Hello, welcome to Capsol Technologies first capital markets update and presentation of Q1 2023 results. I am Tone Bekkestad, Chief Marketing Officer at Capsol, and I'm pleased to be joined here today by our CEO, Jan Kielland; our CFO, Ingar Bergh; Chief Product Officer, Philipp Staggat; Vice President Strategic Business Development at Sumitomo, Frank Ligthart; and Board Member, Wayne Thomson. I am very happy to see that so many of you took the opportunity to join us here in person. It always feels extra special to meet people face-to-face, and it's so good to see that so many of you are here. Welcome also to those of you who are joining us online through our webcast. Very welcome to you.
If you have any questions to us throughout the presentation, please type in your questions in the webcast platform, and we will get back to your questions at the end during our Q&A session. Before I leave the word to our CEO, Jan Kielland, please let me run through today's program. Jan Kielland, our CEO, and our CFO, Ingar Bergh, will take you through the Q1 2023 results and strategic roadmap for Capsol. Philipp Staggat, our Chief Product Officer, will then give you an overview of our value proposition, followed by Frank Ligthart, Vice President Strategic Business Development at Sumitomo, who will talk about the possibilities that the partnership between Capsol and Sumitomo opens up, especially within carbon capture from waste to energy.
Ingar will then be back on stage covering commercial traction before our board member, Wayne Thomson, former Chairman and CEO of carbon capture company, Svante, will talk about international expansion. We will then open up for questions at the end of today's presentation. With that said, let's give the floor to our CEO, Jan Kielland.
Thank you, Tone, for a nice introduction here. First, we're going to give you an update on the first quarter this year. It's been an exciting period. We have achieved a lot of what we aim to do, but this is the highlights from this quarter. We will follow up, as Tone said, with a market update, taking it into more details. First, we are proposing to change the name of the company. This has been in the making for quite some time, but we've seen now that we have more traction, we have more activities going on. We're going to establish ourselves as a global player. Also that we have last year and first quarter this year, we have developed a technology platform. We can offer now solutions to almost any industry with large emissions of CO2.
This is important for us, it make good sense for us to change the name to be in line with what we're actually doing and what we're offering to the industry. We have also seen, as a result of the increasing market in this space, carbon capture is going to be one of the biggest industries in the world going forward. We want to play a part in this, we're scaling up, we're going internationally. We want to be able to attract international investors into our company. Euronext Growth has been a good place for us to be, at the same time, we also recognize that with increased news flow, increased activity, maybe the main board is more natural for us. We will take a decision around this in the second half of this year. Now to the review of 2021 first quarter.
Here you see some of the highlights. We see traction now in waste to energy and biomass. We get inflow of paid studies. To simplify a little bit, we do two sort of studies. Sales engineering is not paid for. That's how we interact with clients and that get them interested in our technology. Second, they award us contracts for doing paid studies, which will help them to reach a decision, final investment decision. We also started off the second CapsolGo campaign with the second unit in Germany this quarter. We are quite impressed of being able to build two units within six months. We have engineered them ourselves, and we start operation, and they work from day one. What we hear back from the clients, they're very, very pleased with the performance.
As what we do, we expanding our technology platform. One of our clients in Germany, he want to see the effect of liquefaction, how that can impact the process. We are focusing on carbon capture, but liquefaction, we actually take the captured CO2 and liquefy it. It's important for several reasons, for transport, but also if you want to use the CO2 for something meaningful. We are designing a small unit now that can produce food-grade CO2. Of course, we enter into a partnership with global players. We have already here today, Sumitomo, where we reached an agreement with last year. We're very happy to have them presenting afterwards. This is with Siemens. It's a MoU, but it's really for them being able to support us and our clients with all their knowhow within what they can deliver to our plants.
Short on the liquefaction unit. As said, the current scope and the scope for us be involved with carbon capture. Also we do liquefaction now on a demonstration scale. We're never going to offer that on a full scale because there are already so many providers of that business in the world. We like to help our clients. It's currently being built. It's been designed for the past first quarter here, and it will get in operation in third quarter, and it will be financed under our agreement with DNB, a green financing. Of course, that is very helpful for us to be able to increase our activity, that we get access to debt financing. We are excited to see the result of the testing.
Of course, this is in Germany, and they are, of course, concerned about how to capture the CO2, but more important, how to transport and store it. They are a big chemical industrial player in Europe, the biggest one, and they are interested to see what can they do with the CO2. It's not only a waste, it's a chemical that used in the food industry and other industries. Very shortly on the Siemens deal. Siemens is a global player. They have stellar technology and stellar performance in delivering flue gas compressors and expander packages. That is a major part of the CapEx in the plant that we are licensing out. We hope to sign more agreements like this, but this helps us and our clients to really de-risk the whole project. They have full control over the cost.
We know how to integrate that into our system, this is a good offering, working together to our clients. We now are excited to see the development with Siemens Energy. They are, as said, a global player. They're a major player, but so far everything indicates that this will be a very fruitful relationship. Now I turn the word to Ingar that will give some of the highlights on the financial side.
Thank you, Jan. I'm going to give you a brief run-through of the quarterly numbers. In the quarter, we have continued to focus on building our pipeline of project and building our commercial relationships. The numbers in themselves are really not that interesting. They are in line with what we have planned. We saw the revenue coming in at NOK 4.2 million. Pre-tax profit slightly down, representing a continued growing organization, at -NOK 10.3 million. As Jan mentioned, we tapped into our facility with DNB to finance our CapEx, it shows that we have regular access to that part of the capital markets, which is important. Let's see. As mentioned, revenue in Q1 was slightly down from Q4 last year.
This is basically because we had our first CapsolGo unit coming off contract at the start of the quarter. Did some upgrades to it. We had the second CapsolGo unit coming on contract the end of the quarter. Most of the quarter was between contracts. Going forward, we'll expect revenue growth, first from getting more of these demonstrations units into service. We now have two units plus the liquefaction unit coming on. We are seeing a very steep increase in demand for paid engineering services, basically moving our projects from the sales pipeline over to more detailed engineering, which we generate revenue from. Of course, in the longer run, licensing revenue is where the business is, and that is where we're heading, and that will see the large revenue.
Revenue we are generating now, it's nice, but it's more about being self-funding. The real revenue comes in the future. We have a comfortable liquidity position. We ended the quarter with NOK 38 million in cash. We have secured this new green loan in NOK 12 million. Based on the current burn rate, the next four quarters will run at about NOK 48 million. Contracted net revenue, that means signed contracts, is at NOK 47 million for the four quarters. After debt service and the committed investments we have, by the end of Q1 2024, we are at about NOK 30 million. This is a conservative estimate. We expect, of course, more revenue, but we also expect to increase the spending to further grow the organization and go internationally here.
As now, we are fully funded to execute our licensing model. That was the last slide on the Q1 report. I'll give the word back to Jan to provide the introduction to the capital markets update. Thank you.
Yep. Thanks, Ingar. Again, what we showed here is very much what we made the prognosis one in a year half back. We're following that quite closely, we have, as Ingar said, we have the flexibility to adjust cost according to activity. Right now, we have tremendous increasing activity and also revenues that we have not accounted for here. This looks for us, very promising. This is more into the capital markets update as such. Path to net zero represent a major carbon capture opportunity. The target, of course, it is 2050. To avoid irreversible damage to the climate, this needs to happen. It's vitally important. What will it take? It take to install 8 billion tonnes of carbon capture capacity within 2050.
I love the to talk about this volume. It's the same as 40 million barrels of oil per day in volume. It's more than 40% higher than the global oil production today. There's enormous investments going into this sector, but we play the role of licensing. It's a capital-light model, and we can actually expand globally without being a big organization. The opportunity for us with our licensing model, this represent in total EUR 60 billion in license fee over this period. This is a big number, and we want a part of it. We wanna take a fair share of this market. This is something I've shown a number of times. The map to the right here, it's encouraging to see more and more colors coming on the map.
Our market today has been very much Europe. We see in green where we have firm contracts, where we get revenues from. We see Europe, of course. All countries in Europe are engaged into carbon capture now, but we see new regions. The most important one, the absolutely most important one, is the North American market. This is why we have a separate session today talking about this market. We are already engaged in this market, but we need to expand. Also, we see the Middle East and the Far East, they coming on strong now. We see other regions, South America, South Africa, they have projects. We're working on projects in these regions. It's very fascinating for us from a climate perspective, but also from a revenue perspective.
We are...t his technology development, what we're dealing with, really start in 2003, it's been spent almost NOK 500 million during this period to get to where we are today. We are listed on the Euronext Growth, and we have a high capture rate. We normally offer something 90%-95%. We can do more, but this is a optimization that we do together with the client. This is the carbon capture market outlook. This is the size of the market. This is based on the Rystad numbers, but it's similar to the numbers you see from IEA. Where we are today, around 100 million tonnes being captured every year. That has to increase to almost 8 billion tonnes a year in 2050. Enormous growth.
To illustrate the size of this market in 2050, to get there, we need to execute and install two Brevik plants every day going forward. This is the challenge, and this is the opportunity. We are well-placed, and we're going to adjust our activity towards this curve of increased activities there. You may say, "If some of these projects are being delayed, what's then?" Well, we have to do this. You have a larger uptick later on going forward. Will this project happen? We believe so, and that's why we see studies being done. They pay for studies. It's a good yardstick for us. To the right, you see the ETS prices in Europe. It's been increasing rapidly. Now it bounce around EUR 100 per tonne, and we expect it to increase over time.
More important, you see it on the slide to the left here. The U.S. market, they have this new legislation that gives you tax credit, $85 per tonne, for every tonn e CO2 safely stored in the ground. This market, 2,400 million tonnes of CO2. It's enormous market. Many of these projects are becoming economical with the $85 today because they have already developed infrastructure for CO2 handling, and they have access to storage capacity, almost unlimited, at very low cost, and they have big plants, efficient plants, that can easily be captured CO2 from. We see in the European market, it's more in Europe. We are more focused on the stick than the carrot, and we see more of these projects becoming economically attractive. The market here represents, you see, Norway, Sweden, Finland.
They are a small market, but still important, and there's a high motivation for doing something. We are, of course, U.K. and the rest of Europe, all of these markets are very important for us. This is a curve we have discussed very much over the last quarter. Why do we see all this incoming requests now? What's happening here? Of course, this is what we call the inflection point. Because we see new industries from new regions, they contacting us because they see that one day in the future, the cost of emitting CO2 will be higher than capturing CO2. They have to prepare for this, and it's not far out in time now. We see industries like the cement industry, over the past quarter became extremely active. We have a number of activities in our company today dealing with cement. It's new.
We saw in other industries, silicon producers, metal producers, they know if they are not able to have installed capacity, if their partners or their competitors install capacity, they will be out of the market. They have to get used to this. They have to start planning. They have to do studies, and it's driving the whole business. This is one main reason why we see this enormous increase in market activity over the past quarter. By this, I leave it back to Ingar to take us further on to the technology side, and the offerings here.
Thank you again, Jan. Let's see. What we want to do, we want to make carbon capture viable for more clients. We want to bring down the cost, bringing efficiency to the market. What our clients value when we start getting into it are a few things. First, our solution has a significant reduction in energy consumption. This is very important because of energy consumption is the key cost factor in carbon capture. When clients start doing the math with our technology, they instantly get very interested and want to move forward. Additionally, low operational risk is important. Our end-of-pipe solution, we call it end of pipe because we basically place it at the end of the plant.
No special interaction needed with the plant, which is if you have a major power plant or a large waste incineration plant, you do not want this to go down for six months. It's very important for the client that it stays up, and this is a major selling point for our clients. Very important. The technology we are using and the basis process here has been used in 1,000 plants for many decades. It's well-known, so it brings comfort to the clients. Lastly, safety. Health and safety, often you won't get to the table if you can't prove that you have a very safe and reliable process. The chemical we use to strip the CO2 from the flue gas, which is the most important thing we do, it's potassium carbonate. Combined with CO2, this is basically baking soda.
You know, it's very benign, non-flammable, non-toxic, non-explosive, very easy to handle. As an added benefit, you can buy it off the shelf from the commodity market. It's very cheap as well. With all this, the clients are really seeing that even if they had almost selected the technology, when they come talk to us, they reopen processes again. We have seen that several times, and it's very encouraging. Of course, a good value offering is all well and good, but can you do it? Risk, a very important factor. Are you mature? Can you bring this technology? Can you deliver on your promises? This is really where we have ticked quite a few boxes, and we are perceived as one of the mature technologies out there. It's been developed over a period of 20 years based on well-known technologies to start with.
We have had three successful pilot projects during this period. We have now built our CapsolGo demonstration units that are out at the client plant, testing our technology with their specific flue gas, bringing them comfort. Yeah, see it. They can kick the plant. This works, right? It's physical proof, very important. We, of course, are also doing collaboration with large international companies. This, they want to work with us because they see a potential in this technology to capture market share and want to help bring this to a market. This is a stamp of approval. Finally, of course, the proof is in the pudding, being able to sign a commercial license agreement with Stockholm Exergi last year was also a big thing for us. We're a small Norwegian technology company. The world is big.
The market is enormous. How do we approach this? We, as a core part of our strategy, is partnering with large global players, and we do this in three specific areas. First, value enhancement. We need to make sure that we always offer the client the best value, that we continuously improve. We are working with the likes of Sumitomo, that we'll present later here today, among other things, standardizing solutions, optimizing key equipment to fit well with our process and bring comfort as we're doing with Siemens Energy, and also finding industry-specific modifications, working with the leaders in specific industries. Secondly, sales and marketing. We have looked at the projects where we have not been selected today which move forward. Nine out of 10, we weren't on the radar.
That's, we are still, we are starting to establish our brand name, but we are still a fairly small and unknown player. Of course, if you talk to carbon capture people, they will know CO2 Capsol and now Capsol Technologies, most of them. Still there's a lot of work to do, not only to get the name out there, but to actually execute the sales which are also a comprehensive process. Lot of focus on this, working with key global players to make sure that we are part of the selection when they start looking at technologies. Finally, plant delivery. We do not build plants, we license technology. For the client, of course, very, very important that the plant is built correctly, work correctly, and that you get comfort about this.
It's a billion-dollar investment, often. We work with a number of partners to make sure that they know our technology, that they know how to build it, and also ultimately operate it. These are the three areas where we are focusing on in partnering to make sure that we can be able to become a global technology provider in this space. We have built our business model around that we expect a large volume of projects going forward. Jan mentioned we need to install, actually build two Brevik-size plants every day from today until 2050 to reach sort of the minimum volumes required to be captured by the carbon capture industries. The numbers are sort of mind-boggling, but it's a major challenge, but we'll be there to help make it happen.
In this type of industry, it's, we see it's about volume, and then it makes sense for us to go for a technology licensing model rather than actually go into building plants. We can do 10 times as many projects per year at 10 times the margin with a smaller organization. The risk reward from that business model, we believe is superior. We generate a few income streams, as I mentioned previously here. Right now we are doing paid engineering, we are generating income from our from our demonstration units, but of course, the real money is in licensing, which we will start seeing when projects move into the Final Investment Decision. Which also with the licensing model, we get paid earlier than than you do if you have a EPC-type model.
We do a lot of project work. We work with tons of projects. We get a great insight into the industry and the project, and we have a good technology platform. Should we stick with licensing only? We are looking at building on to that platform high-value services that can generate reoccurring revenues from all these projects that we are working on. This is something we are sort of working on in the background. It's not yet materialized, but there's something we see a large potential for. To become that global player, we are looking at four strategic pillars. First, technology. We need to stay on the forefront. We need to continuously improve and make sure we offer great value to the clients to win projects. That's sort of a given.
With all this project work we're doing, we're also seeing new opportunities, as I mentioned, both for services and sort of products. That's the second pillar, is taking what we learn in engineering, bringing it over into product development, and continuously looking for ways to add value to the client offering and of course, to value generation to the company itself. Third, sales and marketing. Streamlining this, making sure we are wherever we need to be. Finally, engineering and implementation from not, again, not engineering the plant, but there's still engineering to be done to deliver the technology package. To deliver on volume, this needs to be streamlined, we need to optimize and automize, and that is one of our key areas working on going forward.
Two. In the end, being one of the absolute leading players in this space with a target of 5%-10% of the market. Finally, a little illustration on how to do the math on a company like us, and this is only, again, only on the licensing technology revenue streams. We have shown this graph before, but use slightly different numbers now and split it in a different way. We have the time period from today until 2030, and we have the time period for the next decade. We bring this in to show even if the numbers has to be great, large in the coming period, going forward, you know, the next decade, they have to be 5 times higher again.
within this decade, it needs to be sanctioned 1 billion tonnes of installed capacity. At our targeted revenue of EUR 7-EUR 12 per tonne of installed capacity, that makes it a market size for technology licensing of between EUR 7 billion-EUR 12 billion. With our target of 5%-10%, this is, should generate then a revenue for our type of company between half and EUR 1.2 billion over these next seven years. Of course, for the next period, five times as much. Our targeted with the licensing model, great benefit that you can achieve very good margins because it's a small part of the overall cost, but it's the most important component in deciding the overall cost.
If you have a good technology, if you have a good offering, you can also demand quite a good margin in there. We are targeting 40%-60% margins from these revenue streams. That was it for me, and I will give the verge to Philipp Staggat, our Chief Product Officer, who'll talk a little bit more about technology and value offering.
I'm Philipp Staggat, Chief Product Officer of Capsol Technologies, and a part of this amazing team of engineers who trying to solve these challenges of emitters globally every day. Today, I talk about our value proposition and how this does translate into the specific needs of emitters. Today, we offer a technology that is energy efficient, environmentally friendly, and flexible, and we utilize the proven and safe solvent potassium carbonate. This solvent is already installed in more than 700 plants globally, but more in the gas processing industry. For the post-combustion carbon capture, where you process the whole flue gas of a power plant, this has been seen as too energy demanding. Why? You have to pressurize the whole flue gas to make the chemical reaction work.
We solve that issue, that challenge, with our patented technologies, making it energy efficient, environmentally friendly, and flexible. Also, we have a mature technology. While other technologies still are in a research development phase with TRL levels below 6, we can offer our subsystems on TRL 9, showing with utilizing proven equipment being already demonstrated in several commercial applications. Overall, we offer today, with our patented system, a commercially ready solution. There are many drivers and parameters for emitters to compare between the technologies when deciding which technology to choose. CapEx, environmental impact, waste generation are some of them, but of course, the biggest chunk of the capture costs are often the OpEx costs. Here see a specific example from a Swedish pulp mill study which indicates this difference.
While we, with our technology, are able to capture the whole carbon dioxide on 0.7 GJ electricity, competing technologies set on a heat level of 2.5 GJ, totally higher costs for capture, which you can see on the right side. This is our product offering as of today. Of course, we continue to develop that. In the center, you see our Capsol End-of-Pipe solution. This solution is connectable or suitable for any kind of flue gas source, as we are able to vary with the pressure in our absorber. Here, these plants typically higher or larger than 100,000 tonnes of CO2 per year, but also goes up to more than 2 million, and we can also put these plants in parallel to meet any emitters' demands. The CapsolEoP solution is demonstrated with our CapsolGo demonstration units.
Here we have a capture demonstration, but we also start now to implement our liquefaction unit. Here we can achieve EUR 150,000-250,000 per month during the testing periods with these units. Not to forget, the CapsolGT solution, which is a new joiner in this portfolio. It is a really low cost opportunity for emitters to not only capture 95% of the carbon dioxide from open-cycle gas turbines, but also to generate additional electricity within the capture plant. Earlier, I spoke about the flexibility of our solution. We are able to, by varying the pressure in the absorber, to capture carbon dioxide from almost all flue gas sources.
With our vision as a company to accelerate the transition to a carbon negative future, we concentrate on the one hand on the hard-to-abate industries such as cement or gas turbines in the power mix, but of course also biomass plants and energy from waste plants with this significant negative emission potential, which will actively clean our atmosphere. Diving a little bit deeper into cement industry, we have a very suitable solution. It's not only energy efficient, but also to give you a key insight to these plants, these are no real heat plants or power plants. They typically don't generate the steam needed for a desorption process already in their plant, so they're not used to generating steam.
With our system, we can power our capture system only by electricity, and then the steam for our desorption process. By the means of electricity, we produce on a very high efficiency level. We have a significant advantages with these fully electrically powered system for cement production. Looking to the biomass industry, we have, of course, as you see in Stockholm Exergi, a suitable solution. To give you another insight, these plants not only generate electricity, but they also provide, mainly in Europe, valuable district heating energy within residential areas. We can boost that heat output with our so-called district heating mode. Here, in the winter times when the client needed it, with 1 additional megawatt of electricity, we can generate 8 MW of additional district heating energy, sometimes even more.
This is significantly more efficient than all of the typical heat pumps currently being installed in Europe. Open-cycle gas turbines are, of course, a big challenge for carbon capture solutions. They have CO2 concentrations in their flue gas of 2.5%, 3%, so it has been seen as very expensive to capture that carbon dioxide. We have turned our patent and also applied for a new patent to turn that into an opportunity. We utilize the whole waste heat from the open-cycle turbine on our compressor expander package, generate additional electricity, but also get the 95% capture addition for free.
We are currently in discussions how we scale up and partner with this solution, trying to find the needs or trying to meet the needs for all of these emitters of 3,000 plants just in Europe and U.S. operating on gas power or on gas. On the energy from waste side, here, typically not only burning the waste, but also providing electricity and heat, we can boost the output with our district heating mode and also are able to meet the flue gas fluctuations which come from the burning different waste throughout the day or week. Before I hand over to Frank, little insight from our CapsolGo demonstration units. You see it on the right side. It's currently installed at two clients' facilities throughout Europe.
This is a very effective tool for clients not to only gain a technical insight into our solution, but also to involve the key stakeholders, training the internal teams, and taking important step to accelerate their CCS projects. With this, I will hand over to Frank Ligthart.
Okay. Thank you, Philipp. Good morning, ladies and gentlemen. Welcome to this capital market update by Capsol. Also on my behalf, very nice to see so many of you interested in carbon capture, which obviously is a very important measure in saving the planet. My name is Frank Ligthart. I represent Sumitomo SHI FW, where I'm responsible for strategic business development, working with our solutions in energy generation, waste to energy or energy from waste to fuels, and of course, carbon capture. I was kindly invited by Capsol to be here today to introduce ourselves and also to talk about the partnership that we have with Capsol to develop and supply carbon capture systems based on their technology.
Very briefly, at the SFW, as we abbreviate ourselves, our mission is to power a decarbonized world for everyone, and of course, carbon capture is a very important part to materialize that mission. Diving a little bit into our company first because I sort of realized that not many of you may know us. If you see our name, Sumitomo SHI FW, then the SHI stands for Sumitomo Heavy Industries, which is a fairly large Japanese technology conglomerate headquartered in Tokyo with a revenue of about EUR 6 billion, and who is our owner since 2017 when they acquired the fluidized bed boiler business from Amec Foster Wheeler at the time.
The FW in our name stands for Foster Wheeler, which was a large U.S.-based oil and gas and power engineering company, and basically represents our roots going back more than 130 years. We are best known as the market leader in the fluidized bed combustion of solid fuels, including biomass and waste streams. With that, we have today almost 700 boiler references for solid fuels worldwide. We do much more than that. We have five business areas in which we are active. Energy generation, that is all about the boilers. Carbon capture, of course, the reason why I'm here today.
In that business, we have three technologies in our portfolio, two based on our own fluidized bed technology, including oxy-fuel for circulating fluidized bed boilers and calcium looping, focusing on the cement industry. The third part of our portfolio is the Capsol technology, with which we focus on the waste to energy and the biomass to energy industries. As you can see here, on the left—oh, no, sorry, on the right for you, I guess. We are a truly global company. We have 1,800 people serving our customers located in the U.S., various locations in Europe, and also various locations in Asia. That is also where most of our boiler references are located. A very strong track record in these geographical areas.
Moving on, Capsol also asked me to briefly reflect on how we see the potential. I think Jan and Ingar have already done that job for me. Little bit of a repetition, but I think first we need to sadly conclude that global CO2 emissions are still growing. That is the wrong direction, and the slow action, of course, now requires more and more aggressive decarbonization scenarios. I think the good story for us here today is that carbon capture and removal is now generally recognized as a very important element in the mix of measures to reach the Paris target of staying within 1.5 degrees of global warming.
I guess it's also fair to say that between 2013 and 2018, the activity in carbon capture was going through a valley of death, but we have seen a very strong increase in development of carbon capture capacity in the last five years. Significant increase last year with 44% more development of capacity compared to 2021. The main reasons we try to sort of here summarize, so the catalysts of all this activity are, of course, first of all, the stick, as Ingar or Jan already mentioned, the carbon pricing in Europe, so the emissions-t rading system, the Carbon Border Adjustment Mechanism. The ETS price in February was already above EUR 100 per tonne of CO2.
The carrot in the U.S., the Inflation Reduction Act, stimulating and promoting a lot of activity in carbon capture. I believe the subsidy there is about $80 per tonne of CO2 stored. We also see a lot of, let's say, increase in demand for biogenic carbon to produce drop-in synthetic fuels, so by combining green hydrogen from electrolysis with biogenic CO2 from biomass to energy flue gases or waste-to-energy flue gases. Of course, the voluntary carbon offset markets play their own role, but I think the biggest facilitator at the moment for carbon capture really is that there is a lot of activity at the moment in these transport and storage infrastructure projects.
Of course, Northern Lights here in Norway is the most famous example already under construction. In addition to that, there are more than 30 of these hubs, transport and storage hubs, in the pipeline in various stages of development, 17 in North America and nine in Europe. I think slowly the pieces of the puzzle are falling into place. There are financial incentives making carbon capture economically sensible, and there are infrastructural facilitators making it also physically possible. I want to zoom in shortly on one particular market that we are approaching together with Capsol Technologies, and that is the European waste-to-energy market, which represents a very significant opportunity already on the short term.
One of the main reasons, of course, is that last year, the EU parliament actually approved the inclusion of the fossil CO2 emissions of waste-to-energy facilities in the EU ETS already starting in 2026. Within three years from now, waste-to-energy operators may be faced with EUR 100 cost per tonne of fossil CO2 emitted. If you then realize that there are over 550 waste-to-energy plants in operation or under construction at the moment in Europe, emitting about 115 million tonnes of CO2, of which about half is of fossil origin, you can make your math that the industry may be faced with an annual additional cost of about EUR 5 billion EUR in only three years from now to pay for the carbon allowances.
There is a lot of pressure now on waste-to-energy operators to do something. Pretty much all the waste-to-energy operators in Europe are at the moment thinking about carbon capture, and many of them are actually planning for it. And if you then also realize that actually there's still a lot of waste-to-energy capacity to be built in Europe, yeah, you can again do the math, and you come to quite a considerable market potential in Europe for carbon capture in waste-to-energy facilities that we have estimated between EUR 10 billion and EUR 20 billion in the coming 10 to 15 years. That is a significant market for us. Shortly about why we as SFW decided to go with this hot potassium carbonate process to complement our carbon capture technology portfolio, and specifically with Capsol Technologies.
Here are a number of reasons. First of all, like, I think Philipp already and Ingar already mentioned, the material that is used to make the solvent in the HPC process is a low-cost material and doesn't pose any risk to health and environment, unlike some other technologies out there. That was very important for us. The fact that the HPC, the HPC process, sorry, has been widely used in oil and gas industry for carbon capture. The material is widely and freely available. Like mentioned, has a low cost. The HPC process also has a relatively low makeup need, overall the management costs for your solvent are relatively low.
Capsol, as already explained, in detail by Philipp, Capsol has this patented heat recovery technology that optimizes the HPC process efficiency. It also enables the powering of the carbon capture process by only electricity or a combination of steam and electricity, so making it more flexible. Very important, of course, is that it gives a lower energy penalty for your carbon capture process in comparison with other technologies, which makes, of course, for better feasibility. Like Philipp already mentioned, a lot of the heat that comes off the process at low temperatures can be used for district heating, providing additional revenues for the CO2 emitter.
The process has been widely used in oil and gas industry, but also in biomass to energy, so it has been extensively tested by Stockholm Exergi in the flue gases of their biomass to energy facility in Stockholm. It was also selected for Stockholm Exergi's very ambitious carbon capture project aiming at capturing 800,000 tonnes per annum of CO2. Like Ingar mentioned, they have a license with Capsol for that already. Also, the waste to energy application has been widely tested with the CapsolGo mobile pilot plant in Sweden. It has a good basis in that sense. Yeah, we believe that our companies complement each other.
We have extensive expertise in engineering plans and executing complex projects worldwide, and that is now complemented with the expertise of Capsol in designing the process for the HPC. A win-win. That's why in December, we signed a partnership agreement which includes for a non-exclusive cooperation between the parties to first develop, of course, and then also deliver standardized carbon capture plans for the waste to energy and the biomass to energy industries based on Capsol technology. In this partnership, Capsol will act as a process designer and as a licensor to SFW for that technology, and they have a preferred technology provider status at SFW for HPC.
We, as SFW, we will develop and supply these carbon capture plans to the customers using Capsol's technology, and we have a preferred status with Capsol for HPC systems in our own installed base that we already have and may develop going forward. Since December, we have been very active, first of all, to develop the carbon capture plant design, but also to offer. We have jointly made an offer for a carbon capture plant to Westenergy, which is a waste to energy facility in Vaasa in Finland, treating about 200,000 tonnes per annum of municipal solid waste. Westenergy have been planning carbon capture already for quite some time. They are considering two options.
One is to start with a small plant capturing 20,000 tonnes per annum of CO2. The other option is to go immediately to a full capture plant and capture 200,000 tonnes per annum. The CO2 is not going to storage. It's being used. It's going to utilization. For the small plant, actually the offtaker is the Westenergy Sampo project, which is aiming at the production of liquid synthetic methane, combining green hydrogen from electrolysis with the biogenic CO2 captured from the flue gases from the Westenergy plant.
This project is expected to advance into a FEED stage, so the front-end engineering design stage, already during the fall of this year, with the aim to reach financial closure by quarter one of next year and to take the plant into operation in 2025. To wrap up this short introduction, a few words about our go-to-market strategy with Capsol technology. I think most of this has already been said, but of course, the partnering has been a very important element in our go-to-market strategy. We signed this MoU with Capsol Technologies, and both parties have the intention to, yeah, to sign a license agreement and to negotiate a more definitive agreement on our future cooperation. That is a very important element.
In terms of customer segments, I think by now you. Got it. That we focus on the waste to energy and the biomass to energy industries where we are very strong as SFW, mostly on retrofits, so adding carbon capture to existing facilities to make them carbon neutral or carbon negative. We also see an opportunity to combine carbon capture with new build energy from waste plants. We have this small scale energy for waste plant concept that we bring to market together with our other partner, WOIMA, and we have already made a modular design for that scale together with Capsol. Geographically, we first focus on Europe, because we are, yeah, we are very strong in Europe.
We have a strong reference base. Specifically on the Nordics and the Baltics, first of all because there's a large waste-to-energy and biomass-to-energy capacity in that area, but also because there is a significant district heating network in that area. We learned today that, yeah, the HPC process and the Capsol heat recovery technology has a specific benefit in that area, providing for additional revenues for the CO2 emitters. We're already looking into the U.K. and the Benelux, both very active again in CCS, in waste-to-energy. Also mentioned today, yeah, the biggest market will be in North America. Obviously we are going to focus on that as well. We have a presence in North America facilitating that.
As a third step, we start to explore Asia in first instance in Japan and South Korea. In both countries, we have a strong presence, and we have a very strong market share in biomass to energy. With that, I would like to thank you very much for your attention and, yeah, wish you a nice continuation of this event. Thank you.
Thank you. I believe it's me again. Let's see. Thank you very much, Frank. Interesting to hear, I think interesting for the people in the audience also to hear a little bit of what we are doing with our partners. I'm going to cover a little bit on the commercial traction. You know, last year was a lot about establishing the technology in the market and getting our name out there, starting to build a sales pipeline. Going forward, it's going to be all about converting that pipeline into real projects, moving them from sales engineering and further down the line, ultimately towards final investment decision, of course. We're also going to give you a bit of insight on the type of projects we are working with a little more depth than we have done before.
Over the year, over last year until now, we have experienced a steep increase in demand for our services and our technology. This has a few drivers. Firstly, what's been covered here with the carbon capture market as a whole being driven by almost by the lack of action on in other areas to with incentives and penalties to that almost every industry in the world is looking at this now. Of course, they come to us and other carbon capture players to see what we can do, and there's been a steep general increase in the market there. At the same time, we see a few company specific drivers that are specific for us. One, and the most general one, is that the more people learn about our technology, the more people learn about our technology.
It sort of accumulates, it spreads out like waves. It's, you know, it's a exponential curve really in the math of it simply. More specifically, you know, we had our CapsolGo demonstration unit, real physical evidence. They generate a lot of attention for our clients. There's lots of press visiting, there are other companies coming in, and we are of course there with our logo on the wall and welcoming them and seeing what we can do together as well. This just generates more business for us. Having the license agreement with Stockholm Exergi, one of the biggest biomass projects, capture projects in the world, also a big win for us.
The international expansion, starting a bit slowly with opening an office in Germany earlier this quarter and also having now hired people to be dedicated to go after the U.K., which again puts us on the ground, puts us on the radar, generates more incoming. Try to put down some numbers here to illustrate what's happening in the sales pipeline. Big increases from, you know, nearly zero in 2020 to about 100 today. We're still seeing the most business in Europe. Europe has been the leading power in this space, but also of course our home turf, so it's natural for us that that's where we have done the most business. We're starting to see the U.S. and the Americas coming in.
13% of our sales pipeline is now from the North Americas. We are aiming to increase that significantly. You have the rest of the world with Asia and Asia and ROE, rest of the world. Just over the last 12 months, in our four core industries that we are focusing on mostly now, we see the percent-wise increases of 250% more projects in the pipeline from biomass, 300% up in cement, 400% up in waste-to-energy, 500% up in gas turbines, which, you know, it's quite new.
So it's maybe not a very, you know, t he number doesn't tell you a whole lot, but it's an area going forward where we will see, hopefully, a lot of incoming. This is our traditional sales pipeline that we have used a couple of times to show what's going on on the commercial side. Over here, outside the pipeline, we have the whole industry. We get a lot of incoming. We have a strict system on how we prioritize. First you have to get through that wall. Should we spend time on the project? If yes, we go over in sales engineering. Typically, we sign an NDA. We do initial engineering to see, okay, how's the fit? What's the sort of general cost, general energy efficiency that we can provide? Is it a good fit for your project?
Go a bit back and forth on that. Then, you know, they often come back, and after a while they say, "Okay, depending on how mature the project is, let's proceed." The next step is what we have called here to make it a bit simple for you, paid engineering. It's where we. It's the ranges from a feasibility study, can be one month, three months of engineering, all the way to a pre-FEED study, which can be a lot of, also can be three months. It can be six, seven, eight months as well. It's a wide range of lot of type of studies in this, in this part of the chain here.
Right now we have five projects in here representing about 1.2 million tonnes of CO2 emissions. Over in the next phase, which is engineering to build, this is typically a FEED study where you do all of the engineering to be ready to pull the trigger, make the final investment decision on the plant. At final investment decision, that is when we start to get the real revenue from the licensing contract. Right now we have Stockholm there. They're done with the FEED, and they're awaiting the final investment decision, which will be our first commercial licensing revenue coming in, expected Q1 next year. In addition, we have the CapsolGo, which here we call the fast track, because this is really designed to fast track projects through this sales pipeline.
Right now we have three. We have the one in Sweden. We have two projects in Germany and, of course, also a number of project we are negotiating here. Now to give you a bit of color, you know, real projects to an extent, at least the ones we can name. These are projects that have moved out of the sales engineering and are over in the next phase. Right. We obviously have Stockholm here. In the biomass space, we have Stockholm with the licensing contract. We are doing a FEED study for a biomass plant in northern Sweden.
We have done a feasibility study for a plant in the biomass value chain in the U.S. We are awarded a pre-FEED study there to start in 2023. We have our CapsolGo demonstration unit that is going to do a campaign for a biomass plant in Germany. Cement, the world's largest single industrial emitter. Large plant with large emissions from each plant, a very attractive market, and they have to do something. There aren't really any alternatives to carbon capture. Been a bit slow in cement, but now we're starting to see it come in. We have been awarded a feasibility study for a large plant in the U.K., 700,000 tonnes per annum.
We are shortlisted for another plant of 1+ million tonne per annum of emissions. We are expecting to get awarded, firstly, a feasibility study for this to also start quite soon. We are starting to see in the sales pipeline that there are more and more cement coming in. As Philipp touched upon, we believe our technology is a good fit for cement and it's an industry that really needs us. Waste-to-energy. We were awarded the feasibility study for KVA Linth in Switzerland in this quarter, 100,000 tonne per annum. We have done our demonstration unit in Öresundskraft in Sweden. Actually also now doing another one in Germany for a waste-to-energy plant as well. Should be on there.
We are doing another feasibility and paid studies for a waste-to-energy plant in Central Europe. Of course, we have the Westenergy project that Frank talked about here also within the Westenergy waste-to-energy segment. The final of the four segment is, of course, the gas turbines. This is less mature with now. We are developing this solution. It's based on our standard solution, so it's not like reinventing the wheel, it's adaptations. We're seeing a lot of promise here. When we talk to potential clients here, they almost, you know, go quiet because the energy efficiency here and the output you can get from this is very attractive. It needs more development, and it needs a way to market, and this is what we're working on now.
We are working on developing partnerships, mainly with the people producing gas turbines, because we believe that's the best way to attack this market, is to go with the equipment manufacturers that already guarantees and knows these machines and do this together with them. We are starting to look at selected projects in the call it in the sales engineering phase, a couple of them together with the manufacturers. We are progressing the development of the maturity, basically, the engineering on this, on the standard solution, both in-house and together with partners. This is. I think this is a segment where we really stand out with our solution, we believe, and we have a lot of promise for this. This is my final slide.
Stockholm Exergi mentioned the name quite a few times to give you some more sort of insight on that. Awarded the contract in July 2022 in competition with all mature technologies out there, based on highly competitive economics, proven technology, safe and reliable, and also what Philipp talked about with the ability to act as a heat pump to generate revenue for the district heating business was important decision parameters. The plant has been awarded or the project has been awarded EUR 180 million from the European Union in steep competition with a lot of other carbon capture projects. We believe our technology is part of why they got there. We expect final investment decision here.
They're waiting for their environmental permits at the moment, before they can take the decision. We expect that early next year. That's it for me, and I think I'll give the word back to Wayne, actually. Yeah. Right. Forgot about Wayne. Thank you, Wayne. You can introduce yourself.
All right. Well, good morning. It's As I spend a little more time in this part of the world, it's good to look out and see a few familiar faces. I've actually got a long history in Scandinavia. It's about 40 years ago, I consulted to Maersk and lived in Copenhagen. Two of our three children are actually born in Denmark. I've always liked this part of the world. When Fredrik approached me to approach Capsol and to discuss going on the board here, I guess it's a year and some ago, it kind of fit with my background. I guess more relevant to Capsol is that I had an opportunity to chair Svante for six years.
Frank talked about the valley of death in carbon capture. I managed to live through that with them, and come out the other end. It was really rewarding to be part of growing that company. I don't know if you how familiar you are with them, but they've just raised over $300 million on a $1+ billion U.S. dollar valuation. It's interesting. I just had dinner with their CEO, who I hired here a couple of months ago in Vancouver, he's been very helpful for me. He doesn't see this as a competition because we just talked about the market and the scale of it. There's just lots of opportunity out there.
There's gonna be more than one winner, and we certainly plan on being one of those top winners. You know, I was asked to talk about some of the international aspect of our rollout, and we've had real success with establishing this Berlin office. It was mentioned that we've got two CapsolGo systems going in in Germany. Really, this is over just the last few months. It's really quite exciting to see how quickly we've been able to gain traction there. The U.K., we're gonna serve out of Oslo right now. We've just hired a U.K.-based, you know, U.K. experienced person in our Oslo office. We believe we can handle that out of there. Particularly, I'm gonna focus on the U.S., the North American operation.
It is the largest, U.S. is the largest emitter of CO2, it's not just the scale of it, as I'll talk about, it's some of the advantages that the U.S. has. This is the projected growth in the U.S., we've got, you know, over 40% of the projects or the opportunities we see right in the wheelhouse of the Capsol technology. You know, just talk about sort of the scale. The U.S. has to remove or capture some 5 gigatonnes of CO2 annually by 2050 to reach carbon neutral. We talked about Germany being the largest market in Europe. It's some 700 million tonnes or 0.7 of a gigatonne. U.S. is 5, Germany is 0.7.
The market's huge and we're there, but we've got to be there in a lot bigger way, and that's what we're gonna do. As I mentioned, there's a number of advantages for carbon capture in the U.S. This is a map of the projected, the existing and projected CO2 pipelines, but there's actually already a pretty extensive CO2 pipeline system. It was used for enhanced oil recovery, so it already ties a lot of the fields that you'd be injecting CO2 into to dispose. It's already got compared to having to do something like Northern Lights over in Europe here, this is way cheaper. They've got a pipeline, CO2 pipeline system already, and they've got lots of reservoirs that you can sequester CO2.
Yeah, there's the, of course, the economies of scale of the U.S., and I'll talk about the subsidies that are there too. The permitting process is already easier. I know having operated in Canada and the U.S., and Canada is somewhere usually between Europe and the U.S., the U.S. is so much faster in terms of what being able to get permits and so on, and they're working to even speed this up more. The real recent push, but it's actually building on the, let's say, you know, these names that they keep coming up with for their various regulations in the U.S. The Infrastructure Investment and Jobs Act was in some time ago, and it's had a bunch of carbon capture credits.
The most recent one is the IRA, and that just bumped up the number, the tax credit number to $60-$85 a tonne of CO2. That has really caused a lot of the projects in the U.S. to be economic now. They've also that used to be just a tax credit, and now you can actually be getting actual cash. I mean, you don't have to make a deal with a taxable company and therefore lose some of that credit. The one that's particularly exciting and, you know, has been talked about is this natural gas-fired. That graph is showing that for the most part, the cost of capturing CO2 and disposing of it is too high relative to that $85 subsidy.
Ingar was talking about just the advances we've made in that and the patent application we have in. That number for us is way down from that and makes those some of the most highly economic projects. It's not every gas producer. What it requires is actually usually a simple cycle which ends up with a lot of excess heat, and we make, you know, we make use of that heat to actually generate more electricity and do the carbon capture, and essentially, you can just about come out for the carbon capture for free. We're particularly excited about that natural gas power market.
I think if you look at I mean, we got to solve the cement and the, you know, steel industries and so on for CO2. If you look at where people see this really going, it's renewable energy with, you know, gas-fired, complement to renewable power. I mean, renewable can't do the whole piece and gas-fired power with carbon capture is gonna be, we think, a big part of the future. The, you know, existing CO2 projects, the ones that have been put in, generally involving the amine systems, have really been expensive and haven't been particularly reliable. The, the industry is just crying for a solution, and that's why we're getting such traction. We, we believe we are that.
We're, you know, we're lower cost, and we end up with, you know, rather than using dangerous amines, we end up using the hot potassium carbonate. We've got a proven, reliable, and safe technology, and it's really developing the kind of partners. It's great to see Frank here with Sumitomo. These are the kind of partners. I mean, we mentioned we're a small Norwegian company, but we clearly have turned our attention to the globe. I mean, we've got to be a global leader in this place, in this space. It's been fun to be part of doing that with Svante and see that kind of traction.
That was really attracted me to Capsol was having that opportunity to participate in that. We're not starting from scratch in the U.S. either. We're already there, but we aren't there in a big enough way when I think Ingar was saying is on that slide, 13% of our leads are coming from the U.S., when it should be 50% likely of the leads. We do have one paid engineering study. We're working closely with a company that's large in the U.S. We have two CapsolGo systems ready to go that are close to being committed to there. There's the sales engineering input.
We need Frank, just like we did in Germany, we need people on the ground in the U.S., and we're gonna be doing that. That's it for me. Is it somebody else taking over here? Jan. Okay. There you go.
Thank you. I just give a few closing remarks before we open up for questions. What can you expect from us the next 18 months? We are being awarded more and more paid engineering studies that give additional revenue. There's always a balance how much you should spend on sales engineering towards paid engineering. We're managing that quite well now. We have been asked to deliver a CapsolGo unit in the U.S., which is of course a market opener. It needs to be signed due to U.S. specifications, so we're currently doing the engineering. We will sign more license agreements as we go forward within these primarily segments, but we're also very optimistic about the gas turbines.
That will open up a completely new market to us. As we're getting towards FID in several of these projects, we will get paid for our licensing activities. One that is very important, of course, full-scale operation. To get into full-scale operation, we work as hard as we can. Currently, Stockholm Exergi is there. It will be in 2026. We hope to have other candidates coming on stream before that. Of course, we will develop our partnership. This is the only way we said we have a potential to get to 10% market share. To do that, we need strong global players together with us. We have Sumitomo today. We are excited about the relationship that will be developed.
In certain areas, certain industries, Sumitomo is excellent in what they're doing, but into the refinery business and so on, we need other partners as well. This is a condition for being successful in this market, being a small Norwegian company. We will open up for international investors, so... today, we feel that we have a very, very good position. This is the goals for 2030. We will make carbon capture available for all industries. We will position ourselves as top three in some of the segments. We working hard to see that we will have a way forward to get 10% of this market. We will get license revenues from EUR 7- EUR 12 per tonne installed capacity, and we will have a high margin.
We're aiming to get to 60%, but we're saying it will be between 40% and 60%. I think that is very much up to us how efficient we are in our internal work. Ensure presence in these markets. We have good presence in Europe. North American market will be very important, but later on, Middle East and the Far East. We see so much activities coming. To make all of this happening, we have to rely on good shareholders and a board that support us. We have shareholders that support us today. They are actively giving input to our board. We have a good dialogue with the board. We are in a very good position here to move forward, and we feel that we have wide support for being very ambitious in this market.
Before closing off, closing today, I'm very thankful to Sumitomo that took the time to come here and to talk to the audience here about our relation. Also from Wayne being a board member with a long history in this space and can demonstrate and show to success in what he's doing in the past. We have a good team around us, and I think we are very optimistic going forward. Thank you for everyone coming, and thank you for everyone listening in today.
Thank you so much, Jan. I would like to ask Ingar and Philipp to join us here on stage. We have received a few questions, and I will also, of course, see if there are any questions from the audience. These have come in online. I would like to start with you, Ingar. There is one question here: When you make reference to margin of 40%-60%, what is the margin calculated from? Historic development cost?
No-not from historic development cost. It's the operating margin or a pre-tax margin from... basically, the driver here is how well we can utilize our organization to deliver projects. It's the margin from the top revenue on the on the licensing fee to the pre-tax at the bottom level.
Thank you. Next question, you can decide if it's yourself or Jan answering. Can you provide a few reasons as to why you won contracts over your competitors? Pricing, technology performance, or other factors?
I can start maybe. I think it's not about pricing, as we mentioned. Our part of this, the full cost of a plant is relatively small. It's much more important how we affect the overall cost and operations of the plant. Yeah, it's about having the best solution, basically, best value proposition.
Would you like to add something, Jan?
No, it's absolutely fine.
Mm-hmm. I have a question for you, Philipp, which I believe and hope you can answer. What is the needed electricity to capture 1 tonne of CO2? Can we answer that one?
Typically, we say that to capture a tonne of CO2, we need 0.7 GJ-1.5 GJ. Every plant is different and has different circumstances. If you take for larger biomass or cement plants, the 0.7 GJ figure, that translates roughly to 200 KWh per tonne captured.
Thank you, Philipp. There is a question here regarding storage potential. What are your estimates for the capacity of available storage potential in 2025 and 2030 in Europe?
Well, I can try to answer that. The cost now, it is, and it will disclose by Northern Lights. We see many initiatives that will bring down the cost, and we've seen companies planning for large-scale CO2 storage that the cost will come down maybe towards EUR 10 per tonne. In fact, that's probably where we see the largest potential for cost reduction going forward. In the U.S. market, I mean, it's a different world. It's very low storage cost. It's in some places it's below $5 per tonne. $5 , but t hat's in the Gulf Coast area where they have sedimentary basins, infrastructure in place, everything rigged for this. If you see to the U.S. market, they have almost endless storage capacity at very low cost.
We have a question. You'll decide whether this is something you can and will answer to. I'm pretty sure I'm not the only one who wonders if there has been any internal discussions on the capture numbers disclosed by Equinor regarding Melkøya. Could you please elaborate on your thoughts regarding a guesstimate on possible costs versus disclosed numbers?
I can try to answer. It's, we're not involved in Melkøya project. We, but we follow the discussion. We think, carbon capture should be evaluated, and we believe with the they have gas turbines there, so obviously for us, it's an interesting opportunity, but we're not going to go into that discussion because we have so many projects that we're focusing on elsewhere in the world right now. We wish they come to, at least, what's been agreed now to come up with comparable numbers, and they will take a sensible decision afterwards.
Thank you, Jan. Now over to you. Does any one of you have any questions? You will need to get a microphone before you ask your question. Eloisa will bring it to you if you have any questions, so that we're sure that we get the sound out to our online audience as well. Any questions? Yes.
Thank you. I just, regarding the readiness of the CapsolGT solution, just to get kind of a feel for the timeline there. Do you think you can expect to announce feasibility studies or FEED studies based on this technology over the next, say, six to 12 months, or is that kind of ahead of schedule given that you're still seeking to secure partnerships for this?
I think it's probably be Philip.
As we consider these partnerships, we also focus on how in the timeline we step into these paid feasibility studies, engineering studies for specific projects, and timeline-wise, it's in the same range as you mentioned.
Eloisa, I believe we had a question on the row. Was it Nils or was it? There was someone here, I think, raising hand.
I think it was Nils.
Did you want to say something, Nils?
I have a question to Wayne, actually.
Oh, you're gonna make this tough, eh?
If in terms of maturity and commercial phase, how would you rank Capsol compared to, you know, who else is in the same commercial phase and where is, for example, Svante in commercial phase?
Okay. I'm still a big shareholder of Svante because I didn't have any money. I worked for shares for some time. I think they're gonna be successful, but they're not at the same. I believe we're actually at advanced stage to where they are, because, you know, we've got a commercial project signed up with Stockholm Exergi, and they do not yet. I mean, when the CEO was touring me through the facility, they're spending $100 million in Vancouver on a manufacturing facility because they have to build their beds. Our cheap, ready, available HPC, you know, is they have to build these beds. They're gonna be ready by the end of 2024 with this manufacturing facility.
Whereas for us, we don't need to do that, and we've already got a first commercial. The other pieces that we've, as it's been pointed out, we've got proven technology. We're putting that together in a particular way, and we've been able to patent that around carbon capture with flue gas. We, you know, it's proven technology, whereas the Svante and a lot of the other technologies out there are not proven. What is proven is the amine system. I mean, there's a number of those around the world, but You know, we've worked that for a long time. I kinda think it's as you know, it's close to getting as good as it's gonna get, and frankly, the costs are still pretty high.
We think we can very much compete against the amine systems, and we're ahead in our view of all the other technologies that aren't as proven as ours.
Thanks.
Thank you so much, Wayne. We have a question here, front row. Eloisa.
Yes. Can you say something about the size of the total addressable market and the gas turbine market? How big is it in terms of number of gas turbines installed? How would you size that market?
When we speak about Capsol, when we speak about CapsolGT, we talk about simple cycle or open cycle turbines. Currently, and then within that range, it's typically turbines from 4 MW to 100 MW on electricity production. In the U.S. and Europe together, I think it's bit more than 2,000 gas units in the U.S., including the large turbines as well. However, that number for the large, or that fraction for the large turbine is smaller than for the smaller turbines. We try to address a range of around 1,000 plants globally.
Let's say existing plants, you know?
Yeah.
With this solution, that's for new installed, there is also a great opportunity.
I have one more question. China is the world's biggest CO2 emitter annually, not cumulatively obviously. They emit 30% of the global CO2. They've grown their CO2 emissions by 400% since 1990, while the U.S. has gone down in that period. Obviously, U.S. and Europe are huge markets. How do you see China coming into this... when are they... do you see any signs they're gonna take this seriously in terms of addressing this?
I think they take it seriously now. We have a couple of projects in India that we have opportunities. We do that together with one partner because it's a new market to us. You have to know the Indian market pretty well to get engaged. They have also asked for a CapsolGo unit to be placed in India. We have a number of discussion with Chinese companies. They see this coming, and they want to do something, and they're actively studying capture technologies. What they told me that was, this technology we have is super interesting for them. It's early days, and we have to focus where these projects are becoming economically.
I believe in China you have a ETS or penalty around $8 per tonne, so it's very far different from EUR 100 in Europe.
Thank you so much. Any other questions? No more questions? If not, then I would like to thank you so much, both the people watching online for attending and being with us today for our first Capital Markets Update. A huge thank you to all of you participating here in person. It has been amazing. I hope you have got a lot of value out of this. A large thank you to my colleagues for the presentations they've given this morning. Thank you so much, and have a nice day.