Investor relations news - 30. August 2023

First half and Q2 2023 financial results

Significant steps towards improving efficiency and reducing production costs

Bergen Carbon Solutions AS, the pure-play carbon capture and utilization (CCU) material company, today provides an operational update and financial results for the second quarter of 2023. The quarter was marked by significant steps towards improving efficiency and reducing production costs. Adjusted operating loss in Q2 was NOK 15,1 million, showing a steady burn-rate according to the company’s planned optimalization of its technology. Bergen Carbon Solutions is fully funded to deliver on key priorities with a solid cash balance of NOK 260 million and no interest-bearing debt.

In the second quarter, Bergen Carbon Solutions took significant steps towards improving efficiency and reducing production costs. The implementation of a new process of electrolyte filtration and recycling has yielded positive results. The previously announced proof-of-concept for the electrolyte filtration unit was further validated through a Factory Acceptance Test (FAT) this summer and the unit is now commissioned and in operation. To accelerate the speed of testing and characterisation even further, a new laboratory reactor was also installed earlier this month and is now in operation. Both units will be critical to continue the critical cost reduction road map.

The summer period has had high productional activity and continuous production mode with the sole aim to progress product quality for multi-walled carbon nano tubes (MWCNT). By systematically adjusting critical parameters such as composition of electrolyte, run time, temperature and current density, salt chemistry and other parameters, the particle size distribution has been reduced consistently. This has revitalised interest from potential customers, and next the steps will be shipments of more material samples and initiating further commercial discussions.

“Our commercial focus centers on delivering MWCNT of the highest quality demanded by the market. Positive feedback from several end users worldwide affirms our progress. Our concentration is currently focused on Huchems, where material testing and commercial discussions take center stage. Additionally, we're facilitating discussions with approximately 15 other potential clients and partners across our product groups, including MWCNT, graphite, and hard carbon,” says Odd Strømsnes, CEO of Bergen Carbon Solutions.

Bergen Carbon Solutions have further extended the battery expertise and welcomed several new colleagues during the summer and are actively working with further strengthening of the organisation.

“We recognise the importance of technical competence in our commercial discussions with customers and it’s our belief that technical progress and competence will be crucial for our expected growth. I am therefore pleased to note a positive response in our efforts to strengthen the organisation. Our commitment to further build a sound company culture, maintaining key competencies, and securing new talent remains steadfast,” says Strømsnes.

Bergen Carbon Solutions will be scaling up sales and business development activities, actively engaging the global market and working towards securing partnerships, joint ventures, and off-take contracts as the next strategic milestones. The company’s key priorities remain clear. The main focus is on delivering on Huchems’ MWCNT specification and progressing commercial discussions. With the new lab reactor implementation showing promising progress, the attention now also turns to graphite production, while continuing to deliver results from the cost reduction initiatives.

The presentation and financial report for first half and Q2 are enclosed.

BCS Q2 2023 Financial statement.pdfpdfBCS operational update Q2 2023.pdfpdf