Quantafuel begins the roll-out of second-generation Plastics-to-Liquid (PtL)
Q2 2022 is characterised by significant achievements for Quantafuel. Quantafuel
is confidently moving forward into the next phase; large-scale global
implementation supported by strong and long-standing partners.
"The past quarter has been an important and eventful one for Quantafuel. We are
moving forward into the next phase of our strategy and the commitment shown by
key partners illustrates their support and confidence in Quantafuel becoming a
frontrunner in the plastic recycling industry," says CEO of Quantafuel, Lars
One of the key milestones during the second quarter was the signing of the
front-end engineering design (FEED) agreement for developing a
Plastics-to-Liquid (PtL) processing plant in Dubai in cooperation with DUBAL
Holding and our strategic partner BASF.
Furthermore, the recently announced agreement with Saipem, enables this top-five
engineering major to globally market PtL plants under Quantafuel's technology
license. The agreement has added a new dimension to Quantafuel's business model
and provides even more flexibility and speed creating additional income streams
Another important step in Quantafuel's growth strategy was entering a joint
venture with investment fund Eurazeo for our sorting facility in Esbjerg,
Denmark. It is a game-changer for the plastic waste market in Denmark, and a
prerequisite for the co-located large-scale PtL plant we are planning as a next
strategic step in Esbjerg.
Quantafuel reported the completion of line three in the beginning of June, which
also enabled the use of self-generated gas for reactor heating. This autumn, all
four reactors at Skive will have the necessary equipment installed for heating
with self-produced gas. With the current highly volatile and pricey European gas
market, this is a significant contribution to our plant economics.
As reported in a press release on 5th July 2022, our Skive operation has been
exposed to pressure on operating costs during Q1 and Q2. Key contracts have
already been successfully addressed, improving the operational margin. Our
efforts to counter cost increases along with the general drive to lower cost in
Skive will continue and begin to show positive effects in Q3. At full production
Skive will on a yearly basis deliver approximately NOK 70 million free cash flow
based on current feedstock and offtake assumptions.
"Skive has been instrumental for where Quantafuel stands today. Our Mk II plants
are built on all the key learnings from Skive combined with the long experience
of our strategic partners. We are excited about the future," says Rosenløv.
Please see the attached Q2 2022 report and Q2 2022 presentation for full
financial figures, including details on Quantafuel's operation and projects. Key
highlights from the report:
- FEED agreement for PtL plant in Dubai signed with DUBAL Holding and BASF
- Quantafuel adds global licensing business model via Saipem cooperation
- Joint venture and financing for Esbjerg sorting plant signed with Eurazeo
- Three production lines operational in Skive
- Forecast positive cash flow from plants by year-end
Following Proof of Concept for the Skive plant, announced on 28 March 2022,
Quantafuel Skive has been subject to a number of technical reviews and
commercial invitations for the use of Quantafuel's technology. The Skive project
has total full capex of NOK 620 million. As significant part of Skive's costs
relates to the development cost of Quantafuel's Intellectual Property,
Quantafuel has reclassified NOK 163.6 million related to these developments from
Property Plant and Equipment (PPE) to other intangible assets as per 30.06.22.
Day by day we are proving that we are in a good position to build a circular
economy for plastics in Europe and beyond. The achievements reached the past
quarter position us as a frontrunner and we have strong industrial and financial
partners keen to take the next step with us.
In relation to Quantafuel's strategy of now entering into a roll-out phase,
Quantafuel will engage financial advisor(s) to assist in a strategic review to
evaluate and execute on the best financing options for the company. With the
current and increasing pipeline of projects, Quantafuel will assess financing
both on group and project level for the Mk II roll-out, as well as for general
EU's Green Deal requiring 50% recycling by 2025 is an important accelerator for
plastic recycling. For Quantafuel this means more business opportunities and
continued technology development, for which we are building our organisation.
Quantafuel is 100% committed to contributing towards solving the global waste
problem, and our employees are proud of being part of a company that is acting
A webcast including Q&A will be hosted by the Quantafuel management at 09:00 CET
today. The presentation will be held in English, and a recorded version of the
webcast will be made available on our webpage after the presentation.
Link to webcast:
For further queries, please contact:
Lars Rosenløv, CEO +47 93018040
Kristian Flaten, CFO +47 95092322
About Quantafuel | https://quantafuel.com
Quantafuel is a technology-based energy company converting waste plastics back
into low-carbon synthetic oil products replacing virgin oil products. Quantafuel
is establishing, operating and owning dedicated plastic-to-liquid (PtL) plants
and plans to establish several plants throughout Europe and beyond.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by André Moe Bakke, IR, on 31 August 2022 at CET
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