Welcome to the company update of Bergen Carbon Solutions. My name is Jan Børge Sagmo. I'm the CEO and one of the co-founders of the company. The 2021 highlights. Preliminary numbers were published a few weeks ago, and the annual results are in line with those. About Bergen Carbon Solutions. We founded the company back in 2016. We produce carbon nanofibers with CO2 as a feedstock. We have locations in Bergen and also in Mosjøen, Norway. We have a competent team of both engineers and PhDs and production workers. Of course, we have a unique and a green technology. We acquired a commercial production site in Vefsn Municipality this year and will start the factory building by around May.
We are now 34 full-time employees, and almost a year ago in April, we were listed on the Euronext Growth with the ticker BCS. What are we producing? We are producing a product called carbon nanofibers. It's lighter than plastic, it's stronger than steel, and it conducts electricity better than copper. The product has many different applications. I will go through them a little bit later in the presentation. What are we doing? We take CO2 as a feedstock into our electrochemical process with this crucible. We are producing the product carbon nanofibers and also oxygen gas. The oxygen gas is being emitted through a vented duct in the production module. The carbon is filtered in a patented filtration module and of course then the carbon nanofibers is ready for sales.
There are two conventional methods except from our method to produce carbon nanofibers. One is chemical vapor deposition, the other is electrospinning. The difference is that in the chemical vapor deposition, they use 1,400 kWh -2,700 kWh per kg, and they have a CO2 emission up to 600 kg of CO2 per kg of carbon nanofibers. Our technology is climate positive because we are using CO2 as a feedstock into the production. We only use 150 kWh per kilogram, and of course, the only emission we have is oxygen gas. Therefore, we have developed an energy efficient, carbon negative method to produce carbon nanofibers with CO2 as a feedstock. We are using renewable energy and of course oxygen gas as the only by-product.
Our product, EcoNano or ECO-C, is also known as the green carbon nanofibers. Converting CO2 will of course positively contribute to the UN's Sustainable Development Goals, and we can see that our customers reduce their carbon footprint. They can market their product as carbon positive, and of course, they can apply for grants designed for these environmental purposes. A little more about the market update. Carbon nanofibers, it's a black powder that has been evolving since the seventies and eighties. CNF is basically carbon fibers in a nanometer scale consisting of several graphene flakes. This is an emerging material and has unique combination of strength, durability, and of course, conductivity, wide range of application qualities which can be transferred when combined with other materials. It's important to understand that carbon nanofiber is not a standalone product.
We use this as an additive in, for instance, anode graphite, in composites, and so on to strengthen and optimize these type of products. Some of the selected application areas are in energy, in aerospace, in sports equipment, of course in supercapacitors and sensors, in automobile, and of construction. The market is growing fast, and we strongly believe our green CNF will accelerate this growth even faster. We had a NORCE report from January this year showing that when it comes to batteries, plastics, and concrete and cement, our product has such huge potential. If you look at the CO2 emissions when it comes to batteries, it's only 0.1% of the world total, but this is increasing rapidly. If we can have lighter, longer lasting and with higher performance batteries using CNF.
Of course, life cycles GHG emissions is 4% when it comes to the plastics. We can also increase the strength and the stiffness and requiring less material, meaning if we take our product into plastic, you can use less of the plastic. Of course, this can combine with the strength, and then you can reduce the usage of the plastic and production of the plastic, and then you can see reduction of the CO2 emissions. Same goes to concrete and cement. If you take 0.2% carbon nanofibers in the cement, you can reduce the cement by 30% and have the same strength. Of course, and also we see that when using carbon nanofibers, it can be self-sensing, less open to water, stiffer, and more fireproof. Our R&D team is always working towards new applications.
When it comes to batteries, not only in battery capacity, but also when it comes to materials surrounding these batteries. As you can see in the picture in the middle, this is our R&D team that have mixed carbon nanofibers into a PP product that we are 3D printed. Of course, everybody knows when it comes to 3D printing, the market is rapidly expanding all over the world. The NORCE report also have some key takeaways. The material improvement from CNF and CNT leads to reduced production amount. 2 gigatons of CO2 emission can be reduced. These estimates do not account for ripple effects, meaning that reduction is even larger. Rapid technology development, material improvement in the past decade has been shown.
CNF demand expected for the growth in the future and demand for Norwegian-based rubber, plastics and so on, in non-metallic minerals, industrial industries represent a significant part of this market. Potential CO2 emissions can be reduced by up to 250 megatons per year by adding 0.01 CNF into this concrete, and of course, this amount. Scaling the full market penetration of CNF requires fast upscale and production capacity, and of course, industrial scale adoption in new products. Technology for upscaling CNF production capacity and reducing cost are key to also accelerate this market adoption. This is why we went from the modular-based production units to full-scale design positions, where we are making a big factory. Initial calculations indicate 25% lower capital expenditure when it comes to factory setup.
Compared to these containers that we have guided in the past, we expect, of course, to reduce operating expenses, OPEX, by at least 20% from these, from this instead of the containerized solutions. Small improvement, for instance, in batteries can significantly impact global emissions. CO2 emission may increase a factor of 10 within a decade unless production technology improve. This is what we see. If you take carbon nanofiber in the batteries, you can reduce the weight of 40%, and you can also increase the lifetime and wear and tear and the range. If you see a vehicle weight reduction of 5%-10% seem to be within the reach in maintaining vehicle performance. This is more. Take Tesla for an example.
$13,700 is the cost of the batteries. If you have 1.2% of CNF, you can increase the capacity of the battery with 20%. You can reduce the weight with 4%, meaning just in anode materials, you can reduce the cost of the battery approximately $550. Of course, it's important when it comes to weight reduction of 8 kg. Of course, if you have the performance, you can have faster charging, and you have better cyclability when it comes to the batteries. Adding CNF in to the investigated material groups can create a national value and employment. Reliant on Norwegian labor and sub-suppliers, the ripple effects, market end products greener will increase the future demand. Direct providers can use experience to export the products internationally.
This is why we want Norway to be one of the leading countries in the world when it comes to producing these green carbon nanofiber materials and of course, other materials reusing carbon nanofibers. We had a test with the Beyonder when it comes to supercapacitors. We saw that with 7% of our product mechanically mixed with their product, the resistance was 42% lower. We saw the rate performance increase by 3%, and the capacitance increased by 13%. This of course shows a great base for further research and optimal battery consumption, and of course, we are now going through large scale testing. We have several LOIs, as everybody know, but this is the last one.
Inabata Europe, we signed a letter of intent with them, only a couple of days ago. We have been there for several days last week to discuss negotiations, and a big team of the Inabata team went to Bergen in January and visit us, and they show really big interest when it comes to look at the big offtake agreements when it comes to our EcoNano. Of course, they want to sell further this to their customers, both in Europe, also of course, in Japan and the rest of Asia. We had this LOI, letter of intent with this Chinese company, big company in China.
We have now hired an operations manager in Asia, who has the main focus to continue to establish these collaborations, both in China, but also, of course, in the rest of Asia. Now, technical breakthrough. The test center in Flesland, this is where our headquarters are. We will have four production units, Diegel 2.0, in production by the end of Q1 2022. The annual production capacity in this test center will be approximately around 3.2 tons of carbon nanofibers. But we are in discussions to get more power into the plant, so we can have more of these production units. We started this location in 2021, and we have 34 employees, and this is approximately 2,500 sq m. This is kind of cool. Diegel 2.0 is of course now in operation.
It's 8 x higher production than its predecessor, 800 kg of annual CNF production. Of course, five to one. Also, when it comes to CO2, if you have 5 kg CO2, you get 1 kg of CNF, and this shows 150 kWh per kg. As I said, we are going to full-scale factories. Our first factory is in Mosjøen. Mosjøen is centrally located in Helgeland and Nordland County municipality. We have access to extraordinary amounts of renewable Norwegian hydropower. We see that's an important part of the production. Of course, they have access to skilled industrial labor because they are used to working in the process industry. We are also just nearby when it comes to the CNF Arena project.
Our goal is to start construction by the end of Q2 in 2022. Of course, we are working to ramp up the full-scale capacity of 160 tons by the end of 2023. The second location we are looking at is in Høyanger, which is a modern industrial site. This has grown in step with, of course, Hydro Aluminium. They have modern infrastructure where all relevant service functions are, of course, available. This is also important, access to skilled industrial labor, sufficient licensed hydropower and active long-term supply agreement when it comes to this hydropower.
The facilities in Høyanger are already in place, and of course, we are expecting to produce approximately 240 tons in this factory, and we are starting to look at this location by the end of 2023 or early 2024, with full capacity in the end of 2024. The timeline, April 2021, we were listed on Euronext Growth. December, our Diegel 2.0 was proving successful. A new guiding of the full-scale factory production units was also decided in December. Of course, full-scale factory production units in production, four of them in Flesland. By first half year of 2023, we are having the first production in Mosjøen, and of course, we are then going for full-scale commercial export operation from Høyanger plant, sometimes early or late in Q4. This is the presentation. If there
Now there's a Q&A session, if somebody has any questions. There's not. Thank you so much.