Stiesdal A/S

Development in activities and financial and economic position




During the year, Stiesdal A/S has granted loans of DKK 171 m to its subsidiaries to finance the individual development projects in the subsidiaries. The Management has very high expectations of the individual subsidiaries, which is backed by budgets, market research and the generally high potential that the Management sees in the technologies. Stiesdal A/S expects to support the subsidiaries, by loans or alternatively by capital increases, with the completion and implementation of their development projects. Stiesdal A/S has issued a loan guarantee for the financial year 2023 for Stiesdal SkyClean A/S and Stiesdal Hydrogen A/S. The Group financial year was primarily focused on technology development activities. However, there is an increase in activities related to customer sales and business development. The technologies, particularly Hydrogen, SkyClean, and Offshore, continue to generate significant interest and relevance in the market, as evidenced by the clear market pull. The Group has estimated a total additional amount of DKK 220 m is required to finalize the development projects in Stiesdal Offshore A/S, Stiesdal Hydrogen A/S, and Stiesdal SkyClean A/S in the financial year 2023. Highlights of the year in the subsidiaries: • Stiesdal Offshore A/S During the financial year of 2022, the Company incurred development costs of DKK 34 m related to Stiesdal Offshore A/S. An additional amount which is expected to be no more than in 2022 is needed to finalize the Tetra commercial floating foundation concept. The Company's future development activities will be financed by prepaid license revenues received from a significant customer. In 2021 Stiesdal Offshore A/S in partnership with Shell, RWE and TEPCO deployed the TetraSpar Demonstrator, a full-scale floating wind demonstration project. The project has been operating successfully throughout 2022. In October 2022, the Stiesdal TetraSub foundation was selected for the Pentland Demonstrator project, which is currently being developed and is expected to be installed in 2025. The Tetra foundation concept offers industrialized floating foundation designs to the exponentially growing offshore wind market, benefiting from the development and test results achieved by the TetraSpar Demonstrator. • Stiesdal SkyClean A/S For Stiesdal SkyClean A/S, the Company inaugurated a fully automatic 200kW SkyClean test plant in 2021. The test plant served to validate the technology design of SkyClean as well as SkyClean’s potential to substantially reduce carbon emissions from the agricultural sector by converting residual biomass to carbon-stable biochar and green fuels. In March 2022 the Company inaugurated a 2 MW SkyClean demonstration plant, located at GreenLab, Skive. The 2 MW plant serves as a testing facility for validation and verification campaigns for the next phase 20 MW commercial scale SkyClean plants. In 2021, the Danish parliament passed an agreement that acknowledges pyrolysis as one of the technologies capable of contributing to a technology-neutral national carbon capture and storage strategy. In 2022 Stiesdal SkyClean A/S, together with a number of partners received a grant of DKK 124 m for the SkyClean Scale-up project. The 20MW SkyClean plant is currently under construction near Vrå and is expected to be operational during 2023. • Stiesdal Hydrogen A/S For Stiesdal Hydrogen A/S, the Company signed the first sales order in 2022 and the first 3MW HydroGen prototype unit was pre-assembled and will be tested during the first part of 2023. Within Stiesdal Hydrogen A/S, the Company had development costs of DKK 46.2 m in the financial year, and a significant amount is expected to be needed in order to complete the first 3 MW prototype commercial scale electrolyzer. The Company has developed a 150 kW HydroGen Electrolyzer demo unit in 2021 and has made satisfactory progress in design and testing of the 3 MW unit. In April 2022, Stiesdal Hydrogen A/S forged a collaboration and licensing agreement with Reliance Industries for the Indian market. The Company has in general been experiencing strong interest in the HydroGen Electrolyzer. • Stiesdal Storage A/S For Stiesdal Storage A/S, the Company incurred development costs during the financial year of DKK 1.7 m, which were allocated towards completing specific ongoing development work that is not directly linked to the Lolland prototype project. Despite the GridScale project being in hibernation, the Company had to incur payments of DKK 19.9 m to fulfill pre-committed obligations related to the project. During 2022, staff from Stiesdal Storage A/S have been lent out to other entities within the Group. At the beginning of 2022 the Company had a substantiable intercompany balance payable of DKK 26 m which has been cleared.