Kyoto Group AS

Regulatory Filings • Dec 21, 2023

Klingele, one of Germany´s largest paper & packaging manufacturer signs term sheet with Kyoto Group for Heatcube installation

Klingele, one of Germany´s largest paper & packaging manufacturer signs term sheet with Kyoto Group for Heatcube installation

Oslo, Norway 21 December 2023 - Kyoto Group is pleased to announce that it has

signed a term sheet for delivering a Heatcube to one of Germany's major paper

and packaging manufacturers-Klingele. The designated site for installing a first

Heatcube is at Klingele's facility in Werne, a corrugated board plant in

Germany.

Klingele Paper and Packaging Group, a global manufacturer with 13 corrugated

board plants worldwide, 8 processing plants and 3 paper mills, aims to achieve a

reduction of CO2 emissions by the year 2030. At the plant in Werne a reduction

of 55% of CO2 emissions is planned by 2030. This goal will be accomplished

through the utilization of off-grid wind and solar energy, coupled with the

replacement of the existing gas boilers for steam production. To address the

intermittent nature of renewables, Klingele plans to install Kyoto Group's

molten salt thermal energy storage solution, Heatcube. This innovative system

will capture electricity when available and supply steam as needed. The recently

announced AI-powered back end of Heatcube will also ensure state-of-the-art

preventive and predictive maintenance for Klingele.

The signed term sheet outlines the project pricing and payment terms for the

engineering study that will commence in January 2024 as well as for the Heatcube

purchase agreement which the parties aim to sign within April 2024. The purchase

agreement is conditional upon receiving public grants and the confirmation of

reactivation of an existing windmill.

Tim de Haas, Chief Commercial Officer of Kyoto Group: "Our collaboration with

Klingele Group is robust and productive and we are looking forward to initiating

the engineering and feasibility study immediately. We are committed and

determined to support the decisive first movers in this important industry.

Addressing the sector's significant demand for dependable, top-tier process

heat, Heatcube aligns well with Klingele's steam and energy storage needs,

actively supporting their ambitious targets to curtail CO2 emissions across

their facilities."

With its headquarters in Remshalden, the Klingele Group is one of Germany's

largest manufacturers of corrugated raw paper, and packaging made from

corrugated cardboard. In their recently released Sustainability Report, Klingele

Group defines the combination of innovations, sustainability, and economic

growth as the basis for a successful international business strategy.

"As a pioneer in sustainability, we have been focusing on environmentally

friendly and resource-efficient processes in the production of our corrugated

board paper and packaging for years. At the same time, we are constantly

investing in technologies and innovations to make our energy generation and

energy consumption even more environmentally friendly. We are therefore pleased

about the joint project with Kyoto Group, as a further milestone in our

renewable energy strategy," says Dr Jan Klingele, Managing Partner of the

Klingele Paper & Packaging Group.

Klingele Paper & Packaging Group's Heatcube will replace the current natural gas

supply and is designed with 10 MW charge capacity, 48 MWh of storage capacity

and 7 MW discharge capacity, offering an annual capacity of more than 15 GWh.

The Heatcube at the Klingele Werne site will primarily fuel from independently

generated electricity through off-grid PV and windmill installations, leading to

an annual CO2 reduction of more than 3,400 tons, with the goal of achieving 100%

decarbonization of their heat demand.

The parties aim to sign the commercial contract within April 2024 and to install

Heatcube within around 12 months thereafter.

For further information, please contact:

Håvard Haukdal, Kyoto Group CFO

havard.haukdal@kyotogroup.no

+47 48 10 65 69

About Kyoto Group

Heat accounts for two thirds of industrial energy consumption. Traditionally,

nearly all of it is based on fossil fuels. Kyoto Group's Heatcube, a thermal

energy storage (TES) solution, provides a sustainable and cost-effective

alternative by capturing and storing abundant but variable energy from sources

such as solar and wind. Founded in 2016, Kyoto Group is headquartered in Oslo,

Norway, and has subsidiaries in Spain and Denmark. The Kyoto share is listed on

Euronext Growth (ticker: KYOTO). www.kyotogroup.no

About Klingele Group

The Klingele Paper & Packaging Group combines the know-how of over 100 years as

a family business with the courage to innovate, an awareness of sustainability

and a sense of commitment and responsibility for its employees. Headquartered in

Remshalden near Stuttgart and managed in the third generation by Dr Jan

Klingele, the internationally active supplier of paper, corrugated board

packaging solutions and adhesives has been providing its customers with

competent support in a partnership-based approach and with the highest quality

standards since 1920. The company continuously invests in state-of-the-art

technology and is present in Europe, Africa and Central and South America with

three paper mills, thirteen corrugated board plants, eight processing plants and

one sheet feeder plant (including shareholdings). The broad product range

includes corrugated base paper based on recycled paper and sustainable virgin

fiber, corrugated board formats and innovative and sustainable packaging

solutions for numerous industries and sectors. Klingele is very active in

supplying energy from renewable sources. In 2019, the company received the World

Corrugated Award as the world's most environmentally friendly company in its

industry.

Klingele currently offers its 3,200 employees an attractive working environment

with long-term prospects. In 2022, the Group achieved a turnover of 1.3 billion

euros. As a founding member of Blue Box Partners, the largest European alliance

for corrugated cardboard packaging solutions, Klingele is one of the industry

leaders. Further information on the Klingele Paper & Packaging Group can be

found at: https://www.klingele.com/