TECO 2030 : H1 Report 2022

Financial Report

H1 2022

Contents

In brief		3
Letter from the CEO		5
Main highlights in H1 2021		7
Business areas		9
Corporate & finance		15
Financial statements		17
Notes to financial statements		22

2	TECO 2030 ASA | Financial Report H1 2022

In brief

TECO 2030 helps

the maritime industry to reduce its emissions

Actions are needed to reduce the environmental and climate impacts of international shipping. By delivering technological solutions that help ships reduce their emissions, TECO 2030 accelerates to the green transition in the maritime sector.

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.

By installing hydrogen fuel cells, ships and other heavy-duty applications can therefore eliminate their greenhouse gas emissions.

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.

Cleantech for the shipping industry

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

By 2050, almost half of all ships are expected to still be dependent on conventional fuels, according to a report published by the American Bureau of Shipping (ABS) in April 2020.

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.

Carbon Capture and Storage (CCS)

TECO 2030 is currently developing CCS solutions for the maritime industry together with the American technology company Chart Industries, Inc. These will capture CO2 in the ship exhaust and store it until the ship reaches port.

When offloaded, the CO2 can either be permanently stored in geological formations underground or be put to beneficial use in CO2-consuming industries.

Better exhaust gas cleaning systems can also help to reduce pollution from ships. The TECO 2030 Future Funnel is a next-generation exhaust gas cleaning system that has been developed to enable ships to comply with upcoming and stricter environmental regulations.

The system reduces the amount of sulphur and nitrogen oxides (SOx and NOx), black carbon and particles (PM) that is emitted with ships' exhaust gases.

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 under the ticker: TECO. The company has as of June 30th, 2022, 33 employees.

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4	TECO 2030 ASA | Financial Report H1 2022

Letter from the CEO

The first six months of 2022 have passed by, and we have achieved several important milestones for our development projects as well as on the commercial side of the fuel cell segment. During the first half of the year, we have seen a macroeconomic change in global trade with regards to the conflict in Ukraine, energy security crisis in the EU and trade disruptions with Covid-19 closures. The conflict in the EU has significantly increased Europe's focus on becoming independent from Russian fossil energy and to increase the progress towards green energy. Green hydrogen is clearly going to be a vital contributor towards the EU's energy independence and towards the decarbonization of heavy- duty and maritime industries.

The fuel cell project development is moving forward with full speed towards start of production for the first pilot unit at AVL's facilities in Q4 2022/Q1 2023. The fuel cell stack has performed thousands of hours in AVL's testbench and is performing better than our expectations from the feasibility study. Several of the components have been through detailed evaluation, simulation, and selection. The decision of components is a large milestone for the engineering team of TECO2030 and is a large step towards a zero-emission fuel cell future. We are continuously working towards achieving higher results and minimizing the risk of our fuel cell stacks. I am confident that the stacks will be leading heavy-duty fuel cells for maritime and heavy-duty industries.

On the commercial side, we have achieved new partnerships with clear targets of achieving results in different hydrogen projects where we will deliver fuel cells. In February, we announced a strategic cooperation with Al-Misehal Group in the Kingdom of Saudi Arabia with a goal of establishing a joint venture for deployment of hydrogen fuel cells in the region. Over 10% of global trade travels through the Red Sea corridor and is the main trade route between Europe and Asia. Local presence in the region will be key to successful implementation of hydrogen fuel cells onboard ships.

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