Kyoto Group Capital Markets Day 2022: On the Gates of Market Breakthrough with Proven Technology

Oslo, Norway October 27, 2022 Kyoto Group today hosts its Capital Markets Day 2022, showcasing the company’s technology, strategy, business initiatives and mid-term goals. Kyoto is also launching the second generation of the company’s Heatcube thermal battery.

“The main message from Kyoto today is that we are now on the doorstep of a market breakthrough with an innovative application of a proven technology,” said Camille NilssonCEO of Kyoto Group.

“We are proud to launch Heatcube 2.0, our modular thermal battery now designed for mass production, to meet the different demand profiles of industrial customers. This allows us to serve the 1 trillion euros industrial heat electrification market. We are also starting to report on our pipeline, which has reached over 1,800 MWh of storage capacity in the past two months alone, fueled by the geopolitical situation,” Ms Nilsson adds.

Tackle a Huge Market with Proven Technology

Kyoto’s technological and commercial advances target the process heat market, which accounts for two-thirds of total industrial energy consumption. As previously announced by Kyoto, Aurora Energy Research identified the usable addressable market for the Kyoto Heatcube as 11,200 TWh of annual process heat demand in the ideal temperature range for the Heatcube. Traditionally, almost all of this is based on fossil fuels.

As intermittent solar and wind become an increasingly important part of the energy mix, the value of the intraday buffer is increasing, and this is the market Kyoto is addressing.

The Heatcube is based on molten salt heat storage. This technology has been used for decades in concentrated solar power plants, which are common in Spainwhere Kyoto has a technology hub and much of the growing business pipeline.

“In other words, this is a well-known technology that is now being applied innovatively and commercialized in new market segments. Our first commercial installation, at Nordjyllandsværket in Denmark, is progressing well and is expected to begin commissioning in January. We have also entered into several promising letters of intent in various industries, such as pulp and paper, food processing and cogeneration, and we have a joint go-to-market strategy with Hydro Rein,” said Ms Nilsson.

Next Generation Heatcube

Capital Markets Day is preceded by a Heatcube 2.0 launch event. This next-generation thermal battery dramatically increases energy density while reducing capital expenditure and operating costs. See the separate press release issued today for more details on Heatcube 2.0.

“Heatcube 2.0 significantly strengthens our growing pipeline offering, and we now have the resources to seize this opportunity, both within the company and in our ecosystem of business and scientific partners,” said Ms Nilsson.

Updating targets

Based on the substantial progress made in recent months, Kyoto is updating its medium-term objectives.

Kyoto has so far aimed for a Levelized Cost of Storage (LCoS) below 20 euros per MWh by 2025. This target should now be reached earlier, and a new target for 2025 of 15 euros per MWh has been established. The Capex ambition for 2025 is maintained at the same level, 40 euros per kWh of installed storage.

In addition, to pave the way to 2025, Kyoto sets its commercial targets for the next two years: 5-10 commercial orders for 2023 and 10-20 commercial orders for 2024. This is based on the fact that Kyoto has established a strong presence on the market in Spain while establishing a solid foothold in the other key target markets.

By 2025, Kyoto expects to have installed more than 2,000 MWh of thermal energy storage and reach EBITDA breakeven.

Today’s physical event is for pre-registered attendees only and will last from [14:00] at [17:00] IT IS. It will also be broadcast live on the Kyoto Group website, and a recording will be available after the event.

For more information contact:

Camille NilssonCEO

[email protected]

+47 48 29 56 85

Havard HaukdalCFO

[email protected]

+47 481 06 569

About Kyoto Group

Heat accounts for half of industrial energy consumption. Traditionally, almost all of it is based on fossil fuels. Kyoto Group Heatcube, a thermal energy storage (TES) solution, offers a sustainable and cost effective alternative by capturing and storing abundant but variable energy from sources such as solar and wind. Founded in 2016, Kyoto Group has its headquarters at Oslo, Norwayand has subsidiaries in Spain and Denmark. The Kyoto share is listed on Euronext Growth (ticker: KYOTO).

More information at–on-the-doorstep-of-market-breakthrough-with-proven-technology,c3655862

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