Stiesdal A/S

Beskrivelse af virksomhedens væsentligste aktiviteter

Principal activities
The Group develops and commercializes innovative technologies and solutions that can have a large impact on climate change mitigation. The key activities of the Group relate to design of floating foundations for offshore wind power, development of a low-cost hydrogen electrolyzer, and development of pyrolysis units for carbon removal and production of green fuels. The technology-related activities take place in the subsidiaries of Stiesdal A/S while Stiesdal A/S provides strategic and administrative support as well as necessary infrastructure. Products and services are sold globally.

Beskrivelse af usikkerhed ved indregning eller måling

Recognition and measurement uncertainty
Group: In these present Financial Statements, a tax asset of DKK 62.1 m is recognized. The value of this depends on the future earnings capacity. Based on the Group’s expectations for the future earnings, the Group’s expectations for the future growth in the market for carbon free energy and continued investment in development assets it is Management's opinion that the tax loss will be used in full in the Group in 5-7 years.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Development in activities and financial and economic position
During the year, Stiesdal A/S granted loans of DKK 96 m to its subsidiaries to finance individual development projects. In addition, a tax-free capital grant of DKK 100m has been issued to Stiesdal Hydrogen A/S via the interim account. The Management has high expectations for the individual subsidiaries, which are supported by budgets, market research and the generally high potential and relevance of the solution offered in a future decarbonized energy system. Stiesdal A/S has decreased the value of its ownership of Stiesdal Storage by DKK 33m to match the recovery value of the subsidiary. There is uncertainty surrounding the market for an electricity-to-electricity storage solution, and the extent to which such a solution is needed will depend on system design and the expansion of renewables and PTX. The GridScale technology developed by Stiesdal Storage continues to offer a cost-effective electricity-to-electricity storage solution. Stiesdal A/S expects to provide support to its subsidiaries in the form of either loans or capital injections to assist in the completion and execution of their developmental efforts. Loan guarantees have been issued to Stiesdal SkyClean A/S, Stiesdal Hydrogen A/S, and Stiesdal Offshore A/S for the financial year 2024. The financial year was mainly focused on technology development activities. Customer sales and business development are increasing and will accelerate in the coming year. The technologies, in particular Hydrogen, SkyClean and Offshore, continue to generate significant interest and relevance. The market for these technologies is still in its early days but is expected to grow significantly over the next decade. Highlights of the year in the subsidiaries: • Stiesdal Offshore A/S During the financial year of 2023, the Company incurred development costs of DKK 12 m related to Stiesdal Offshore A/S. An additional amount of DKK 12-24 m will be needed per year in 2024 and 2025 to further refine and complete the Tetra technology for floating wind turbine foundations. The TetraSpar Demonstrator has been operating successfully throughout 2023 with a system availability above 98%. The Company’s Tetra foundation technology continues to benefit from the development and test results achieved by the TetraSpar Demonstrator. Production on the Pentland Demonstrator TetraSub prototype foundation started in H2 2023, with full assembly expected in 2025. In March 2023 the Company’s Triple-One port logistics concept was selected as a phase one winner of the FLOWIN prize initiated by the US Department of Energy. The prize is designed to identify pathways to gigawatt-scale deployment of floating offshore wind farms. The Company has been experiencing strong interest in the Tetra technology, while also noting the possibility that the general downturn in 2023 for traditional bottom fixed offshore wind will delay floating wind projects. • Stiesdal SkyClean A/S During the financial year of 2023, Stiesdal SkyClean A/S brought its 20 MW full-scale SkyClean plant in Vrå in the northern part of Jutland to near completion. The plant is under commissioning and is expected to be operational during 2024. Stiesdal SkyClean A/S, together with several partners, received a grant of DKK 124 m in 2022 for the SkyClean Scale-up project, of which Stiesdal SkyClean has received DKK 49 m to date. The Company’s 2 MW SkyClean demonstration plant at GreenLab Skive, continued during 2023 to serve as a testing facility for validation and verification campaigns for the next phase of 20 MW commercial scale SkyClean plants. The first limited volume sales of CO2 certificates based on biochar were realized in 2023 at favorable prices, validating this revenue stream. A bio-oil condensing unit was added to the Company’s 200 kW plant in Brædstrup in 2023, and bio-oil production test campaigns were conducted. The Company has been experiencing strong interest in the SkyClean technology. • Stiesdal Hydrogen A/S During the financial year of 2023, Stiesdal Hydrogen A/S signed the first sales order and pre-assembled and tested the first 3 MW HydroGen Electrolyzer prototype unit. Within Stiesdal Hydrogen A/S, the Company incurred development costs of DKK 59.7 m to complete the HydroGen concept. A full-scale prototype HydroGen Electrolyzer went operational mid-2023, and the first 0-series unit arrived at the customer site in October 2023, undergoing tests throughout the year. The second 0-series unit arrived at the customer site in January 2024, with full delivery of the two 0-series units expected in the third quarter of 2024, marking the completion of the electrolyzer concept development. The Company has been experiencing strong interest in the 3 MW HydroGen Electrolyzer. • Stiesdal Storage A/S During the year, the companies Andel and Stiesdal decided to terminate the planned construction of an energy storage facility in Rødby. The 2022 balance sheet included a provision for the completion of the GridScale plant in Rødby, and the termination of this project resulted in a partial reversal of approximately DKK 22 m before tax. As a result, the activities in Stiesdal Storage A/S have been put on hold. The primary reason for halting the energy storage project is the current lack of demand for longer-duration electricity-to-electricity energy storage, especially in the European electricity markets. This affects the prospects for industrialization and scaling of the GridScale technology. The Company maintains the assessment that longer-term energy storage has a role in shaping the future energy grid and continues to monitor the need for longer-duration energy storage in international markets. During 2023 staff from Stiesdal Storage have been lent out to other entities within the Stiesdal Group.

Omtale af betydningsfulde hændelser, som er indtruffet efter regnskabsårets afslutning

Significant events after the end of the financial year
A share capital increase of DKK 335,548 at a price of DKK 602 per share has been registered after the end of the financial year. In addition to the above, no events of material importance for the Company's financial position have occurred after the end of the financial year. The company has given letters of support to the following subsidiaries for the financial year 2024: Stiesdal SkyClean A/S, CVR no. 40 63 05 54 (DKK 95 m) Stiesdal Hydrogen A/S, CVR no. 41 82 86 92 (DKK 140 m) Stiesdal Offshore A/S, CVR no. 38 58 51 18 (DKK 40 m) These letters of support are provided to ensure the liquidity required to complete the development projects in the subsidiaries and include a total credit to the subsidiaries of DKK 275 m. No further events have occurred after the end of the financial year of material importance for the Company's financial position.

Beskrivelse af virksomhedens forventede udvikling

Future expectations
The Company's management has high expectations for its development, driven by positive market expectations and customer feedback. The key focus is to mature the technologies and prepare them for market entry. The 20 MW SkyClean Scale-up plant will be inaugurated during 2024 and there is a significant pipeline of potential SkyClean projects awaiting the completion of this technology. The first 3 MW HydroGen Electrolyzer 0-series arrived for testing at customer site during fall 2023 and the first two full deliveries are expected for Q2 2024. Several 0-series are expected to be delivered during 2024 and supply chain is currently being ramped up to be able to deliver higher number HydroGen units in coming years. Stiesdal Offshore A/S has a significant pipeline of ongoing customer activities related to Front End Engineering Design which is the first phase of a floating wind project. Stiesdal Storage A/S experiences a lack of demand for longer-duration energy storage in the European electricity markets, which affects the prospects for industrialization and scaling of the GridScale technology. The Company maintains the assessment that longer-term energy storage has a role in shaping the future energy grid and continues to monitor the need for longer-duration energy storage in international markets. The main focus for the Group in 2024 is to complete development concepts and prepare for top-line growth in the coming years. The Group expects development project costs of DKK 125 m in Stiesdal Offshore A/S, Stiesdal Hydrogen A/S, and Stiesdal SkyClean A/S in the financial year 2024. Target turnover is expected to be in the range of DKK 50-150 m. Operating losses are expected to be in the range of DKK 50-100 m, resulting in a combined cash flow from business operations in the range of DKK 200-250 m. A share capital increase of DKK 202 m has been carried out in the first six months of 2024, which will support the company towards commercialization in 2025.