Quantafuel begins the roll-out of second-generation Plastics-to-Liquid (PtL) plants
Q2 2022 is characterised by significant achievements for Quantafuel. Quantafuel is confidently moving forward into the next phase; large-scale global implementation supported by strong and long-standing partners.
“The past quarter has been an important and eventful one for Quantafuel. We are moving forward into the next phase of our strategy and the commitment shown by key partners illustrates their support and confidence in Quantafuel becoming a frontrunner in the plastic recycling industry,” says CEO of Quantafuel, Lars Rosenløv.
One of the key milestones during the second quarter was the signing of the front-end engineering design (FEED) agreement for developing a Plastics-to-Liquid (PtL) processing plant in Dubai in cooperation with DUBAL Holding and our strategic partner BASF.
Furthermore, the recently announced agreement with Saipem, enables this top-five engineering major to globally market PtL plants under Quantafuel’s technology license. The agreement has added a new dimension to Quantafuel’s business model and provides even more flexibility and speed creating additional income streams over time.
Another important step in Quantafuel’s growth strategy was entering a joint venture with investment fund Eurazeo for our sorting facility in Esbjerg, Denmark. It is a game-changer for the plastic waste market in Denmark, and a prerequisite for the co-located large-scale PtL plant we are planning as a next strategic step in Esbjerg.
Quantafuel reported the completion of line three in the beginning of June, which also enabled the use of self-generated gas for reactor heating. This autumn, all four reactors at Skive will have the necessary equipment installed for heating with self-produced gas. With the current highly volatile and pricey European gas market, this is a significant contribution to our plant economics.
As reported in a press release on 5th July 2022, our Skive operation has been exposed to pressure on operating costs during Q1 and Q2. Key contracts have already been successfully addressed, improving the operational margin. Our efforts to counter cost increases along with the general drive to lower cost in Skive will continue and begin to show positive effects in Q3. At full production Skive will on a yearly basis deliver approximately NOK 70 million free cash flow based on current feedstock and offtake assumptions.
“Skive has been instrumental for where Quantafuel stands today. Our Mk II plants are built on all the key learnings from Skive combined with the long experience of our strategic partners. We are excited about the future,” says Rosenløv.
Please see the attached Q2 2022 report and Q2 2022 presentation for full financial figures, including details on Quantafuel’s operation and projects. Key highlights from the report:
- FEED agreement for PtL plant in Dubai signed with DUBAL Holding and BASF
- Quantafuel adds global licensing business model via Saipem cooperation
- Joint venture and financing for Esbjerg sorting plant signed with Eurazeo
- Three production lines operational in Skive
- Forecast positive cash flow from plants by year-end
Following Proof of Concept for the Skive plant, announced on 28 March 2022, Quantafuel Skive has been subject to a number of technical reviews and commercial invitations for the use of Quantafuel’s technology. The Skive project has total full capex of NOK 620 million. As significant part of Skive’s costs relates to the development cost of Quantafuel’s Intellectual Property, Quantafuel has reclassified NOK 163.6 million related to these developments from Property Plant and Equipment (PPE) to other intangible assets as per 30.06.22.
Day by day we are proving that we are in a good position to build a circular economy for plastics in Europe and beyond. The achievements reached the past quarter position us as a frontrunner and we have strong industrial and financial partners keen to take the next step with us.
In relation to Quantafuel’s strategy of now entering into a roll-out phase, Quantafuel will engage financial advisor(s) to assist in a strategic review to evaluate and execute on the best financing options for the company. With the current and increasing pipeline of projects, Quantafuel will assess financing both on group and project level for the Mk II roll-out, as well as for general corporate purposes.
EU’s Green Deal requiring 50% recycling by 2025 is an important accelerator for plastic recycling. For Quantafuel this means more business opportunities and continued technology development, for which we are building our organisation. Quantafuel is 100% committed to contributing towards solving the global waste problem, and our employees are proud of being part of a company that is acting now.
A webcast including Q&A will be hosted by the Quantafuel management at 09:00 CET today. The presentation will be held in English, and a recorded version of the webcast will be made available on our webpage after the presentation.
Link to webcast: https://channel.royalcast.com/landingpage/hegnarmedia/20220831_5/
For further queries, please contact:
Lars Rosenløv, CEO +47 93018040
Kristian Flaten, CFO +47 95092322
About Quantafuel | https://quantafuel.com
Quantafuel is a technology-based energy company converting waste plastics back into low-carbon synthetic oil products replacing virgin oil products. Quantafuel is establishing, operating and owning dedicated plastic-to-liquid (PtL) plants and plans to establish several plants throughout Europe and beyond.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by André Moe Bakke, IR, on 31 August 2022 at CET 07:00.