The Licensed Project Initiator (LPI)

Under the Novonanmek framework, an LPI is the designated entity that initiates a project under the applicable architecture. An LPI can only initiate a project that is governed by one of the recognized Novonanmek architectures:

• HOPT-AS — Hub-Only Pipeline Topology Architecture Standard for CCUS projects.

• HLAS — Hydrogen Logistics Architecture Standard for Hydrogen projects.

Within that framework, the LPI has considerable freedom to innovate, develop and create commercial value.

What makes the LPI opportunity different?

• Entrepreneurial by design — the LPI is free to develop the project concept, commercial model and stakeholder structure within the applicable architecture.

• Create the opportunity, not necessarily the infrastructure — the LPI identifies a need, brings the right parties together, develops the concept and turns it into a viable infrastructure opportunity.

• Bring stakeholders together — emitters, hydrogen producers/users, technology providers, logistics companies, infrastructure developers, investors, governments and other participants can be brought together around a common opportunity.

• Develop and de-risk the opportunity — the LPI can undertake feasibility, commercial structuring, stakeholder coordination, regulatory coordination and investment preparation as the opportunity matures.

• Raise development capital — the LPI may raise capital during the development phase, allowing early investors and participating stakeholders to share in the value being created.

• Create enterprise value — as the opportunity becomes more mature, credible, de-risked and investable, the value of the LPI company can increase.

• A potential exit through acquisition — once the opportunity is sufficiently developed, a separate Project SPV may be established to acquire the LPI company/opportunity and take the project into the infrastructure-development phase.

• Value is created before construction — the LPI's principal asset is the opportunity it creates: the assembled stakeholders, development work, commercial proposition, agreements, feasibility, investment case and other project value.

• A repeatable business model — the LPI creates an opportunity, develops it, creates value and may ultimately exit through acquisition — allowing the entrepreneurial model to be repeated for new projects.

In simple terms

The LPI is free to innovate within the architecture. Its job is to create an opportunity worth acquiring.

Novonanmek provides the platform and architecture. The LPI creates the opportunity. The SPV develops the infrastructure.

This makes the LPI not simply a project coordinator, but an entrepreneurial vehicle for creating infrastructure opportunities and capturing the value created in doing so.