Kyoto Group AS

Earnings Release • Aug 11, 2023

Successful Initial Operational Test and Comm­­­­­ercial Handover of Heatcube

Successful Initial Operational Test and Comm­­­­­ercial Handover of Heatcube

Oslo, Norway 11 August 2023 - Kyoto Group is pleased to announce the successful

Initial Operational Test (IOT) of Heatcube installed at the Nordjylland Power

Station in Denmark ("Norbis Park") and the subsequent commercial handover of the

Heatcube as defined in the leasing agreement dated Nov 18[th], 2021, from Kyoto

Group AS to Nordjyllandsværket A/S.

The parties have successfully executed the Initial Operations Test (IOT) to

demonstrate the operability of Heatcube and its capability to perform service as

a heat storage system, absorbing power from the electrical grid, storing thermal

energy in molten salt and delivering heat to the district heating system. The

IOT has confirmed the integrated functionality of the flow heater, circulation

of salt, heat-tracing, steam-generator, air system, salt draining system and all

safety functionality, thus confirming that Heatcube is now operational.

"This achievement not only displays the effectiveness of our technology but also

paves the way for a future where industrial process heat is sourced from clean

renewable electricity, enabling the industry to finally decarbonize. The era of

change is here, and we are proud to lead the charge towards a greener more

prosperous future says Kyoto Group CEO Camilla Nilsson. I would like to express

my sincere gratitude to our Chief Project Officer Agnieszka Sledz and her team

for this professional and successful installation and commissioning of Heatcube

and to Nordjyllandsværket for the extraordinary collaboration".

Upon handover according to the "Commercial Handover Protocol" that now has been

signed, Nordjyllandsværket commercially takes over Heatcube meaning that the

lease is activated and the leasing price payable in accordance with the terms of

the leasing agreement.

Within the upcoming two months, the parties will fine-tune the operation of

Heatcube together and Kyoto Group will provide comprehensive training for the

staff at Nordjyllandsværket, enabling them to proficiently operate Heatcube and

conduct the thorough performance test, ensuring its alignment with all design

parameters.

[image]CAPTION: Completion of Norbis Park Heatcube

[image]CAPTION: Connection to the grid of Norbis Park Heatcube

[image]CAPTION: Commissioning of Norbis Park Heatcube

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 Norbis Park

Aalborg Utilities is creating a new district with a green test center at

Nordjyllandsværket called Norbis Park where new, green technologies can be

developed and tested. The proximity to green electricity and heat production and

CO2-containing waste gas offers excellent conditions for utilizing resources

that would otherwise go to waste.