(Bergen, 28.04.2022) Bergen Carbon Solutions AS (Bergen Carbon Solutions/BCS, OSE:BCS)
Bergen Carbon Solutions today reported an operating loss of NOK 12.5m for Q1 2022 and a net loss of NOK 12.7m.
The results reflect limited production capacity and ongoing investments in development projects.
Cash balance at the end of Q1 was NOK 335.5m and the company does not have any interest-bearing debt.
Operations and development projects
As noted in the annual report for 2021, the progression of the company's development was to some extent negatively impacted by the Omicron spike in the beginning of the first quarter of 2022. Due to the extraordinary health measures and restrictions on a local and global basis imposed by governments around the world, there have been suppliers who have not been able to deliver within the time axis that was expected. This caused some delays in the company’s development plans. The recent announced unplanned event causing the decision to sanitize the production hall have some minor impact on the development projects. The sanitation has now been completed and the company expects production to resume on 9 May. The company has worked systematically to minimize the effects and are pleased that, on average, project timing have only been adjusted by around one month.
Preparations for construction start of the planned factory in Mosjøen have made good progress and the company expects to start construction in July, approximately one month later than the original plan from December 2021 due to the above-mentioned reasons. The company expects production start in 1H 2023 and ramp-up of production capacity to 160 tons CNF annually by the end of 2023. A responsible site manager has been hired and the company has already started the recruitment process of up to 20 production workers. As it looks now, the company is confident that the right organisation will be in place before production start.
The ENOVA supported research project to produce carbon nanofibers from extracting CO2 from the flue gas at Bergen Interkommunale Renverk’s (BIR) waste handling facility in Rådalen has made good progress. The assembly of the modular based container unit is more or less completed, and we are aiming for the container to be ready for commissioning during May.
By the end of June, the company expects to have a total of six production units in operations, of which two at the BIR project and four in the test-center at Flesland. The company is in discussions with Eviny to increase the power supply at Flesland, which, if successful, could allow the company to install additional production units at Flesland and increasing production until the factory in Mosjøen is up and running.
Market development
The market for carbon nanofibers is growing rapidly and new areas and applications for use are constantly discovered. Through its innovative technology, Bergen Carbon Solutions can deliver the most environmentally friendly CNF in the market, and the company’s products will likely expand the market further. The company has gained a lot of attention from both domestic and international clients and Bergen Carbon Solutions is confident that some of the many letters of intent and ongoing projects will be converted into firm purchase contracts during 2022. Some of the major clients the company aim to serve in the future, in particular within the battery and industrial segments, will require reliable supply and large volumes of CNF. The Norwegian Government has also included utilization of CO2 as a key element of the carbon capture, utilization and storage (CCUS) strategy. Several battery factories will be established in Norway in the coming years and huge investments has also been announced within production of key materials for batteries, for example in anode-graphite. Bergen Carbon Solutions is ideally positioned to become an integrated part of this industry. Globally, it becomes more and more clear that the use of CNF is increasingly a part of batteries in the future. Recently one of the largest car manufactures in the United States also announced that carbon nanomaterials will be included in their next generation of batteries for electrical vehicles showcasing the enormous potential.
Bergen Carbon Solutions has a letter of intent with a major Japanese corporation to develop an additive solution for use in anode-graphite for lithium-ion based batteries. On 9 December 2021 Bergen Carbon Solutions announced that based on the initial results, which showed good potential for our green carbon nanofibers, the parties continued to the next step and in the first quarter 2022 performed real life battery cell tests with our carbon nanofibers. The results, which we cannot publish due to confidentiality and commercial reasons, were very positive.
Also in the first quarter, Bergen Carbon Solutions announced a new letter of intent with Japanese company Inabata Europe GmbH. Inabata is intended to introduce EcoNano in their different product ranges such as high-performance and engineered thermo plastics, composites, automotive, electronic appliances and other related products. Additional meetings have been held in April and we have made good progress in negotiations on the commercial terms.
In Q1, Bergen Carbon Solutions also signed an option agreement with Høyanger municipality for the potential establishment of a second production factory. The option has a duration of 12 months and gives the company good time to optimize future production capacity plans.
ENDS
For further information, please contact:
Jan B. Sagmo, CEO, janbsagmo@bergencarbonsolutions.com, +47 473 72 701
Karina Brudeseth, CFO, karbru@bergencarbonsolutions.com, +47 413 43 381
About Bergen Carbon Solutions | www.bergencarbonsolutions.com | Bergen Carbon Solutions uses innovative technology to produce carbon nanofibers, using CO₂ and Norwegian hydropower. This makes the production unique and environmentally friendly. Bergen Carbon Solutions is listed on Euronext Growth under the ticker BCS.