BCS – Investment decision for first full-scale production factory

04 Jul 2022 08:01 CEST

Company Name





Euronext Growth



(Bergen, 4 July 2022): The Board of Directors in Bergen Carbon Solutions AS
(BCS, OSE:BCS) has decided that company’s first full-scale production factory
will be based in Høyanger municipality, Vestlandet and has approved the start of
construction for a factory with annual production capacity of up to 160tons
EcoNano carbon nanofibers (CNF).

On 22 March 2022 BCS signed an option agreement with the municipality of
Høyanger for the potential establishment of a full-scale production factory. The
experience from the detailed engineering work already conducted for the
potential production factory in Møsjøen, Vefsn municipality, provided the
company with very valuable input for assessing the opportunities and risk
aspects in connection with a potential establishment in Høyanger. Due to the
scalability and transferability of the company’s technology, the same lay-out of
production lines can be used also in Høyanger.

The Board has carefully considered the situation with two good investment
alternatives and is of the opinion that the opportunity to accelerate the
development in Høyanger is the best alternative for the company not only in
terms of risk profile, but also in terms of capital efficiency and flexibility.
In Høyanger, BCS will utilize an existing production hall, which has
significantly lower construction and timing risk as opposed to building a
completely new production hall, and also lowers the project capex by
approximately NOK 90 million. This is equivalent to reduction of approximately
20% on a project basis.
Høyanger offers reliable access to renewable energy through hydropower and the
Board expects to enter a long-term power purchase agreement as part of the
project. The location also offers good synergies with already existing industry
in the area.
Bergen Carbon Solutions expects production to commence mid-2023. The ramp-up to
160 tons will be step-wise and, as previously guided, such ramp-up phase is
estimated to 9-12 months.

The Board estimates total project capex of NOK 325m to reach 160tons annual
capacity, excluding working capital at start-up. The main capex for the project
will be production and separation equipment. The lay-out with independent
production lines also provides the company timing and capital flexibility, if
required. At the end of Q1 2022 the company had NOK 335 million in cash on hand,
zero debt and 93% equity ratio. A significant part of the capex will occur in
2023, hence the Board considers the company to be well capitalized to start the
construction of the first factory. The Board will evaluate all funding
opportunities available going forward, including soft funding, customer
prepayments, debt and equity.

On 29 June 2022 the Norwegian Government announced its battery strategy for
Norway, with the ambition that Norway shall become a major player throughout the
battery value chain in Europe. The Government will also support this strategy
financially and has already granted billions of NOK in loans and guarantees to
different players. Bergen Carbon Solutions have ongoing projects and discussions
with many of the companies mentioned in the government report and the Board
believes that Bergen Carbon Solutions will become an integrated, important
participant in this value chain. The Board therefore believes it is realistic
that the company could get access to such funding and this process has already
been initiated. However, there is no guarantee that this process eventually will
be successful.

Further development in Mosjøen
While the original plan was to build the first full-scale factory in Mosjøen,
the company is still dedicated to continuing the process despite now building
the first factory in Høyanger. The construction sector has witnessed significant
value-chain and lead-time disruptions, which potentially could have impacted the
project in Mosjøen negatively, in particular for the production building. The
Board’s decision will minimize this risk, while the equipment risk is considered
the same for both locations. The company, suppliers and the municipality will
now have better time to prepare the project for future development. Carbon
Development Solutions, which will be a hub for material research used in
combination with CNF, is already established and the first requirements have
been made. This project will continue with full force in Mosjøen, independent of
the location of the first BCS factory.

Finn Blydt-Svendsen, Interim CEO commented: “We are very excited to have made
the investment decision for our first full-scale production factory. We can now
move forward with full speed and deliver on our ambitious plans, and also
demonstrate strong commitment to the customers we aim to serve in the future. We
recently completed the expansion at our test-center at Flesland and reached a
major milestone on the BIR project. We also expanded our product portfolio to
include carbon nanotubes (CNT), which greatly expands our market opportunities.
I am very proud by the dedicated work from the BCS team and how the company
continue to make progress.”

For further information, please contact:
Finn Blydt-Svendsen, Interim CEO, fbs@bergencarbonsolutions.com, +47 930 40 797
Fredrik Øksnes, CCO, fredrik.oksnes@bergencarbonsolutions.com, +47 975 67 318


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


Bergen Carbon Solutions AS


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