Azelio interim report Q1 2022

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Significant events

Q1: January – March 2022

  • The Board of Directors appointed Executive Vice President Jonas Wallmander as the new CEO, to succeed Jonas Eklind. Jonas Wallmander has worked at Azelio since 2011.
  • A project to certify the TES.POD in the US was initiated in conjunction with MMR Group, in Louisiana. The certification will ensure that the product is compliant with U.S. standards. The storage units will be adapted to the U.S. standards before installation in early fall.
  • Together with Khalifa University and Masdar, Azelio inaugurated the two commercial TES.POD® units that have supplemented the installation in Masdar City, Abu Dhabi. The units will be demonstrated and evaluated by Khalifa University for inclusion in the Masdar product portfolio.

Events after the end of period

  • The latest UN Climate Panel Report discussing the increasing risks of climate change and the war in Ukraine highlights the urgent need to transition from fossil fuels to renewables.  These external factors are expected to drive demand for Azelio’s solutions.
  • New operational targets were adopted which state that at the end of 2022, a handful of projects should have been delivered to make the product bankable, making it possible for customers to insure and finance projects with the technology. For 2023, the company aims to deliver at least 10 projects of 0.5-5 MW. In 2026, Azelio targets to deliver projects comprising at least 1 GWh (ie 1,000 MWh) in total installed electricity storage capacity.

Group financial development

Q1: January – March 2022

  • Net sales amounted to kSEK 323 (97)
  • Operating profit/loss (EBIT) amounted to kSEK -129,584 (-64,733) after depreciation and amortisation of kSEK -40,231 (-4,350)
  • Earnings per share before and after dilution totalled SEK -1.12 (-0.61)
  • Profit/loss for the period amounted to kSEK -130,322 (-65,060)
  • Cash flow for the period amounted to kSEK -154,264 (498,911)
  • Cash and bank balances amounted to kSEK 349,170 (831,458)

Comments from the CEO

Well-positioned for commercialisation

First of all, I am grateful to have been given the trust by the board to take over as CEO of Azelio. Being in the organisation since 2011, I have a deep understanding of what is required to bring our product to the market in a larger scale and I have been directly involved in key customer negotiations to date. As the global transition from fossil fuels to renewable energy continues at a fast pace, there will be a large and growing need to close the 24-hour cycle for renewables. The novel concept of long duration energy storage is set to become a familiar category over the coming years. My aim is for Azelio to spearhead this development.

The latest UN Climate Panel Report discussing the increasing risks of climate change and the war in Ukraine highlights the urgent need to transition from fossil fuels to renewables.  We expect that these external factors will drive demand for Azelio’s solutions.

Bringing focus to our operations

As the new CEO, my focus is to take Azelio into the next phase, getting the product out in the market. We have set new operational targets, which outlines a gradual increase in sales to 1 GWh in installed storage capacity in 2026, beginning this year with making the product bankable, making it possible for customers to insure and finance projects with the technology. To succeed in fulfilling the targets, I have launched four important initiatives which will bring focus to our operations.

Firstly, I have decided to focus sales to a few sizeable markets, selected on the basis that we can offer customers there a particularly strong business case. These markets are the US, Australia, the MENA region (Middle East and North Africa) and Southern Africa. I am appointing heads for each of these markets, in order to come closer to customers and forge stronger relationships, while also securing that the local infrastructure is in place to assist in preparation, installation and after-market services.

I am convinced that a local presence paired with decentralised decision making will speed up commercialisation. Our aim in all these markets, is first to win orders for 0.5-5 MW systems, which can serve as models for other customers.

Secondly, as a next step after DNV’s technical validation completed in December 2021, we are prioritising the generation of validation data from systems operating under real conditions. Customers are demanding data generated under similar conditions as their own, and data are also a perquisite to achieve “bankability”, enabling customers to finance and insure projects. The commercial project with Masdar and Khalifa University in Abu Dhabi is an essential part of this effort. We are also continuing to use the certification company DNV for third-party validation of all our data series.

Every existing and new installation add to our bank of operational data. To generate such data as soon as possible, we have also decided to invest in strategically selected demonstration systems set up on commercial terms together with partners and customers.

We have also started the process to gain a UL certification for the US, a prerequisite to succeed in a broader commercial roll-out in that market. Together with MMR Group, one of our partners in the US, we will adapt the product to meet US standards. We expect to have the necessary certifications in place during 2023. This is our third important initiative.

Cost containment

The focus on commercialisation has also prompted our fourth larger initiative; to pause a range of longer-term projects related to sourcing, manufacturing, and customer installations, while targeting timely delivery of high-quality products. This means that going forward, our production rate will be directly tied to sales orders in order to achieve a more efficient cash flow. Consequently, we no longer have any specific independent targets for production capacity. This will lower our running costs significantly, starting to take effect in the current, second quarter.

In our continued work with sourcing and production, we experience that lead times for gaining access to certain materials are increasing, making shipping and installation harder to plan.

Ensuring financial capacity for the next phase

As communicated in our Year-end report, we have initiated a process to strengthen our financial position in 2022. The capital need is estimated to SEK 300-500 million and we are evaluating different options, including debt and equity. The capital will primarily be used to drive sales in core markets, finance necessary investments to optimize production and by that   increasing profitability.

Execution is key

My short-term mission is to get the TES.POD out on the market – and I share this mission with the entire Azelio team.  We will put all efforts into getting the TES.POD out to customers, to generate data while achieving efficient production. Our aim is to be a key player in establishing long duration energy storage as a vital component of energy systems worldwide. Azelio can make a major difference. Together as a team, we will make sure that happens.

 Jonas Wallmander, CEO


The interim report is attached to this press release and can also be found on the company’s website

For more information, please contact

Jonas Wallmander - CEO,

Fredrik Wäppling - CFO,

Certified adviser: FNCA Sweden AB, tel: +46(0)8-528 00 399, email:


This disclosure contains information that Azelio is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 11-05-2022 08:01 CET.

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