(Bergen, 21 December 2021): Bergen Carbon Solutions AS (BCS, OSE:BCS)announced today that the Company has decided to expand the business model by introducing full-scale factory production of environmentally friendly carbon nanofibers (CNF).
On 29 October 2021 the Company announced that it had started pre-engineering and explored the potential scale benefits of a full-scale production factory. Some of the major clients we aim to serve in the future, in particular within the battery and industrial segments, will require reliable supply and large volumes of CNF. While the engineering phase will continue into Q1 2022, the Company has already identified huge benefits of pursuing factory-based production. Compared to our previous business plan, the one presented today has so far identified:
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- A significant increase in production volumes with a capacity of 410 tonnes CNF by 2024, up from 195 tonnes
- At least 25% reduction in capex per ton CNF produced
- At least 20% reduction in opex per ton CNF produced
- Significant improvement in supply reliability
Technical breakthrough
Yesterday the Company announced a major technological breakthrough with the successful production start of the Diegel 2.0 production unit. The unit, which has eight times the annual production capacity of its predecessor, has now been in stable production in the Company’s test-center at Flesland for almost a week and lab tests also confirmed excellent product quality of the CNF produced.
The Diegel 2.0 production units have an annual production capacity of 800 kilograms CNF each and multiple units will now be installed in the Company’s test-center at Flesland, producing CNF from pure CO2. The production units can either be installed in larger facilities or be used in containerized modular units for external production sites.
Unique combination
Our unique technology represents significant cost advantages and environmental benefits compared to the traditional way of producing CNF. While Bergen Carbon Solutions uses CO2 as the only input factor with O2 as the only by-product, the traditional production method uses natural gas as the input factor and emits up to 600 tonnes of CO2 per ton CNF produced. European CO2 quota prices are currently at around EUR 90 per ton, and over time it is likely that traditional production methods will be exposed to such costs in form of higher taxes. In addition, Bergen Carbon Solutions’ technology uses only 150KWh of renewable energy per kg CNF produced, while the traditional method uses up to 10 times more power to produce the same amount of CNF.
Full-scale factory production sites
Bergen Carbon Solutions has a purchase option for a fully regulated ready-to-build commercial plot of five acres in Mosjøen, close to the Alcoa aluminium factory. While the original plan was to install up to five modular units in Mosjøen from 2H 2022 with annual production capacity of around 32 tons CNF, the new plan includes building a full-scale factory with annual production capacity of 160 tons CNF. Subject to completion of work, the company aims for construction start at the end of Q2 2022 with production start in 1H 2023. Ramp-up of the production capacity will occur through 2023 and the Company aims to reach full capacity by year-end 2023. The Mosjøen area offers reliable access to renewable energy through hydropower, lower employment tax rate and will serve as a hub for future material technology research in co-operation with the CNF Arena.
In addition, the company is in advanced discussions of establishing a second factory in Høyanger, Norway, with annual production capacity of 240 tons CNF. If successful, Bergen Carbon Solutions will move into an existing production
facility and will also get access to an attractive long-term power supply agreement. If a final agreement is reached, Bergen Carbon Solutions expect production start of CNF at the end of 2023 or early 2024. Ramp-up of the production capacity will occur through 2024 and the Company aims to reach full capacity by year-end 2024.
The company is also in discussions for establishment on other locations in Norway.
Jan Børge Sagmo, CEO commented:”Some of the large clients we aim to serve in the future will not only require large volumes of CNF, but also high reliability of supply. Our technology is scalable, and we can now accelerate our growth and more than double our production capacity by 2024 compared to our original plan. With lower capex and opex, we think this will strengthen our competitive position further in this fast growing, very attractive market.”
Dag V. Skansen, Chairman commented: ”Bergen Carbon Solutions is gaining a lot of attraction both domestically and internationally. Many local communities want us to establish activities in their region and we are happy that we now have secured our first factory opportunity. The Company is now ready for a large-scale ramp up in production capacity. We will share more details of our plans once engineering is completed in Q1 2022.“
Management will host a presentation and Q&A session at 12:00CET today.Register in advance for the webinar at this
link:
Webinar Registration - Zoom
After registering, you will receive a confirmation email containing information about joining the webinar.
ENDS
For additional information, please contact:
Jan B. Sagmo, CEO, janbsagmo@bergencarbonsolutions.com, +47 473 72 701
Dag V. Skansen, Chairman, dag.skansen@skansenholding.no, +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.
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