Hello, everybody, and welcome to Buying Carbon Solutions Half Year Report. Buying Carbon Solutions BCS was listed on Euronext Growth April 19, 2021. And prior to the listing, our share issues was carried out, which secured the company of NOK 80,000,000 in new capital. I will talk about the Q2 highlights, Buying Carbon Solutions in brief, Our technology update, the strategy, key developments, outlook, summary and there will be a Q and A session after the presentation. So the highlights.
During the last quarter, the company has continued to work with upscaling and development of the modular CNF production unit. The project followed the plan towards installation of the first unit in the Q1 of 2022. The unit will be located at Bir waste plant in the drawdown in Bergen. Another milestone was that BCS moved into new facilities during June at Flesland in Bergen. Thus all activity is now co located.
This is considered very important for the further development of the company and especially for collaboration across the organization. Over the past 6 months, we have significantly Strengthened organization and employed several key resources that will be important for the further development. This applies both on the technical side, including the role as a CTO as well as sales, administrative support functions, and we are very pleased to attract Strong expertise in all areas. Other important highlights during the last 6 months are the conclusion of several LOIs related to collaborations with customers and future deliveries of CNF. BCS entered a LOI with 2 Japanese companies, 1 company from China and in Norway with Yara and of course, Jakob.
Finally, it's important to mention the really positive development in motion related to establishment of CNF Arena. BCS has a great faith in this initiative and will take an active role and look forward to the future positive development and in motion and establishing a factory in motion in future. Development activities related to our production facility At Flesland and the model that will be placed at bid is the most important activities the next 6 months. We are currently hiring and training personnel for 24 hours a day, 7 days a week production at our Flesland plant, and we are expecting to run production 20 fourseven by the end of autumn. We are expecting the first four crucibles of our modular design to be installed in our plant at Flesland By the end of Q1 2022, as we have planned, the company has a strong cash position, no debt And position is there for good continuing development activities related to both technology and market and organization.
The company's continuous dialogue with potential customers, academic and of course, industrial entities and will announce new key Collaborations, LOIs and partnership if when they may occur. And of course, in the COVID-nineteen pandemic, This may impact some of the timelines and operations. So The net result for the first half of twenty twenty one was net loss of NOK 11,820,000 compared to the loss of NOK 1,670,000 in the first half of twenty twenty. The increased loss in 2021 is mainly the result of planned increase In headcount, the move to new premises and of course, the process of listening to Euronext Growth. This resulted in a higher cost compared to the year 2020.
The company had no any had any significant revenue during the period, but has budgeted for some revenue and at the end of Q4 based on the development of the new crucible to be completed. The total Operation expenses amounted to be SEK 11,950,000 in the first half year of twenty ten compared to SEK 1,650,000 in the same period last year. So now I'll talk about Buying Carbon Solutions. We are a company that produces carbon nanofibers from CO2. It's a product that's 100 times stronger than steel.
It's lighter than plastic and conducts electricity better than copper. We are a pioneer within CO2 value creation. We have CO2 into our modular production units. We produce the carbon nanofibers with range of different application areas, Like in aerospace and defense, automatics, electronics, constructions, building and of course, textiles. Buying Carbon Solutions was founded in 2016.
We are located in Bergen. We have competent team of engineers and PhDs. We have a unique and patented technology. And of course, we have several commercial production sites secured, As you know, with BER and of course, Motion, we were listed on Euronext Growth and the ticker is BCS. So our technology used significantly less energy and conventional methods.
There are 2 mainly other methods of producing carbon nanofibers. 1 is electrospinning and the other is chemical vapor deposition. The average Kilowatt per hour per kilo with chemical vapor deposition as a CVD is 1400 kilowatt hours. We have a positive CO2 impact because we use CO2 as the input into production. We have an average from 50 to 150 kilowatt hour per kilo of carbon nanofiber depending on the size of and how much production we are going to produce.
So 0 emission product enabling a low carbon footprint. This is something that's really important in you and the rest of the world today. We have developed an energy efficient carbon negative method to produce carbon nanofibers out of CO2 using renewable energy With O2 as the only byproduct, we have also called our product EcoXi and the product line is eco nano, better known as green carbon nanofibers. So we have one material. We have 2 products.
We are mainly focusing on the carbon nanofibers instead of carbon nanotubes, even though we produce some of both. But the thing is the carbon nanotubes has a little, little better when it comes to electrical conductivity. It's a little bit less when it comes to the weight. But as you can see, the price is substantial. So it's a cost benefit thing.
The customers really want to buy the carbon nanofibers because, of course, the uniqueness of the product, but also when it comes to the price. So what is carbon nanofiber? It's a product that's been known and commercialized in 2,008. It has a good revenue stream, dollars 500,000,000 2021. And PVC made a report, we will see on a later slide, that shows that there is quite substantial potential when it comes to Revenue in carbon nanofibers.
The market price of carbon nanofibers is ranging between NOK 5,000 and to NOK 27,000 depending on the quality. We have differentiated our product to Eco C1, Eco C2 and Eco C3. We are currently selling our Eco C3 for NOK 8,000 per kilogram. So this is the total market in 2020 B2B at NOK 70,000,000,000 NOK 1,000,000,000 and USD 8,000,000,000. We made a report together and PVC made a report showing that The expected revenue of Carbon Nanofibers will be quite substantial.
So this is something we have 400 plus potential customer and off-tech agreements actively discussed with several companies. I would like to highlight Gaitline, the Norwegian shoe company. We are mainly focusing on making the most green and best running shoe in the world. I would also like to highlight TU Tech, who we are working with when it comes to the electrical car battery industry And of course, Jacon, our latest LOI, who make installation materials, and we want to see if we can have carbon nanofibers in their materials. But we are looking at a range of different type of companies when it comes to polypropylene, when it comes to different type of composites, cement and so on and so on.
So an attractive profitable growth opportunity. We have 1 production module, 30 tons of CO2. It costs the CapEx of NOK 17,000,000, 6.5 tons of CNF comes out. If you take NOK 5,000 per kilogram, this is a NOK 30,000,000 revenue per year. And of course, it's modular based.
So when you have full capacity in 1 module, You just make another one, another one and another one. So This is our industrial scale out. We have our test factory in Bergen, as you can see in the picture, where we are now Currently planning to produce 20 fourseven by the end of autumn. In Q1, Q2, we are planning to put our modular production unit at Bir Rodal. We are also in discussion with test center Mengsta, who is one of the pioneers when it comes to CO2 value creation and is and it's an open window to the rest of the world.
And of course, we just did the option agreement to buy a plot in Motion to build our factory next to Alcoa in Motion. And the plan is to start hiring a site manager in motion by the end of this year. And hopefully, the regulation plans and everything will be finished by next year in August, so we can start building the building. So we were Listed on Euronext Growth, 19th April 2021. We have raised NOK 120,000,000 in capital, so on, And the cornerstone investors in the list in the IPO was, of course, Saga Pure, Nordea and Avelko.
And we are really happy to have such Strong and good investors among us. Number of shareholders now is 33,000 and of course, is growing. And in market cap in 24 August was NOK 1,300,000,000. So we are also talking to Port of Antwerp and within LOI with them in April. And we are, of course, discussion to have model or production unit at their facility It's something that's for certain, they have a lot of CO2 and they want to do something about it.
And we are working together with them to go and look at the location when, of course, the COVID-nineteen situation opened for us to travel. So we have also entered a LOI with a Japanese company. I got a mail today that they are finalizing the test. They have put Our product together with their product and of course, they are now doing tensile strength and different type of strength test, and that will be finished by the end of September. And then we are positive we'd get good results from the test with the polypropylene that they are testing.
We also have This company who is looking for expanding and want us to expand and develop BCS in Japan. This is more like a trading house, And they want to see if they can help us expanding to Asia. The goal also is To start by next year to have a sales representative office in Japan and of course also in Germany because we feel this is 2 important markets for us when it comes to the carbon nanofibers. Germany is big in the automobile industry. And of course, Japan is a very exciting company a country that has a range potential when it comes to the rest of Asian market.
The Chinese company Also want to look at collaborations when it comes to using and, of course, utilizing CO2 in China. As you may know, the Chinese are a fast growing country. And of course, if we want to establish a good establishment in China, it's important to have a Good partnership with a Chinese company that can help us grow and build in China. We had a first meeting with Yara yesterday after signing the LOI, where we are settling 2 different type of project mandates to look at the CCU part and, of course, establishment production facilities at Heideia and together with Yara, where we are utilizing their CO2 to producing carbon nanofibers. And of course, it's a Political thing, but also, of course, they want to utilize the CO2 and they see us as a good contributor to making CO2 negative net plus in the future.
We also introduced an LOI with JAKON. This is an exciting LOI for us. I need to be honest, I didn't know so much about JAKCOM before, but as more I learn and more I see and more I talk to the people, I feel that this is a potential company that will have great and substantial potential when it comes to BCS and selling of carbon nanofibers. They are making isolation materials. And of course, they're using carbon today, but they want to use CNF to strengthen their isolation material and of course, CO2 emission is a big and important part of this journey with Jakob.
So what are our priorities for 2021? We are finalizing a crucible tunnel called David project. We are using 20 fourseven production at our test factory in Bergen. We are finishing the contract for purchasing the plot in motion, Several contracts for selling product to the customers and, of course, entering into firm contracts with in the Commsdr LOI and, of course, further establish key partnerships to in the future. So you can't say anything good too many times.
Summary, we are using and enabling sustainable value creation from CO2 utilization through a modular production unit with Proven and superior cost efficient technology. We are producing carbon nanofibers from CO2 with a range of Application areas like in aerospace and defense, electronics, automotive, construction, energy and of course, in textiles. And now there's a Q and A session.
Thijs Batns from AWI Lumsden. Compared to the business model that you laid out in Connection with the listing, where would you say that the company is today relative to that business model?
No. So the mid business model is the same. We are doing scaling and producing the model of production plants. And of course, the reason why we want to build a building in motion It's mainly because we have also established the CNF Arena, where we are working with our collaboration with Moon to establish our Carbon Lab, where we have PhD, master thesis and Antonu and other companies can come and test and use a laboratory to test our products.
Do you see that site in motion like more factory? Or will you still have modular units
No, it will be more a modular unit, but will be a building to have the carbon lab and utilities next But we are also, of course, it depends on the future development of the technology. But modular plant is the goal first.
What do you see as the main risk going forward? Is that more on the customer side or on the technology side?
More on the COVID-nineteen side because we don't know if there's a new stock when it comes to it. Also, the main thing when it comes to the COVID-nineteen is, of course, that we can't travel. And we also one of the risks that we see on the technology side is the microchip luggage. There's a and of course, but we have go around it when it comes to the PLC system. But Of course, the microchip is a potential risk in the future.
Thank you. Yeah. How is the Ramp up towards 20 fourseven production going.
It's good. We're just hiring 7 or 8 production workers. Today, we're starting interviews when early next month. Warkas, the factory manager and Finn, the Chief Operating Officer, will do interviews Initially in the beginning and we will hopefully be finished depending on of course, we want the best Workers, so many of the best workers are already in job right now. So we need to see by December, the hope is to be up and running 20 fourseven.
It's not Anything technical, it's just the lack of people. And as soon as we have the personnel, we will start 20 fourseven production.
Thank you. How do you see the competitive landscape?
There are, of course, competitors. If not, it wouldn't be So there are some huge players using chemical vapor deposition. And of course, it's a revenue of NOK 500,000,000 around dollars So of course, we are not having $500,000,000 in revenue, so there are some other players. And of course, we are welcoming them because we have this Uniqueness that we are producing from CO2, we are cost efficient. And of course, we are welcoming competition anytime because we are going to succeed no matter what.
There is mentioned 4 crucibles to be finished installed in Flesland by Q1 2022. Is this above your previous guiding of 1 module?
This is to more to establish 20 fourseven production, And of course, and to further development when it comes to this modular production, these 4Q Principles are supposed to go into the modular production unit, but we also want 4 in their test factory to learn and to further development the technology because it's not like we are making this modular production plant and then we are sitting down and we are not doing anything. We need to further development always be ahead when it comes to the technology.
Have you done any further testing On the use of flue gas production, and are you confident that the module will be able to produce from flue gas?
We are Currently getting CO2 from Alcoa. And first test when it comes to the modular plant will be at B. Of course, there is a risk not be able to produce from flue gas, but as you may know, there's a lot of CO2 going out there and there's a lot of companies having carbon capture and storage technology. So I'm quite confident that the CO2 part will not be an issue.
Thank you. The next question, I think you have answered this before, but just Take it. Is the factory lot in Musso and supposed to produce production modules or CNF?
CNF?
I was still confident in your guiding and targets for growth. First target is SEK 117,000,000 in How fast can an industrial scale up be performed at various sites?
So the main thing is the long lead items. We need to, of course, order long lead items, and we are ramping up When it comes to modular plants, we can produce X modular plants at our factory in Flesland. But if we see that we need to ramp up. Of course, there's just to move to bigger locations and or buy capacity of other companies to scale up even faster.
Thank you. How much of the CO2 can you capture if it is, for instance, 1,000 tons of CO2?
When was a 273 kilograms per ton, That's the main also, that's the how much sea it is in the CO2. If you have 1 ton CO2, there's 2 73 kilograms of carbon in that CO2. And of course, when we have 70% conversion rate, say, 200 180 to 200 kilograms per ton, plusminus, of course.
Thank you. I think that's it.
Okay. If not many more questions, I would like to thank you for listening. And to the person in the room, thank you for coming. And I'm looking forward to the future.