Capsol Technologies ASA – Q1 2024: Accelerating demand growth, expanding offering and reach

Oslo, Norway – April 22, 2024


Capsol Technologies ASA, a provider of carbon capture technology to large
emitters, today announced its results for the first quarter of 2024.

Accelerating revenues and pipeline growth
• Mature stage of sales pipeline totalling 13 million tons of CO2, up 400%
year-over-year, with a record number of engineering studies awarded within
energy-from-waste and cement
• Revenues of NOK 19.5 million, compared to NOK 0.9 million in Q1 2023, driven
by engineering studies and CapsolGo® carbon capture demonstration campaigns
• Current business plan fully funded with committed engineering work and
demonstration campaigns and NOK 97.3 million cash balance

Maturing projects towards technology licensing revenue
• Scalable business model with CapsolEoP® technology licensing agreements
providing EUR 1.5-15 million per project at ~100% gross margin
• Stockholm Exergi, Capsol’s most mature project, received an environmental
permit, de-risking the FID which is expected in 2024
• Preliminary license agreement signed for Switzerland’s first large-scale
carbon capture plant following a successful feasibility study
• Recent license agreements confirm Capsol’s target revenue range of EUR 7-12
per ton installed CO2 capture capacity; FIDs expected in 2026/2027

Expanding geographical footprint, capacity and product offering
• Successfully raised NOK 88 million in private placement directed towards
existing and new shareholders, supporting accelerated growth and value creation
• Currently establishing an operation in North America, the world’s largest
carbon capture market, with the first personnel hired during the quarter
• Expanding the CapsolGo® demonstration program, expect delivery of a third
unit with liquefaction testing capabilities in Q2 2024 with a fourth unit being
considered for the US
• Commercializing CapsolGT®, a first-of-a-kind solution making carbon capture
from gas turbines viable – executing engineering study for a global provider of
gas turbines in Q2 2024

“All licensing agreements thus far are within biomass and energy-from-waste,
where the energy-efficient CapsolEoP® technology has the potential to utilize
waste heat for district heating with a safe process fit for residential areas. A
second wave of demand growth is emerging from the cement industry which is
facing steep cost increases driven by the gradual implementation of the EU’s
Carbon Border Adjustment Mechanism (CBAM) towards 2026. We expect a third wave
of demand from commercialising CapsolGT®. This solution can turn CO2 capture
from gas power plants and other industrial gas turbine applications into a
profit for plant owners,” said Wendy Lam, CEO of Capsol Technologies.

Total operating income in Q1 2024 was NOK 19.5 million (NOK 0.9 million in Q1
2023). Operating loss was NOK -5.7 million (NOK -12.6 million in Q1 2023), with
a pre-tax profit of NOK -7.9 million (NOK -13 million in Q1 2023).

The company held NOK 97.3 million in cash and cash equivalent by the end of Q1
2024 (NOK 38.6 million).

Additionally, and in accordance with previous communications, the Company's
board of directors has resolved to initiate a process to transfer the listing
venue for the Company's shares from Euronext Growth to the main list of the Oslo
Stock Exchange to reflect the Company's market position and to accommodate for
high-quality institutional investors. The Company is aiming to have the
contemplated uplisting of its shares approved by the Oslo Stock Exchange on May
24, 2024.

CEO Wendy Lam and CFO Ingar Bergh will present the Q1 2024 results at 08:15 CEST
on April 23, 2024. The presentation will be broadcast as a webcast and questions
can be submitted throughout the streaming event:
https://channel.royalcast.com/landingpage/hegnarmedia/20240423_1/

The Q1 2024 report and Q1 2024 results presentation are attached and also
available on
https://capsoltechnologies.com/investors.


For further information, please contact:
Ingar Bergh
Chief Financial Officer
Capsol Technologies
+47 926 20 330
ingar.bergh@capsoltechnologies.com


About Capsol Technologies
Capsol Technologies ASA is a carbon capture technology provider with a goal of
accelerating the transition to a net zero future. The company offers a carbon
capture and heat recovery system in one for superior efficiency with a proven
and safe solvent, which is licensed either directly to customers or through
industrial partners globally. Key segments include cement, biomass,
energy-from-waste and gas turbines. Capsol Technologies is listed on Euronext
Growth Oslo (ticker: CAPSL). For more information visit capsoltechnologies.com.

To receive Capsol’s stock exchange and press releases via email, subscribe at
capsoltechnologies.com/investors.

 

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