Hello, everybody, and welcome to Bergen Carbon Solutions' half-year report. Bergen Carbon Solutions, BCS, was listed on Euronext Growth, April 19, 2021. Prior to the listing, our share issues was carried out, which secured the company of NOK 80 million in new capital. I will talk about the Q2 highlights, Bergen Carbon Solutions in brief, our technology update, the strategy, key developments, outlook, summary, and there will be a Q&A session after the presentation. 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 toward installation of the first unit in the first quarter of 2022. The unit will be located at BIR waste plant in Rådal 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 six months, we have significantly strengthened the 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 six months are the conclusion of several LOIs related to collaborations with customers and future deliveries of CNF. BCS has entered a LOI with two Japanese companies, one company from China, and in Norway with Yara, and of course, Jackon. Finally, it's important to mention the really positive development in Mosjøen related to establishment of the 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 establishing a factory in Mo i Rana in the future. Development activities related to our production facility at Flesland and the module that will be placed at BIR is the most important activities the next six months. We are currently hiring and training personnel for 24 hours a day, seven days a week production at our Flesland plant, and we are expecting to run production 24/7 by the end of autumn. We are expecting the first 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. Of course, in the COVID-19 pandemic, this may impact some of the timelines and operations. The net result for the first half of 2021 was net loss of NOK 11.82 million, compared to the loss of NOK 1.67 million in the first half of 2020. 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 listing on Euronext Growth. This resulted in a higher cost compared to the year 2020. The company had any significant revenue during the period, but has budget for some revenue and at the end of fourth quarter, based on the development of the new crucible to be completed.
The total operation expenses amounted to be NOK 11.95 million the first half year of 2020, compared to NOK 1.65 million the same period last year. Now I'll talk about Bergen 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, automotive, electronics, construction, building, and of course, textiles. Bergen 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. Of course, we have several commercial production sites secured, as you know, with BIR and of course, Mosjøen.
We were listed on Euronext Growth, and the ticker is BCS. Our technology uses significantly less energy than conventional methods. There are two mainly other methods of producing carbon nanofibers. One is electrospinning, and the other is chemical vapor deposition. The average kilowatt hour per kilo with chemical vapor deposition, also CVD, is 1,400 kilowatt hours. We have a positive CO2 impact because we use CO2 as the input into production. We have an average from 50-150 kilowatt hours per kilo of carbon nanofiber, depending on the size and how much production we are going to produce. Zero emission product enabling a low carbon footprint. This is something that's really important in EU 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 by-product.
We have also called our product Eco-C, and the product line is EcoNano, better known as green carbon nanofibers. We have one material, we have two products. We are mainly focusing on the carbon nanofibers instead of carbon nanotubes, even though we produce some of both. The thing is, the carbon nanotubes has a little better when it comes to electric conductivity, it's a little bit less when it comes to the weight. As you can see, the price is substantial. 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. What is carbon nanofiber? It's a product that's been known and commercialized in 2008.
It has a good revenue stream, $500 million in 2021. PwC made a report we will see on the later slide that shows that there is quite substantial potential when it comes to revenue in the carbon nanofibers. The market price of carbon nanofibers is ranging between 5,000 NOK and to 27,000 NOK, 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 8,000 NOK per kilogram. This is the total market in 2023 to be at NOK 70 billion, and $8 billion. We made a report together, the PwC made a report showing that the expected revenue of carbon nanofibers will be quite substantial. This is something. We have 400+ potential customer and offtake 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 TECO, who we are working with when it comes to the electrical car battery industry, and of course, Jackon, our latest LOI, who make insulation materials, and we want to see if we can have carbon nanofibers in their materials. We are looking at range of different type of companies when it comes to polypropylene, when it comes to different type of composite, cements and so on. An attractive profitable growth opportunity. We have one production module, 30 tons of CO2. It costs the CapEx of NOK 17 million, 6.5 tons of CNF comes out. If you take NOK 5,000 per kilogram, this is a NOK 30 million revenue per year.
Of course, it's modular-based, so when you have full capacity in one module, you just make another one, another one, and another one. 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 24/7 by the end of autumn. In Q1 2022, we are planning to put our modular production unit at BIR Rådal. We are also in discussion with Technology Centre Mongstad, who is one of the pioneers when it comes to CO2 value creation and is an open window to the rest of the world. Of course, we just did an option agreement to buy a plot in Mosjøen to build our factory next to Alcoa in Mosjøen. The plan is to start hiring a site manager in Mosjøen by the end of this year.
Hopefully, the regulation plans and everything will be finished by next year in August, so we can start building the building. We were listed on Euronext Growth 19th of April 2021. We have raised 120 million NOK in capital so on, the cornerstone investors in the IPO was of course Saga Pure, Nordea, and Awilhelmsen, and we are really happy to have such strong and good investors among ours. Number of shareholders now is 3,000, and of course, is growing. In market cap in 24th of August was 1.3 billion NOK. We are also talking to Port of Antwerp, we did an LOI with them in April, and we are of course discussing to have modular production unit at their facility.
Is 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-19 situation open for us to travel. 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. We are positive we'd get good results from the test with the polypropylene that they are testing. We also have a Japanese 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 two 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 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. 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 two different type of project mandates to look at the CCU part and, of course, establishment production facilities at Herøya together with Yara, where we are utilizing their CO2 to producing carbon nanofibers. Of course, it's a political thing, also, of course, they want to utilize the CO2, and they see us as a good contributor to making a CO2 negative net loss in the future. We also introduced an LOI with Jackon. This is an exciting LOI for us.
I need to be honest, I didn't know so much about Jackon 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. Of course, CO2 emission is a big and important part of this journey with Jackon. What are our priorities for 2021? We are finalizing the Crucible Tonø called David project. We are using 24/7 production at our test factory in Bergen. We are finishing the contract for purchasing the plot in Mosjøen.
Several contract for selling product to the customers, Of course, entering into firm contracts when it comes to the LOI, Of course, further establish key partnerships in the future. 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, Of course, in textiles. Now there is a Q&A sessions.
[Foreign language]
We need a mic. Terje Fatnes from Awilhelmsen. 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?
The business model is the same. We are doing scaling and producing the modular production plants. The reason why we want to build a building in Mosjøen is mainly because we have also established a CNF Arena where we are working with our collaboration with NTNU to establish our carbon lab, where we have PhD, master thesis, and NTNU, and other companies can come and test and use a laboratory to test our product.
Do you see that site in Mosjøen like more a factory, or will you still have modular units in Mosjøen?
No, it will be more a modular unit, but will be a building to have the carbon lab and utilities next to it. We are also, of course, it depend on the future development of the technology. 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-19 side, because we don't know if there's a new stock when it comes to. The main thing when it comes to the COVID-19 is, of course, that we can't travel. Also, one of the risks that we see on the technology side is the microchip lack. We go around it when it comes to the PLC system. Of course, the microchip is a potential risk in the future.
Thank you.
[Foreign language] How is the ramp up towards 24/7 production going?
It's good. We're just hiring seven or eight production workers. They'll be starting interviews early next month. Vakos, the factory manager, and Finn, the Chief Operating Officer, will do interviews initially in the beginning, and we will hopefully be finished. 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 24/7. It's not anything technical, it's just the lack of people, and as soon as we have the personnel, we will start 24/7 production.
Thank you. How do you see the competitive landscape?
There are, of course, competitors. If not, it wouldn't be a market. There are some huge players using chemical vapor deposition, and of course, it's a revenue of $500 million around the world. Of course, we are not having $500 million in revenue, so there are some other players. 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 mention four crucibles to be finished, installed in Flesland by Q1 2022. Is this above your previous guiding of one module?
This is more to establish 24/7 production, of course, and to further development when it comes to this modular production unit. These four crucibles are supposed to go into the modular production unit. We also want four 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 BIR. 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 is a lot of companies having carbon capture and storage technology. 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 to take it. Is the factory lot in Mosjøen supposed to produce production modules or CNF?
CNF.
Are you still confident in your guiding and targets for growth? First target is NOK 117 million in 2022.
So far so good.
How fast can an industrial scale-up be performed at various sites?
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?
273 kilograms per ton. That's how much C it is in the CO2. If you have 1 ton of CO2, there's 273 kilograms of carbon in that CO2. Of course, when we have a 70% conversion rate, say 180-200 kilograms per ton. Plus, minus, 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. I'm looking forward to the future.