Kyoto Group AS

Board/Management Information • Mar 20, 2023

Kyoto Group updates on commercial progress

Kyoto Group updates on commercial progress

Oslo, Norway 20 March 2023 - In response to questions about the change to the

Board of Directors, Kyoto Group would like to update investors on the company's

commercial progress.

"The Hydro representative stepping down from the board does not imply any change

for Kyoto operationally. Hydro has publicly communicated that it is awaiting a

capital partner for Hydro REIN, the business unit involved in industrial

decarbonization, before prioritizing further development. Awaiting a more

energetic market approach from Hydro REIN, Kyoto has chosen to put most

resources into other market avenues and is currently working with more than 40

industrial clients or energy partners regarding Heatcube deployment in Europe,

including leading global renewable energy companies actively offering Heatcube

to their industrial clients," says Camilla Nilsson, CEO of Kyoto Group.

Below is an update on Kyoto Group's commercial progress.

First commercial installation

Progress of Kyoto's first commercial installation of Heatcube, the thermal

energy storage solution, at Nordjyllandsværket (NJV) in Denmark has been smooth

and without obstacles. The majority of cold commissioning and all low-voltage

hot commissioning is finalized. High-voltage commissioning and the formal

handover are awaiting connection to the Nord Energi net, which is an NJV

process, planned for the second quarter and unrelated to Heatcube.

Growing commercial pipeline

Kyoto's commercial pipeline has grown by 25 percent since the Capital Markets

Day in October 2022 and is now 2,600 MWh. The pipeline includes both industrial

companies and multinational energy companies offering Heatcube to their clients,

with a particular emphasis on Europe and our own business unit in Spain, where

molten salt, our basic energy storage technology, is known because it has been

used for decades at concentrated solar power plants.

Heatcube 2.0

Kyoto is in the final stage of tendering all the key equipment for the next ten

second-generation Heatcubes. Strong and strategic suppliers are shortlisted, and

negotiations are ongoing. Kyoto will be ready to hand over a commissioned

Heatcube two to three quarters after the signing of a commercial contract.

Intellectual property

Kyoto is in the process of filing three innovative patent applications related

to key aspects of Heatcube.

Regulatory

The regulatory framework in the EU is changing rapidily. Last week the European

Commission published both the proposed reform of the electricity market design,

with significant incentives for energy storage, as well as the Net Zero Industry

Act to accelerate the clean energy transition and scale up of clean

technologies.

"The premise that industry needs to decarbonize its process heat is hardly

challenged by anyone anymore, and Kyoto provides storage solutions that enable

industrial process heat to be based on wind and solar rather than fossil fuels.

We have a proven technology, an attractive cost position and an increasingly

advanced commercial pipeline. We are more optimistic and have stronger support

than ever from the market, partners and the regulatory environment in both

Europe and the US," says Ms. Nilsson.

For further information, please contact:

Camilla Nilsson, Kyoto Group CEO

camilla@kyotogroup.no (havard.haukdal@kyotogroup.no)

+47 482 95 685

About Kyoto Group

Heat accounts for half 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).