Green Energy Available for Everyone
KYOTO Capital Markets Day November 25, 2021, 13:00 – 16:00
Video
Agenda
1. Welcome
2. Kyoto on a page
-
The Heatcube
-
Operational update; projects & near-term pipeline
Break
-
Q&A
-
- Aurora Energy Research
-
- Mid- to long-term market opportunities Break
-
- Ramping up to secure growth
The challenge: Decarbonization of industry through electrification
CO2 is cooking the planet Electrification through renewables
The challenge: increasing volatility
Heat accounts for half of global energy consumption
Kyoto on a page
Board of directors with significant industry experience
Management team with solid industry experience
Christopher Kjølner
CEO
Camilla Nilsson
CFO
Bjarke Buchbjerg
Interim CTO
Peter Iversen Interim Procurement Manager
Gustavo Z. Holo
Products & IT
Trude H. Shelby
Interim People & Culture
Kyoto Purpose
Green energy available for everyone
Accelerating the shift to renewable energy through providing reliable thermal energy storage with thermal batteries
The Heatcube stabilizes renewable energy and makes the energy mix greener
The Heatcube
The technology: The Heatcube
Modular applications of the Heatcube
Same product, multiple configurations drive flexibility and reduce cost
Developing next generation Heatcube
Pilot
- Technology verification
- Test site for R&D
Generation 1
- First full scale proof of technology
- First commercial product
Generation 2
- Major technology improvement
- Designed for Manufacturing & Assembly
Heatcube base configuration
The Heatcube can be configured to meet customer's needs, one base configuration is:
Charged by electricity in 5 hours during the night
Deliver 5MW steam for 12 hours during the day
Operational update: projects and near-term pipeline
Pilot Heatcube
Accelerated to become sandbox for next generation Heatcube
Confirmed the design for the first installation (NJV)
Optimal environment for further technology development
Testing on component and sub-system level, currently testing various pumps for the circulation system
Run by experienced staff
Short travel distance to Hønefoss from office in Lysaker
Nordjyllandsværket (NJV): Phasing out coal in Denmark
- Coal fired plant providing 1.4 TWh of heat and power per year
- Committed to phasing out coal by 2028
- Will save 400 000 tonnes of coal equivalent to 1 million tonnes of CO2
- Representing a significant portion of Denmark's CO2 emissions
- Installing Heatcube as part of verification program for new technologies to enable the transition
"Aalborg Forsyning wants to play a central role in the development and testing of new, green solutions.
The Heatcube will be the first installation in our green test center, so this is a key milestone for both us and for Kyoto Group."
Jesper Høstgaard-Jensen, COO Aalborg Forsyning.
First commercial Heatcube contract with Aalborg Forsyning
Delivering Battery-as-a-Service to Nordjyllandsværket power plant
2019: Nordjyllandsværket to establish green test center 2020: Dialogue on design concept and configuration of
Heatcube
2021: Kyoto and engineering partners begin construction Nov 2021: Signing ceremony at Nordjyllandsværket
Near-term prospects
Maturing multiple industrial prospects in Europe
Metal industry: Heat supply and preheating
Metal industry: Pre-heating & waste heat recovery
Energy industry: Electrification of steam generation to phase out gas
Metal industry: Waste heat recovery and electricity generation
Aurora energy research
Mid to long-term market opportunities
Opportunity pipeline: market potential in key markets > 400 TWh, EUR 41 billion
- 8.9 TWh yearly waste heat available
- Strong strategic partnerships established
-
Several projects under evaluation
-
11 TWh yearly industrial heat demand
- First installation under construction
- Strong strategic partnerships established
-
Access to attractive electricity prices
-
98 TWh yearly industrial heat demand
- Significant and increasing price volatility
- Speedy expansion of renewables
- Attractive electricity prices
-
Supportive regulatory framework
-
227 TWh yearly industrial heat demand
-
Supportive regulatory framework
-
100 TWh yearly industrial heat demand
- Strong strategic partnerships established
- Access to world-class TES* expertise
- Significant & increasing price volatility
- Speedy expansion of renewables
- Attractive electricity prices
- Supportive regulatory framework
Already out-competing heat produced from gas in Denmark
Case 1: Annual savings per country in configuration 1: 12 MW charging, 60 MWh storage, 5 MW discharge, charged with electricity from the grid
Charging by decentralized PV is improving the case further
Case 2: Annual Savings per country in Configuration 1: 12 MW charging, 60 MWh storage, 5 MW discharge, charged with decentralized PV
Ramping up to secure growth
From start-up to scale-up Kyoto today 2016 Kyoto is incorporated Focus on concentrated solar power and thermal energy Product validation Successful completion of one pilot installation in Norway Hydro and Valinor join as industrial owners The first order of a full-scale HeatcubeTM module for commercial installation Pipeline of projects; organic and structural growth A billion NOK revenue company by 2025 '19-'20 2021 '22-'25 Focus on thermal energy only Euronext Growth listing and NOK 183.8 million new equity H1 2021 New Board with industry and renewable energy competence New CEO, CFO and interim CTO, from energy sector Trial pilot installation Commercial demo Vemaps.com
Strong position in competitive landscape
Kyoto position
- Proven technology (CSP)
- Modularized, fit for purpose in industrial context (size vs capex/opex)
- Offer the highest temperature among thermal / medium sized offerings
- Around 5 years payback time with optimal configuration (2025 target)
- Already out-competing heat produced from gas in strategic countries
- Strong focus and solid experience in integrating variable renewable sources
Kyoto positioning in the value chain
Strong partners and strategically positioned
Manufacturing
- Kyoto does not own manufacturing capacity, systems are specified as system integrators (solution engineering)
- Proprietary designed products manufactured on Kyoto specifications and sourced by Kyoto to key partners
- Off the shelf manufactured by multiple existing companies purchased at market terms
Project Development and Construction
- First 1-2 years Kyoto targets to develop all projects and manage EPC as a Build-Own-Operate structure
- Long term project development and EPC may be executed through partners & JVs close to individual markets
- Construction activities will be outsourced locally
Customers
- Short term all sales as a service (BaaS)
- Long term Kyoto also intends to sell through development partners and EPCs
- Kyoto will always own systems engineering as well as operational responsibility of the storage system (The EMS)
Scaling up to meet increasing demand
New offices at Lysaker Doubling the organization (to 25 FTEs) before year-end 2021
Moving into commercial phase
Clear strategy for long-term development of Kyoto
Full focus on delivering the first Heatcube to NJV in Denmark with expected operations early next year
Progressing leads in key markets in Denmark, Spain, UK, Germany and Norway
Scaling organization organically and structurally to execute on growth strategy
Developing next generation Heatcube Designed for Manufacturing and Assembly
Strengthening network of strategic alliances into key markets
Targeting electrification of industrial heat at 200C to 500C temperatures
Key opportunities in the market for heat and energy
- Electrification of Industrial heat demand in chemical & petrochemical and construction industries
- Waste heat recovery in aluminum, iron and steel industry
- Pre-heating industrial processes in iron and steel industry
- Generation of electricity from waste heat recovery
- Utilizing market fluctuations by providing stabilizing activities
Key developments towards 2025 targets
|
2021 |
2022 |
|
2023 -
2024 |
2025 |
|
|
Pilot test
•
finalized and
converted to |
First commercial
•
installation |
• |
Strong foothold in all strategic
markets
established |
• |
Several
hundred
batteries installed |
|
R&D center |
Signing of
•
several |
• |
Accelerating industrialization of the
Heatcube |
• |
>GW and
several
GWh |
|
First commercial
•
order signed |
commercial
orders, with
large
industrial |
• |
Developed
next
generation
Heatcube
Designed
for Manufacturing and Assembly |
|
available |
|
IPO
• |
companies |
• |
Continued growth and expansion of |
• |
Solid profitability |
|
Doubling of
•
organization |
Doubling
of
•
organization |
|
the
organization |
• |
LCoSC
< 20
EUR/MWh |
|
2022 pipeline
•
maturing |
Explore
M&A
•
opportunities |
• |
Increasing focus on profitability,
approaching break even |
• |
CapEx
< 40 |
|
|
and financing |
|
|
|
EUR/kWh |
|
|
|
|
|
• |
A billion NOK
revenue company |
LCoSC
= Levelized cost of Storage Capacity |
|
|
|
|
|
|
We disconnect the time power is made, from when it is used
Appendix