Quantafuel

Business and Financial Review • Oct 26, 2022

Quantafuel ASA | Skive update

Quantafuel ASA | Skive update

Quantafuel is pleased to report positive progress from its Skive plant, both in terms of operating costs, operating capacity, and stability.

All four production lines now have instrumentation installed for heating with self-generated gas* (NCG), which will significantly reduce the operating costs.

Currently, two lines are running at high load on NCG. Over the past weeks, we have successfully implemented and tested planned optimisations, bringing the operating load from 550 kg/h close to the design capacity of 625 kg/h with high process stability. These process improvements will also be implemented on the other lines.

“I am happy to see that our systematic improvement approach continues to create progress in Skive. We are heating with NCG and running with high load and good stability on two lines. At the same time, we are preparing for tests to make further improvements important for our Mk II roll-out. This is all thanks to a dedicated and focused team effort from everyone at Quantafuel,” says Quantafuel’s CEO Lars Rosenløv.

On the third line, we are currently installing a process improvement to increase operating time between line shutdowns, increasing overall production. The plan is to test this in November during normal production.

On line four, an improved control system is being installed to enable an automatic transition between heating the reactors with natural gas (NG) and NCG. This feature will improve operability and production. Line four is expected to run in normal production mode from the second half of November.

“We have invested in optimisations of the production process this autumn to ensure we can reach our ambitions for Skive and future plants. The shift from NG to NCG provides significant cost savings for the company. We have also improved the offtake agreement for our products and our ongoing cost improvement program is moving in the right direction. We therefore maintain that positive cash flow from Skive is expected within this year,” Rosenløv says.

*Self-generated gas, is a bi-product from the pyrolysis process transforming Plastic to Liquid and consists of the hydrocarbon gases that do not condense / become liquid at ambient pressure and temperature, hence referred to as Non-Condensable Gases or NCG. NCG can be recirculated and used as a fuel for heating the pyrolysis reactors, thus significantly reducing the need to purchase and consume Natural Gas. This is important both for reducing the CO2 footprint of the conversion process as well as cost optimisation.

For further queries, please contact:

Lars Rosenløv, CEO +47 93018040

Christian Bekkevold Nilsen, CFO + 47 90277833

About Quantafuel | https://quantafuel.com

Quantafuel is a technology-based energy company converting waste plastics back into low-carbon synthetic oil products replacing virgin oil products. Quantafuel is establishing, operating and owning dedicated plastic-to-liquid (PtL) plants and plans to establish several plants throughout Europe and beyond.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by André Moe Bakke, IR, on 26 October 2022 at CET 08:00.