Kyoto Group AS

Earnings Release • Nov 2, 2023

Kyoto guarantees more than 93% Heatcube round trip efficiency

Kyoto guarantees more than 93% Heatcube round trip efficiency

Oslo, Norway, 2 November 2023 - Kyoto Group is proud to announce that we have

raised the guaranteed round-trip efficiency (RTE) of Heatcube from previously

announced 90% to 93%, when accompanied by a Service Agreement.

Based on numerous simulations, proven through tests at our commercial

demonstration unit at Norbis Park in Denmark and detailed calculations based on

our mature design, Kyoto are thrilled to finally announce the increased round

-trip efficiency of our Heatcube.

With heightened focus on digital capabilities to support the Operations &

Maintenance (O&M) of Heatcube, augmented understanding of the system's

performance through ongoing tests at our commercial demonstration unit at Norbis

Park, and a comprehensive study of the estimated thermal losses and auxiliary

consumption, Kyoto now guarantees an RTE of over 93%.

Kyoto measures the RTE as the total loss of energy during a full charge and

discharge cycle, including all energy and heat losses from all components which

is within the scope of supply of Kyoto. This includes medium voltage

transformers, electrical heaters, tanks, pipes, valves pumps and steam

generator. The RTE performance test will be conducted together with our

customers at the end of the commissioning and is part of our guarantee under the

Service Agreements.

The RTE has a significant impact on profitability for our customers. At an

electricity price of EUR 50/MWh, each 1% in RTE improvement equals savings of

roughly EUR 0.6/MWh of heat. The 3% increase in RTE yields savings of EUR

1.8/MWh of heat, so for a Heatcube that delivers 30 000 MWh per year, there will

be a EUR 54 000 saving per year.

"This achievement displays the effectiveness of our thermal energy storage

technology and paves the way for a future where industrial process heat is

sourced from clean, renewable electricity, enabling the industry to finally

decarbonize while optimizing its operational expenses. We are proud to lead the

change towards a greener future," says Bjarke Buchbjerg, CTO of Kyoto Group.

In addition, Kyoto Group is pleased to confirm that the previously announced

negotiations with KALL Ingredients in Hungary is near closing. All partners

involved in the transaction have received the internal approvals required to

enter into the commercial agreements. The final alignment and corporate

revisions are ongoing, and the signing is expected to happen shortly. The legal

entity that will provide Heat-as-a-Service to KALL Ingredients (Heatcube Tisza

Kft) has been established under the law of Hungary and the joint project team

with KALL Ingredients has been established, to prepare the execution of the

Heatcube installation.

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).