Good morning and welcome to this presentation of the third quarter results, live from Ocean Sun headquarters here at Lysaker in Norway. My name is Kristian Tørvold, and I'm the CEO of Ocean Sun. Today we'll talk about Ocean Sun in brief, as usual. We'll have the highlighted developments, project overviews, and the financials will be done by Karl. To start out, our solution is inspired by nature. We provide the lowest cost and best performing floating solar system that unlocks access to renewable energy worldwide, and we've been doing this and been unlocking new areas, like we just did in Maldives, where we're now able to put floating solar next to an island resort that has never been done before.
Since we have this amazing technology, the world's best FPV system, we are able to find new markets because we have low Capex, we have high efficiency, also reducing the LCOE, and of course we have a seaworthy installation allowing us to be in many different kinds of markets. I want to talk to you a little bit about the projects we have currently in operation. Last week I was at our Sierra Brava site in Spain. This was during the heavy rain and bad weather that went down in Spain. We saw our system in heavy rain and strong winds, and since this is our only single ring floating structure, we were very excited to see that it handled the waves and the winds very well. Our cooperation with Acciona is good, and we had many good meetings with Acciona and other players in Spain last week.
We've also been in Banja in Albania over the last few weeks, applying new learnings, making improvements to our project there, and in collaboration with Statkraft, we have progressed a lot in our installation in Albania. For BOOST in Spain, the system is still at shore. We are working on improving our designs for the offshore market. This is good progress, and we aim to finalize the designs this quarter and relaunch the BOOST installation early next year. Lastly, just a couple of weeks ago, our installation in Magat, Philippines, went through Typhoon Kristine. This was a very severe event. The typhoon passed just a few kilometers north of our installation with a lot of rain, over 200 millimeters. Still, the system handled it very well, and just the day after the typhoon, it was back up and operating as it was before.
This is a huge moment actually for Ocean Sun because we are the only typhoon-safe floating solar solution, and we're proving that again and again at Magat. Now we have exciting updates from South America. Our first project will be in Brazil. It's a 250 kilowatt peak demo system that will be built the second half of next year. This system and this funding comes together with funds for an R&D project where we will continue to improve our module fixation systems in order to reduce costs of our system and speed up the installation process. So this is a huge opportunity for Ocean Sun to get the pilot, but also to progress our system with funds from the Norwegian Research Council. Also in the Maldives, things are going as planned.
We're starting installation work this week with welding of the pipes, and we're seeing that the timeline of finishing in March next year is still on time. As we all know, the time it takes to build a renewable energy project or to get approvals is long, and Ocean Sun has therefore implemented and are continuing to enforce the use of pre-feasibility studies or PFS studies, as we call them. This is so that we can do the engineering early in the process, allowing the customer to get the engineering package so that they can finalize the approvals on their own. This is a paid study, so it allows us to get early revenue, and it also helps us to have many projects lined up, ready to sort of go through the process of approvals so that we can work on many projects consecutively.
We have good traction on these pre-feasibility studies, and the industry is adapting to this kind of way of working. We have onboarded now both our new COO and CPO. I'm very excited to have both David and Karl-Petter on the team. They bring valuable experience, and I'm really looking forward to them getting completely into the system and start making improvements and implementing all their ideas. Lastly, our CCO, Alexander Telje, resigned in October, so we have started a process of recruiting a new CCO who will hopefully be found and employed in November. This is also an exciting project or process for us, and we're really looking forward to finding the right candidate, so in all, Ocean Sun, we currently have 11 projects in six countries around the world. We have 3.8 megawatts installed.
We have 6.3 megawatts in our backlog currently, and we have 36 megawatts in our pipeline. So there's no doubt Ocean Sun is on our way to unlocking access to renewable energy worldwide. Now, Karl, can you come and do the financials?
Thank you, Kristian. Hello everybody. Before we go into the numbers, I just want to make a short recap of the ongoing R&D projects that we have. We are often mentioning them, and we get quite significant revenues from these projects. So I think it was time for a quick update. We currently have four projects ongoing with the Research Council. It's two newly awarded Skattefunn projects, where one is focused on O&M and improving the O&M structure of Ocean Sun. And the second one is on designing a cost-efficient design for Ocean Sun on reservoirs and more benign waters. In addition, we have an IPN project, which is a project where you do research together with the business. And here we are partnering with IFE and doing work on our modules, documenting the performance gain and documenting how panels are doing on our membrane.
Lastly, the newly appointed Brazil project that Kristian mentioned is also through the Research Council, where we will have a NOK 4 million awarded to Ocean Sun, and in addition, the Brazilian partners will have funding from FINEP to carry out the demonstration system in Brazil. We have three projects with Innovation Norway, a Green Platform project together with Scatec and Prediktor, and also IFE that's about to close up, focusing on hybrid power with solar power on hydropower reservoirs, studying the interplay between these two. We've done a lot of work focusing on the Magat dam and the potential for expansions there, and then we have another green platform project together with Hydro, run by Hydro, called AluGreen, focusing on the use of green aluminium in different applications, where we are together with Nexans studying the use of green aluminium for power cables.
Finally, we got awarded a Miljøteknologi-ordning earlier this year, focusing on the operations and maintenance of an Ocean Sun system. It goes hand in hand with one of the Skattefunn projects, where we get part funding from Innovation Norway and part funding from Skattefunn. We are about to start up a new EU project under the Horizon umbrella called PERSEUS. It's focused on thin cell modules, and our part in this project will be to provide a demonstration platform for these modules. It's quite a small part. We're quite a small partner, but we're expecting about NOK 1 million in revenue from this or contribution. Finally, we have part of two research clusters. One, the SFI BLUES, has been ongoing for quite a few years, focusing on the hydrodynamics and how our membranes perform in the ocean. The second, recently started, FME Solar.
It's focusing on solar in Norway and has a lot of interesting partners led by IFE again, so very promising. Looking at the key financials for this quarter, we had a revenue of NOK 2.6 million, which relates to primarily the sale of membrane material to the Soneva project and pre-feasibility studies, where we delivered three pre-feasibility studies during the quarter. We also started a new one for delivery in Q4. The result ended at negative NOK 5 million, and the cash flow was about the same, largely driven by the results, which led us to a cash position of NOK 31.7 million at the quarter end, and this is still a solid position. We have cash going forward in 2025 and can execute on our plans with available cash, and with that, we open up for Q&A.
Well.
Well, any questions?
Let me see.
Okay. Yes, a few questions. First one, can you elaborate on the potential in Brazil following the demonstration system?
Yeah. Brazil is, of course, a big market for hydropower. There are lots of hydropower plants, a lot of big reservoirs. So all in all, it's a huge potential just because of that. But we have, together with our partner, Uapê, already been working on many different projects in Brazil. They're big. The reservoirs are big. So we're seeing Brazil as a huge opportunity for Ocean Sun. This is also because these reservoirs have big fluctuations in the water level between full reservoirs and empty reservoirs. So Ocean Sun is the ideal solution to handle this kind of environment.
Thank you. And a second question on the expansion potential for Magat.
Yeah, still, as Magat performs very well through typhoons and the production is good, and the collaboration with SN Power or SNAP is very good, we hope and believe that there will be an expansion coming up, as previously announced. The timing of that, of course, is difficult to say, but this is something that we're working towards.
Why choose your solution for a hydropower reservoir? What's unique with your solution?
There's several aspects. I think we touched upon a couple already. One is, of course, that we have a very competitive Capex. So the LCOE is low. We have a system that can handle the fluctuations in water level very well. But also, since our system, or since many reservoirs are long valleys that are filled with water, you kind of will often get long fetch so that the wind will carry some waves. And in many reservoirs, the waves will be so big that the pontoon-based or other systems will not handle it. So Ocean Sun is, without a doubt, the best solution for most reservoirs around the world.
Perfect. We have a final question. What are you looking for in the new CCO, and where can I apply?
Yeah. Well, I'm looking for a person who is, of course, a closer. It's going to be important with a good technical background, being able to deliver in the room a good presentation and understanding of our system, but also someone who can fit well into the new management team in Ocean Sun and be someone who can drive growth, drive sales, and also bring the company forward in a good way. And I think you can apply on FINN or LinkedIn or Kvant's homepages, so it should be easy to find.
Perfect. That was the last one. One more now. Are there any concerns by potential customers to buy from a small company with little cash?
Yeah, it's a good question. I think since we are a technology supplier, of course, that reduces the risk because we are not the end supplier or the turnkey supplier to the customer. However, I expect that most companies would like to buy from technology from companies also that have a longer horizon on their existence. So I guess in certain cases, that will be a consideration for our customers. But we currently have a very strong cash base, and we have a growing pipeline. So I think also most customers will see that there is good potential in Ocean Sun and that we will be around for a very long time.
And as we have mentioned before, the pivot point for Ocean Sun, the amount of megawatts that we need to go to reach break-even, turn positive, is not that big or that high, large. So potential customers coming to us with the larger projects will also understand this and see that with their project, they can also turn, we can also turn positive.
Definitely. So with the current pipeline, we're past break-even. So it's not the burn is limited, and the upside is huge for Ocean Sun. So we're in a good position. Well, then, thank you very much for your time. And I'm looking forward to the next presentation. Take care.