Good morning, everyone. Thank you for listening in to the Q3 presentation. This is live broadcast from Ocean Sun at Fornebu. A beautiful illustration on the first slide here from our latest project in China. We'll also have guests today from our head of China and Northeast Asia operations, Mr. Kristian Tørvold, and also our financial officer, Mr. Karl Lawenius, to talk about the market and the financials. Without further ado, we can flip our slides. As always, a short introduction of the company and our business, and then on the ongoing projects that we have. As mentioned, a special update from Ocean Sun China, and the more general market outlook given by Karl Lawenius and as well as the financial situation in the company.
For new shareholders and we are in the market of floating PV. Background for this is the access to the large surface areas needed for utility PV power plants. In this market, Ocean Sun has a special patented solution where we deploy these large floating membranes on top of the water, where we place the solar modules directly on the membrane and achieve multiple benefits with the cooling of the PV device and also a low wind drag and other advantages, and a very speedy installation with a low capital expenditure to build this now, these days, resulting in a very favorable LCOE or cost of energy.
Today, there is an extensive pipeline, almost globally, and the way we operate is a scalable and asset-light business model where we offer developers and independent power producers this technology and assist them in constructing their systems. The company consists today of 15 employees, all very committed to this activity. Largest project in Ocean Sun is the 2 MW peak project on the Banja Hydropower Reservoir in Albania, where the first 0.5 MW ring or floater has been operational since the first of April. Steady good output from that unit. We are in the process together with Statkraft and EPC company, DNV, to finalize the next 3 rings. We are quite confident that this will be completed this year, the overall 2 MW system.
It's a very nice showcase for Ocean Sun. We have visitors coming, and we are very pleased that Statkraft allow us to have others to see this system and also from the R&D community that are studying the floating solar systems. It is a very good demonstrator. For south of Europe, also meeting with governments and large energy companies that are looking into these possibilities to deploy more of the floating PV and to generate more affordable, renewable energy in the region. This one also very important. It's our, I would say, oldest system, maybe at least at this scale, located in the north of the Philippines on the Luzon Island. Was commissioned back in June 2019.
It's 3.5 years old now. Doing some modifications and exploring some developments on the PV module there now, and we are taking some of the products back for analysis in the laboratories to see to look for any degradation mechanisms on these solar panels. So far, this is looking very promising, and we are confident that these floating membranes is a very good habitat for the PV module when it comes to thermal stability and also the mechanical loads acting on the system. At the moment, as we speak, there is a large group or a group of researcher visiting the facility and looking at the different technical aspects of the system. We hope, of course, someday that this will be expanded, as indicated several times by SN Power, the owner and operator of the system.
Serving as a good showcase for the Philippines is a very promising market with its many islands and large water surfaces where you don't want to do deforestation or to get into conflict with agriculture or farmable land. When it comes to the more upcoming projects in the near future that have been contracted, we have first up, perhaps it will be in Singapore with Sunseap. It's the 1.2 MW system nearshore or in the Singapore Strait. The full hydrodynamic analysis has been performed, and the preparations for the project is more or less finalized. We hope that construction will take place in the second half of next year.
In Singapore, the deal with the Keppel Infrastructure, where the system is intended to be located nearshore to the Jurong Island and for a total of 1.5 megawatts. These will, of course, serve as very powerful demonstrators for this region, showing the potential for floating solar as a very important source of renewable energy for Singapore. I think also, perhaps my colleague, Kristian Tørvold, will touch upon this, but continued activity in China, shortly next year, early next year with Sunneng and String Capital out of Beijing to build a nearshore 1 megawatt system in province of Shandong.
Also, good indications, I would say, from the south of Europe and the legislation for floating PV there, where we hope that the permitting process in Greece and our contract with MP Quantum in Greece can start to be realized. We start out with the 2 by 2 megawatt peak demonstrator system, where the plants are, of course, much larger in the end. The license fee for that one is also being honored while we are waiting for the physical permitting process. I also urge everyone to look up our Q3 report in more detail that has been distributed and can be downloaded from our web pages.
Now I will wish to leave the word to the head of our China and Northeast Asia office, Mr. Kristian Tørvold, for the main event today, the developments in China. Please, Kristian.
Thank you very much, Børge. First of all, I thank you for seeing me here. I very excited about the developments in China. I think we'll start out with a video to show what we've built. Today we have the first offshore floating solar system that's connected to the grid. The world's first offshore wind and solar hybrid installation. It's a half megawatt, two floaters that we've put out there. Also there's a lot of world's first and world's biggest, but it's together with SPIC, which is the world's biggest PV owner and investor. The project was signed the contract back in June and has been very quickly moving forward since then.
We've been working with Sunneng, which has been the EPC that we've been working also with for the EPC project that has been in the loop much longer. Utilizing a lot of the know-how and sort of the work we actually put into that project. Seeing that SPIC is the world's biggest PV investors, this was important for us to do quickly and do well. We started out on the beach of Haiyang. We first constructed the rings, pulled out the membranes, then we moved the rings over to a local wharf, fishing wharf, where we installed the modules. Then we pulled the rings 30 km offshore. Took 9 hours, and it was a beautiful sunny day without any wind.
It was very lucky and good timing for installation. Once arriving at the site, it was moored in our specialized designed mooring structure. We connected it to the wind turbine that has its own transformer, and therefore we use the existing infrastructure and connect directly to the grid, then the subsea cable to shore that way. It's a very efficient way to build floating solar, especially offshore floating solar. As you see from the picture and also from the video, there's a lot of wind turbines out there. This one site has 40 turbines.
The plan is, once this first pilot has been successfully proven and been through a few winter storms and some waves, we will build then half a megawatt to each turbine at this wind power plant. This is, of course, one of many wind power plants in the region. We see, like you say, in the last point here, there's a lot of opportunity in China. These numbers like 42 gigawatts sounds like a lot. China accounts for 40% of the world's capacity growth, more than 40% in PV, more than Europe and U.S. put together. It's constructed more offshore wind in 2021 than the rest of the world put together in the last 5 years.
Their investments in renewable energy is immense. The need for combining solar and wind has been huge because land area is reduced, and they have a lot of these areas for offshore wind that are not used for shipping traffic and et cetera. There's a lot of available space for us. They've been hoping and waiting for a solution. Luckily, we won that race, and I see our solution and also our business model is very well suited for the market since they have the strongest EPCs, and they have the whole supply chain locally. All in all, very excited about the project. I strongly believe it's gonna build and bring good opportunities for Ocean Sun in China. Of course, this project has received a lot of publicity. In China, it has been featured in every news outlet for renewable energy and energy in general, but also on the national CCTV-2 and other larger public applications and platforms. This is, yeah, been well-received, and all in all, very excited.
That's awesome. Well, thank you for that, Kristian. It's very delightful to see that a small company from Norway can help and reduce the global energy or the global greenhouse emissions. It's very effective to build this in China to directly replace the coal power plants building there. Now we'll go further with a more general update on the market. First of all, I just wanna stop at what we have achieved so far. As you see on the left here, we now have contracts or projects ongoing or upcoming with a lot of the largest developers in their respective space. SPIC, as Kristian mentioned, the world's largest PV asset owner. We have Statkraft, one of Europe's largest renewable energy company. Sunseap in Singapore, owned by EDP, is also one of the largest developers in Southeast Asia.
Keppel is a local powerhouse in Singapore with activities on all of Southeast Asia. In addition then to SN Aboitiz on the Philippines, which is a joint venture between Scatec, as you perhaps all know, and a local strong company there, AboitizPower. This is very promising for the future, both in terms of projects with these customers, but also as it gives us a very good credibility in the market. Looking quickly at our market, starting with EMEA, Europe and Middle East and Africa, we now see more activity and more actions behind the words of renewable energy in Europe. Tenders are starting to come out, and activity is picking up. As Børge mentioned as well, Greece can hopefully soon be ready with the permits to construct the first system there.
This is, of course, very delightful. We also see a lot of activity in the Middle East. The potential is vast, and they want to contribute to the increase in renewables. In Southeast Asia, we have good standings. A lot of the systems there will be built nearshore or in regions where there are a lot of winds and typhoons. This is a very good match for our system, as it's better than our competitors to handle these conditions. China, Kristian was into that, a hugely promising market that we have a good momentum in. Finally, in the Americas, we still see most potential in Brazil.
You have a lot of movement on the distributed grid, where both developers and power consuming businesses are eyeing opportunities and moving forward with projects on with floating solar. We hope, as we have communicated before, that during 2023 we can start to execute on smaller utility scale projects in this market. For the financials, we see that we during the Q3 continue the good growth trends in revenue that we have had so far this year. In total now, year to date, is NOK 7.6 million in revenue. Significant uplift from 2022. Despite that we are still burning more than we earn, of course, and had a net loss of NOK 13.5 million in year to date. The cash flow effect in Q3 was actually positive as we had some repayments on material purchased for the Statkraft project. We end up with a cash position of NOK 68.4 million at the end of the quarter, which is very solid. It positions us well for our plans going forward and very nice that we have a strong cash balance and a solid cash position in this capital market. We have the funds that we need for going forward now. Børge, Q&A.
Yes, thank you, Karl. That was reassuring numbers and the positive market outlook also. Do we have questions for today's presentation?
Yes, they are rolling in here. The first question is, "Hi, what's the depth where the two floaters in China are moored?
That is a good question. The water depth, of course, influences the cost of the entire mooring system and such. This is a so-called 30-30 activity, where it's 30 km out from the shoreline and the water depth is 30 m. These are connected to the monopile pipe wind turbines that are secured to the sea floor.
Very good. Next question, "No leads in U.S. or Norway?
Several leads, I would say, in the US now. Early stage of course, but these systems are equally suitable of course for the US and you can see for instance in California where you have the arid or the drought seasons, these membranes prevent the evaporation of water, so you have this combined effect. Hopefully we will see a project there soon.
Very good. We have one regarding the Magat system. With the new panels, do you see an uplift in the production and the stability of the system?
Each year we have improvements on the cell efficiencies. I think old version there is you have almost 20% increase in the performance of, nominally, of the solar panels itself and also modifications to where these junction boxes and electronics are organized on the panel. Great improvements on that.
Another market question, I guess. Do you participate in conferences and industry forums?
Yes, we do that to a large extent. I would say, almost, yeah, at least bi-weekly, we attend industry conferences and also high-level meetings to discuss the advent of floating PV different markets.
Very good. Let me see here. I think you answered it a little bit, Kristian. Do you see a lot of attention in China due to the project with SPIC?
Yes, I think as Kristian mentioned, this is almost, I would say, viral news in China news media and, of course, drawing a lot of attention. Others see also the potential or the opportunity to build these type of systems. We hope this will expand rapidly.
One question, what is the LCOE of your systems?
That is the crucial question when it comes to this type of system. It varies. It depends on the irradiation. As we know, the solar irradiation differs around the globe. In good locations, you can produce power at a very low cost, or levelized cost of energy. In the south of Europe, for instance, you may be looking at 4, maybe 3, cents, or let's say 30-40 EUR per MWh. This is, of course, a very attractive and very affordable source of energy production.
Yeah. I cannot see any more questions. I think that was a good conclusion of the session.
Yeah. In that case, I wish to thank all viewers for listening in to the Q3 presentation, and please also take a look at our written report downloadable at oceansun.no. Thank you.