Bergen Carbon Solutions AS

Regulatory Filings • Apr 16, 2022

Bergen Carbon Solutions – Sanitizing to temporary impact production for about two weeks

Bergen Carbon Solutions – Sanitizing to temporary impact production for about two weeks

(Bergen, 16 April 2022): Bergen Carbon Solutions AS (BCS, OSE:BCS)

On 8 April the company discovered that a filter in the air ventilation system between a container lab and the production hall had been incorrectly installed at the test-center on Flesland. The installation was made by an external third-party supplier. The wrong installation caused potentially hazardous particles and dust to move into the air in the production hall. The company decided as a pre-cautious measure to temporarily shut down production and collected dust samples that will be analysed by external experts. Six production workers and two mechanics potentially exposed to the dust were sent home the same day.

The company further decided to keep production closed in the two and half working days before the Easter break while conducting inspection of the air ventilation system filter with the supplier and independent experts on the matter. The independent expert concluded in a report that the external supplier was responsible for the issue. The company also had experts on sanitizing of the production hall on inspection and planning the same days. Following the meetings, it was decided that dust and air samples will be collected the first working day after easter and then the production hall will be sanitized. After sanitizing, new samples will be collected and analysed.

The company will notify The Norwegian Labour Inspection Authority (Arbeidstilsynet) about the matter and has also informed its insurance company.

Bergen Carbon Solutions takes the matter seriously and having a safe working environment for all employees is a top priority for the company. The company will take every measure necessary to ensure production employees can return to work as soon as possible. Employees impacted by the temporary production halt will be fully compensated on wages.

The company currently expects to resume production at the end of April or first week of May. In the meantime, the production Diegels will, due to its very low energy consumption, be kept warm so that production can quickly resume once the production hall is sanitized. The office part of the building will be fully operational, but the closed production hall could potentially have some minor time impact on development projects. Except for lost revenues for about two production weeks and costs related to inspection, analyses and sanitizing, the company does not expect any additional financial consequences. Currently the company estimates the financial impact to less than NOK 3 million before any potential insurance recovery and third-party compensation.

Jan Børge Sagmo, CEO commented: “We have a zero tolerance for issues that can impact the health and safety of our employees. This was caused by a human error by an external supplier and was not related to any of our equipment, technology or operating procedures. Independent of the matter, we had planned for a production break during the Easter holiday. Once the sanitizing has been completed, we expect quickly to return to full production.”

ENDS

For additional information, please contact:

Jan B. Sagmo, CEO, janbsagmo@bergencarbonsolutions.com, +47 473 72 701

Dag V. Skansen, Chairman, +47 909 57 585

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.