matters ESG frameworks are evolving. Investors, regulators, and communities are increasingly distinguishing between: • reported performance, and • real-world system impact. CRT sits firmly in the latter category. By embedding ESG principles directly into the design and operation of the energy system, CRT avoids the fragility, reputational risk, and long-term liabilities associated with offset-driven or disclosure-only approaches. In One Sentence CRT embeds ESG where it belongs — in the architecture of the energy system itself — delivering environmental integrity, social resilience, and governance credibility through physical design, not promises.

The problem definition and the solution.

The Problem We Solve The global energy transition is not failing because of a lack of technology. It is failing because of system-level design errors. Over the last two decades, decarbonisation has been framed as a collection of substitutions: • replace fossil electricity with renewables, • replace fossil fuels with hydrogen, • offset what cannot be eliminated, • optimise efficiency at the point of use. Individually, these steps appear logical. Collectively, they do not add up to a stable, scalable, or physically sound energy system. Where Today’s Transition Breaks Down Most current strategies optimise for accounting metrics, not system behaviour. They prioritise: • net-zero in operation while ignoring embodied carbon, • peak efficiency while neglecting continuity and reliability, • technology add-ons instead of integrated system architecture. As a result: • emissions are shifted rather than eliminated, • carbon is front-loaded instead of reduced, • infrastructure is overbuilt and underutilised, • and energy systems become fragile, expensive, and subsidy-dependent. In practice, many “solutions” reduce emissions on paper while increasing material use, energy losses, and long-term risk. The Core Unresolved Challenge Modern economies still require: • continuous, dispatchable power, • industrial heat and feedstocks, • dense, storable energy for transport and industry, • and systems that work across seasons, not just in ideal conditions. Electrons alone cannot meet all of these needs. Hydrogen alone cannot either. What is missing is system closure — an architecture that aligns energy, carbon, materials, and reliability within the same boundary. Our Definition of the Problem How do we replace fossil fuels without sacrificing reliability, affordability, or physical carbon integrity — at the scale modern societies require? This is not a question of marginal efficiency. It is a question of system design. Our Approach We address the transition as an architecture problem, not a technology race. That means: • designing systems for continuity, not intermittency, • treating carbon as a controllable carrier, not unmanaged waste, • closing loops instead of exporting emissions to the surroundings, • and aligning thermodynamics, economics, and real-world operation. Our focus is not on chasing the next technology headline, but on building energy systems that work in reality, not just in models. What This Enables By solving the system-level failure of today’s transition, we enable: • genuine fossil fuel displacement, • physically verifiable carbon elimination, • scalable pathways for hard-to-abate sectors, • and energy systems that remain affordable and reliable as they decarbonise. In One Sentence We solve the system-level failure of today’s energy transition — enabling the replacement of fossil fuels without compromising reliability, affordability, or physical carbon integrity.

Decarbonising Iron does not mean Iron making must become "Hydrogen-based"

Decarbonising Iron Does Not Mean Ironmaking Must Become “Hydrogen-Based” Steel is an alloy of iron and carbon. The real decarbonisation challenge is therefore not what we call steel, but how iron itself is produced. Today, around 70% of the world’s iron is produced using the blast furnace (BF) and basic oxygen furnace (BOF) route. This is not a marginal pathway—it is the backbone of global steelmaking. The BF–BOF process relies on carbonaceous materials to chemically reduce iron ore, provide high-temperature process heat, and maintain continuous, stable operation. If carbon emissions are to be eliminated, hydrogen can play a role. But that does not mean hydrogen must be used directly and simultaneously as both the fuel and the reductant. That assumption unnecessarily narrows the solution space. The objective is not to eliminate carbon at all costs. The objective is to eliminate emissions at the system boundary. Hydrogen can be used indirectly to decarbonise ironmaking—as an energy vector supplying carbon-free heat and power, or as part of an integrated system that prevents CO₂ release—without forcing hydrogen to replace carbon everywhere it performs an essential metallurgical function. Ironmaking is a continuous industrial process. It cannot depend on intermittent energy, annual averaging, or offset accounting. Without firm, dispatchable, carbon-free power available 24 hours a day, emissions are simply shifted upstream or deferred in time. This is why system architecture matters more than the selection of technology. When energy systems are designed correctly—integrating renewable electricity, storage, and recyclable energy carriers—it becomes possible to retain carbon where it is functionally necessary while eliminating emissions at the industrial boundary. The defining question is not which molecule we choose. The defining question is whether the energy system delivers continuous, carbon-free power and prevents emissions at the point of production. That is the standard true green iron must meet.

WAHT WE ARE BUILDING?

What We Are Building Clean Energy and Water Technologies (CEWT) is developing a next-generation energy platform designed to address one of the hardest challenges in the energy transition: how to supply continuous, carbon-free power to industry, 24 hours a day, every day. Most decarbonisation pathways rely on direct electrification supported by variable renewable energy. While essential, this approach alone cannot meet the needs of industrial systems that require firm, dispatchable energy—such as green iron and steel, chemicals, data centres, mining, and large-scale infrastructure. CEWT’s approach starts at the system boundary, not at individual components. We are building an integrated energy architecture that: • Delivers firm, dispatchable, carbon-free power rather than an intermittent supply • Uses renewable electricity as the primary energy input • Incorporates energy storage and recyclable energy carriers to bridge variability • Eliminates reliance on fossil fuels while maintaining industrial reliability • Is designed for scalability, repeatability, and real-world deployment This is not a technology add-on or offset-based solution. It is a purpose-built energy system engineered to operate continuously while meeting genuine net-zero requirements in practice, not just on an annual accounting basis. The project is currently in development, with system design, partner engagement, and implementation pathways progressing in parallel. Further technical and commercial details will be disclosed at the appropriate stage as the project advances. Our focus is simple: build energy systems that work in the real world, at an industrial scale, without shifting emissions elsewhere.