EWPG : Year-end report for the period 1 January - 31 December 2020

Fourth quarter of 2020

Numbers in parentheses refers to outcomes during the corresponding period of the previous year.

• Operating loss increased to SEK 6.2 million (4.6).
• Net loss for the period increased to SEK 6.8 million (-4.5).
• Loss per share of SEK 0.2 (0.1).

 

Significant events in the quarter

Management Reinforcement - The company has appointed Aharon Yehuda as Chief Financial Officer for the Eco Wave Power Group. Mr. Yehuda joins Eco Wave Power with broad experience in corporate and operational finance, most recently as the CFO of Turbochrome, a subsidiary of the publicly traded TAT-Technologies Group (Nasdaq: TATT).

Strategic Collaboration- Eco Wave Power signed a collaboration agreement with Meridian Energy Australia Pty Ltd. (MEA). MEA is a wholly owned subsidiary of Australasia's largest renewable energy generator, Meridian Energy Limited. The purpose of the collaboration is for the parties to jointly investigate the development of commercial wave energy power projects in the Australian National Electricity Market (NEM). Eco Wave Power will recognize MEA as a supporting partner, lead the investigation into the application of wave energy in Australia and identify opportunities for the application of the Eco Wave Power background IP.

Portugal- Eco Wave Power announced a strategic collaboration with Painhas Engineering and Construction Company for the technical support for the licensing of the 20MW Portugal project. Painhas will take an integral part in the technical support needed for the official licensing procedures for the planned wave energy project in Portugal, as part of the newly signed 20MW Concession Agreement with the Port Authority of Leixões - APDL. Once licensing is obtained, the parties will work towards a continued collaboration for the execution of the project.

EWP EDF One Project- Eco Wave Power announced the development of a new preventative-predictive and corrective smart Wave Power Verification (WPV) software. The WPV software aims to speed up efficiency verification of the different sub systems of wave energy generation technologies, as well as detect failures in wave modules instantly. We expect that it will be used in its first trial launch in the EWP-EDF One project, which is financed by the Israeli Energy Ministry and EDF Renewables IL.

New Projects in the Pipeline- Eco Wave Power has entered a 20MW Letter of Intent with the Port of Bilbao,  Spain and a 7.5MW LOI with the Port of Rio Grande, Brazil. In addition, Eco Wave Power has entered an MOU Agreement with MSMART Future Technology. The collaboration between the parties will be executed in milestones. In the first phase, Eco Wave Power will perform an in-depth feasibility study at the selected site in Vietnam, and once the study is completed, the companies have agreed to work towards the establishment of a joint venture company for the development of a 50MW wave energy array.

Patents- Patent numbers 254991, 154992, and 254994 were approved for registration.

Awards and Recognitions- Eco Wave Power has been invited to join 14 other leading entrepreneurs from across the UK and Europe for the first ever virtual iteration of the Unreasonable Impact programme, which aims to accelerate the growth of their companies. Unreasonable Impact is an innovative multi-year, multi-geographic partnership between Barclays and Unreasonable Group to launch the world's first global network focused on scaling up entrepreneurial solutions that will help employ thousands worldwide in the emerging green economy. In addition, Meaningful Business, a global platform for leaders combining profit and purpose, has recognized Eco Wave Power of as a Meaningful Business 100 (MB100) leader for 2020 and Eco Wave Power was shortlisted for the Falling Falls Science Breakthrough of the year in the "Engineering and Technology" category. We were also extremely honored to be featured on RE:TV by the Sustainable Markets Initiative, curated by editor-in-chief, His Royal Highness, Prince Charles of Wales. The initiative showcases inspiring innovations and ideas that point towards a sustainable future.

 

Significant events after the reporting date

EWP EDF One Project Starts Grid Connection Works- Pursuant to the engineering coordination permit secured from the Municipality of Tel-Aviv Jaffa (permit number 2020-4345) for the deployment of the grid connection works for the EWP-EDF One wave energy project, Eco Wave Power officially commenced the grid connection works in the Port of Jaffa, Israel.

Awards and Recognitions- Eco Wave Power continues to receive industry accolades. The company became the Public Vote winner of the Global Innovation Award 2021, in the "Life Below Water" category, which is organized by Globally on behalf of the UAE Ministry of Climate Change and Environment (MOCCAE). The award aims to attract innovations from around the world to the UAE to support the country in its quest to become a world leader in sustainable development.

In addition, Eco Wave Power won the Smart Port Challenge Competition held by Morocco's National Ports Agency and the National Single Window for Foreign Trade- PORTNET, together with the Global Alliance for Trade Facilitation and Morocco's port community. The award granted to Eco Wave Power is 100,000 MAD, as well as an opportunity for Morocco to become an Eco Wave Power testing and implementation hub.

The company also received the People's Choice Award at the BlueInvest Awards 2021, by the European Commission, in the "Energy from the Ocean" category for innovative solutions and technologies in the field of ocean renewables.

 

Full year of 2020

• The operating loss in 2020 amounted to SEK 17 million (18).
• Net loss for for 2020 amounted to SEK 18 (19).
• Loss per share of SEK 0.5 (0.9).
• Net cash used in operating activities decreased to SEK -21 million (13).
• Average number of employees of 17 (15).
• The Board of Directors proposes that no dividend is paid out for fiscal year 2020.

 

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A Word from the CEO

2020 was a challenging year for the whole world, characterized by the ongoing coronavirus pandemic. At both the company and individual level, we have had to change our way of living and working. Eco Wave Power is of course no exception.

Travel restrictions and lockdowns had a negative effect on our ability to conduct business as usual and has caused project execution delays, as most of our projects are B2G (Business to Government). Understandably, most governmental organizations were focused on managing the Coronavirus crisis, which caused delays in certain project permits, and construction works, causing  overall delays in deliveries.

However, at the same time, the pandemic has acted as a catalyzer to decarbonization; the world invested unprecedented amounts in low-carbon assets last year, from renewables to cleaner transport, energy storage to electric heat. A new, broad measure of `energy transition investment', compiled by BloombergNEF (BNEF), shows that the world committed a record $501.3 billion to decarbonization in 2020, beating the previous year by 9% despite the economic disruption caused by the COVID-19 pandemic.

A geographical split of BNEF's energy transition investment data shows that Europe accounted for the biggest slice of global investment, at $166.2 billion (an increase of 67%). Europe's impressive performance was driven by a record year for electric vehicle sales, and the best year in renewable energy investment since 2012. Globally, renewables capacity investment rose 10% in Japan to $19.3 billion, 177% in the U.K. to $16.2 billion, and 221% in the Netherlands to $14.3 billion. Spain was up 16% at $10 billion, Brazil up 23% at $8.7 billion, Vietnam 89% higher at $7.4 billion, France 38% up at $7.3 billion, and Germany 14% up at $7.1 billion. Other markets seeing $3 billion-plus totals included Taiwan, Australia, South Korea, Poland, Chile, Turkey, and Sweden.

Jon Moore, Chief Executive of BNEF, said: "Policy ambition is clearly rising as more countries and businesses commit to net-zero targets, and green stimulus programs are starting to make their presence felt. Some 54% of 2016 emissions are now under some form of net-zero commitment, up from 34% at the start of last year. This should drive increasing investment in the coming years."

We believe that this is where Eco Wave Power comes in, with its cost-effective, reliable, insurable and environmentally friendly solution for wave energy generation, which can become instrumental to the world's decarbonization efforts.  During the last quarter of 2020, we directed a significant part of our resources towards reinforcement of the company's management, progressing our projects, expanding our strategic collaborations and projects pipeline, and increasing the worldwide awareness of the Eco Wave Power technology.

Our significant progress in the last quarter was reinforced by a question I received in the Erik Penser Bank Cleantech Day, which was: "Why should investors pay attention to Eco Wave Power?"

My answer was simple and consisted of three main items:

• Eco Wave Power has significant real-conditions operational experience, with a grid connected wave energy array operational in Gibraltar since mid-2016, and a second grid-connected power station under way.
• Eco Wave Power has strong strategic partnerships with global energy leaders such as EDF Renewables IL (a Subsidiary of the French National Electric Company) and Meridian Energy Australia Pty Ltd. (a wholly owned subsidiary of Australasia's largest renewable energy generator, Meridian Energy Limited).
• Eco Wave Power's wave energy solution is supported by the research community, as evident from the latest report by the International Renewable Energy Agency [(IRENA)], which clearly stated that "Point absorbers is the technology that has been tested and deployed with the most operational projects in the water. This is due in part to their universal nature, as they can be scaled down to very small few-kW, purpose-built projects . . . up to large-scale units of 1 MW."  As a result, the majority of high TRL (technology readiness level) technologies are Point Absorbers, the report says, concluding that "Future projections point towards Point Absorbers being the technology to dominate the market."

The report by IRENA is affirmation to Eco Wave Power's technological direction and it seems that there is consensus being formed within the wave energy sector, according to which Point Absorber wave energy devices are the correct path forward and that technologies of this kind are expected to dominate the wave energy industry in the near future.

In conclusion, Eco Wave Power has a strong combination of research, real operational experience and strategic collaborations which we believe will assist the global expansion of the Eco Wave Power technology!

Kind Regards,

Inna Braverman

CEO

For the full interim report, please click here.

 

About EWPG Holding AB (SE0012569663)

EWPG Holding AB (publ) ("Eco Wave Power") is a leading onshore wave energy technology company that developed a patented, smart and cost-efficient technology for turning ocean and sea waves into green electricity. Eco Wave Power's mission is to assist in the fight against climate change by enabling commercial power production from sea and ocean waves.

EWP is recognized as a "Pioneering Technology" by the Israel's Ministry of Energy and was labelled as an "Efficient Solution" by the Solar Impulse Foundation. Furthermore, EWP's project in Gibraltar has received funding from the European Union Regional Development Fund and from the European Commission's HORIZON2020 framework program. The company was also recently recognized by the United Nations in receiving the "Climate Action Award", which was granted to the company during COP25 in Madrid, Spain.

The Eco Wave Power share (ECOWVE) is traded on Nasdaq First North Growth Market. Read more about Eco Wave Power at: www.ecowavepower.com.

FNCA Sweden AB is Certified Advisor of the Company ([phone], [e-mail]).

This information is information that the Company is required to disclose under the EU Market Abuse Regulation. The information was provided by the contact persons below for publication on 25 February 2021 at 08.00 CET.

 

For more information

Inna Braverman, CEO
[e-mail]
[phone]

Aharon Yehuda, CFO
[e-mail]
[phone]

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