TECO 2030 : Annual Report 2021

Annual Report 2021

Contents
In Brief	4
Letter from the CEO	5
Business Areas	7
Hydrogen Fuel Cell	8
Carbon capture and storage	10
Future funnel	11
Ballast water treatment systems	12
Corporate and finance	13
Background: Maritime industry facing stricter regulations	14
Background: Fuel cells are the engines of tomorrow	15
Background: Narvik as the hydrogen capital of Norway	16
TECO 2030 ASA | Annual report 2021

Report from the Board of Directors 18

Financial statements 25

Independent auditor's report 117

Corporate governance 120

Sustainability 126

Members of the Board 127

Management 129

In Brief

TECO 2030: Powering the maritime industry's transition to decarbonization

Actions are needed to reduce the environmental and climate impacts of international shipping. By delivering technology solutions that help ships reduce their emissions, TECO 2030 aims to become a leading contributer to the green transition in the maritime sector.

That is why TECO 2030 is also developing technology that enables ships running on fossil fuels to reduce their emissions, such as carbon capture and storage (CCS) solutions and exhaust gas cleaning systems.

TECO 2030's main focus is to develop hydrogen fuel cells for ships and other heavy-duty applications. Fuel cells are the engines of tomorrow and convert hydrogen into electricity while emitting nothing but water vapour and warm air.

TECO 2030 firmly believes that hydrogen will be part of the solution to combat climate change and that hydrogen fuel cells will be key to reducing greenhouse gas emissions from shipping.

It is, however, likely to take decades before all vessels that run on fossil fuels have been phased out.

28 years of experience in maritime technology

TECO 2030 was founded in the autumn of 2019 and has its roots in the TECO Maritime Group, a group that has provided technology and repair services to the global shipping industry since 1994.

TECO 2030 is headquartered at Lysaker, just outside of Oslo, and was listed on Euronext Growth on Oslo Stock Exchange in October 2020. The company currently has 23 employees.

Letter from the CEO

The importance of the shipping industry grew abundantly clear in 2021 as supply bottlenecks became the talk of the business community. The short-term disruptions will surely be sorted out, but this reminds us that shipping routes are the main arteries of global trade and provide a growing global population with inexpensive and efficient transportation.

However, there is a flip side to the continuous growth of seaborne trade: If the maritime sector were a country, it would be the sixth-largest emitter of greenhouse gases. There is a growing consensus that the current emission levels must be reduced drastically.

Leading organizations such as the International Maritime Organization (IMO) and the European Union have set clear and ambitious targets to reduce maritime emissions. We should have no illusions about this being easy. It will require hard choices and huge investments.

Without drawing the comparison too far, I'm tempted to quote John F. Kennedy when he talked about the ambitious plan to go to the moon - not because it was easy, but because it was hard, because it would focus energies and skills on a great task.

Similarly, reducing emissions of climate gases is no easy task. It's very hard. But during 2021, we have seen tremendous progress on several fronts, solar, wind, batteries and, not least, hydrogen used to store renewable energy.

Hydrogen is key

I am convinced that hydrogen will play a crucial part in decarbonizing the shipping industry. While batteries are suited for storing energy for short-haul routes such as ferries, they are too heavy to be practical for longer-distance shipping.

Therefore TECO 2030 is developing hydrogen fuel cells specifically designed for maritime and heavy-duty applications. Fuel cells have no emissions besides water and warm air.