Quarterly

Report

Q3 2022

11.11.2022

CEO LETTER

On a mission towards zero-emission

The company has evolved on all aspects and is moving closer to start of production. In December we will be able to physically touch our first fuel cell stack, something that I am looking very much forward to. Then we can move towards a new phase of validating our fuel cell in a handful pilot projects through 2023, before moving into automated production in Q1 2024. The energy crisis and security situation hasn't changed significantly over this quarter, and we need to secure that the entire hydrogen value chain moves towards realizing projects and building infrastructure. This is also an important factor in moving towards a net-zero carbon future. TECO 2030 is proud to be a key player in realizing fuel cell projects in the Nordic and EU regions.

During the third quarter, we ignited several of new partnerships and projects, as well as achieving exciting progress in the projects we already were involved in. The strategic progress was made on our fuel cell production line project, where we signed an MoU with thyssenkrupp for an automated production line at our factory in Narvik, Norway. This moves us one step closer to installing and commissioning Europe's first gigafactory for heavy-duty and maritime fuel cells.

Tore Enger

TECO 2030 Quarterly Report Q3 2022

Another milestone was reached in our strategic partnership with AVL, TECO 2030 will deliver fuel cell stacks to AVL's HyTruck Fuel Cell system. The first DemoTruck will be on the road with TECO 2030 stacks mid-2023. This marks the beginning of our second revenue stream with the Fuel Cell stacks, that can easily be modified to other fuel cell systems. A large step towards decarbonizing heavy-duty industries enabling green mobility at large scale. The DemoTruck aims to enable the future of trucking, with an easy plug and play retrofit zero emission hydrogen fuel cell solution.

Four local municipalities in Norway launched this past summer a tender for a zero-emissionhigh-speed ferry concept and three consortiums were granted NOK 5 million each to develop the concept vessel. In this regards, TECO 2030 launched the concept HySpeed Commuter, a fuel cell powered high-speed ferry as a part of the concept tender. The winner of the concept phase will be granted the project to build the vessel.

Through the quarter we attended several events, exhibitions and conferences which gave us a broad exposure to several industries and political arenas. The attention to zero emission fuel alternatives is increasing for every event we attend, and the focus to collaborate on realizing projects is enormous. The results from events and conferences are important to generate organic growth through visibility and an open-minded approach to share our expert knowledge of fuel cells.

As the industry is seeking new technologies to reduce harmful pollutants, zero emission fuel cells is what we are continuing to pursue our focus on. Fuel Cells in combination with green hydrogen is the way forward for shipowners, heavy duty machinery operators and others who are under pressure to reduce harmful gases.

I am confident that the future will be hectic for us, and our industry when trying to deliver, realize and build a complete value chain for the next sustainable energy source.

Lysaker, Norway, November 11th 2022

Tore Enger

Chief Executive Officer of TECO 2030 ASA

WORLDWIDE HYDROGEN INITIATIVES & FUNDING PROGRAMS

European Commission

  • REPowerEU plan
    • Independence from Russian fossil fuel imports
    • Support investments/reforms worth € 300 billion
    • € 3 billion of frontloaded projects under the Innovation Fund
    • Hydrogen accelerator for 17.5 Gigawatt electrolysers by 2025 production of 10 million metric tons renewable hydrogen within EU
  • Fit-for-55
    • Reduction of greenhouse gas emission by 55% till 2030
    • Make EU climate neutral by 2050

Biden-Harris Administration

  • U.S. Department of Energy funding program
    Total of $ 9.5 billion funding by DOE
    • $ 8 billion for clean hydrogen hubs
    • $ 1 billion for electrolysis R&D
    • $ 0.5 billion for manufacturing and recycling R&D
  • Inflation Reduction Act
    • $ 3 tax credit per kg hydrogen produced with renewable energy
  • "1 1 1" $1 for 1 kg clean hydrogen in 1 decade

Japan's energy strategy

  • Hydrogen key role
  • Green Innovation Fund JPY 2 trillion (~ $ 13.5 billion)
    • By New Energy and Industrial Technology Development Organization (NEDO)
  • Hydrogen consumption forecast
    • 2030 3 million metric tons
    • 2050 20 million metric tons
  • Fuel cell vehicle (FCVs) forecast
    • 2025 200,000 FCVs
    • 2030 800,000 FCVs

TECO 2030 Quarterly Report Q3 2022

FCM400

Fuel Cell development

The Fuel Cell development project has progressed according to schedule during the third quarter. There is currently approximately 20 dedicated TECO 2030 employees working alongside the AVL team focusing wholeheartedly on furthering the development of the Fuel Cells. During the quarter, all parties involved met to finalize the alignment of the Type Approval program which is estimated to be completed mid-2023.

Looking ahead, TECO 2030 will produce its first Fuel Cell in collaboration with AVL during December 2022. This marks an important milestone where our focus will start to shift more and more towards stack and FCM400 assembly and testing. The team has overcome the major design challenges and are now deep in detail to close the design loop.

Fuel Cell Module - FCM400

FC Stack 100kW

TECO 2030 Quarterly Report Q3 2022

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Teco 2030 ASA published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 06:01:02 UTC.