Good morning, everyone, and welcome to the fourth quarter presentation from our Ocean Sun office here at Fornebu, Norway. We are very proud of the front page of our quarter presentation this time. You can see that our last floating PV system, the 2 MW installation at the Banja Hydropower Dam in Albania. As many are aware of, there were some initial problems with this plant some time ago, but we are, and myself, very proud of the entire team in Ocean Sun that's accomplished this feat. We'll talk more about this system later on. Agenda for today is to, for new viewers, briefly go through the purpose of our company, the main business activities and developments last quarter.
Also we will be joined by my colleague, CFO Karl Lawenius, who will give a market update and the financial numbers. Purpose of Ocean Sun is to facilitate floating PV or Floating Photovoltaics , sometimes called. It is driven by the need for large surface area for the utility sized solar power plants, and to put this on water bodies, either on lakes, near shore ocean or reservoirs. The idea is then to not get into conflict with agriculture, urbanizations or recreational areas for people where the consumer or the of the power is located. We have a very special technical solution to solve this problem by using floating membranes and solar modules placed horizontally directly onto these elastic membranes.
We can build multiple of these rings in a global map, making large power plants. We claim that this is the best floating PV technology at the moment. Main advantages are that you can facilitate this with a very low capital expenditure and the lean use of materials going into these systems. They can also be built at a very high pace, important in the big solar farms, and not to mention the lean transportation. These membranes have the ability that we can pack and fold them together and place each of the membrane inside a 40-foot transportation container. On top of this, solar cells are very dependent on the cell temperature in the efficiency and the voltage across the cell.
By placing the modules on this thin membrane, we get a very strong heat dissipation to the water body, lowering the cell temperature, increasing the efficiency and the overall yield from the solar farm. So far, floating PV has only been mostly put on very benign waters. Our system, we have the ability to also cope with waves and near shore conditions on the ocean. Of course, increasing the potential for deployment of this type of system greatly. This is just some example of some numbers coming out of this from a FEED study. This is a so-called front end engineering design that was conducted for, in Europe for a large energy company. In this example, it's a 45 MW peak installed floating solar power system.
You can see on the bottom right, very dense packaging of these rings. We have a high energy density. In this study, we end up with an LCOE of $0.04 per kWh, which is a very favorable, attractive price of energy in Europe these days. It's possible to construct such a system within eight months. It consists then of 65 individual discs that are arranged in the way that you can see. Installation CapEx of about $0.60 per watt peak. Now to the more ongoing activities. Like I mentioned, the Banja Dam in Albania. This is a fantastic floating PV system.
Just to get the picture of the size of this, the surface deck on this system is about the same as the large aircraft carrier, Nimitz-class, so more than 16,000 sq m. Still covering only a very small fraction of the lake surface. Looking at this, of course, the potential is tremendous to expand with this type of technology. The overall system was built according to plan and budget. This one will produce in this location about 3 gWh annually.
It now serves as a showcase or, we have lots of researchers, students, and traveling now to these sites to learn about this new technology and also to monitor carefully and to document the output from such systems. Many visits by other new customers. In China, this is an ongoing. This is more on the borders of the capability of, probably, of this type of membrane solution. This is more or less open sea. In the Yellow Sea, it's a smaller 0.5 MW system that is being tested and developed further with the extended sea trials in the region. We also see active work on modification and improvements on the system necessary for these type of locations.
It is still in the plans of SPIC on this particular location for the 40 wind turbines to install altogether 20 MW peak of floating solar. There is an excess capacity in the transformers in these monopiles to accommodate such systems. Of course, the very great plans in China to build altogether 42 GW of offshore solar in this province in the upcoming years. This will be an very exciting development to follow. This year, it's the year of the rabbit in China. It's the water rabbit. We are very glad now that we have the ability to travel also. Parts of our team will soon be able to travel to China to follow up on this.
One of our legacy systems in the Philippines, this is the Magat Dam. It's a picture of our Southeast Asia president standing on... That is not a small guy. He is now demonstrating a little bit the ability to walk on the solar panels. Normally an unheard of activity on solar modules. We have the ability to due to the hydrostatic pressure on the backside, that there is minimal deflection in the solar modules. They conducted a large study to investigate the solar panels after three and a half years of operation to look for any degradation or micro cracking in the solar cells.
This is very promising results that among thousands or of solar cells were investigated by electroluminescence characterization, then no micro crack was found in any of the cells. This is a very good habitat for the solar module to sit on these membranes. We also have some recent developments in a so-called CBM system. This is a condition based maintenance system. We monitor each and every string on these floating platforms, we then can advise on the maintenance intervals and the more smart way to operate these systems. This is software that works on all platforms, handheld phones, tablets, et cetera, and very easy for the operators to locate any abnormality in the system.
We have the ability to travel directly with boat to each of these rings in large conglomerates. A few words on the most important upcoming projects. Of course, Singapore, floating solar in Singapore, very high on the agenda. All the advantages are present. There is a very high cost of land in Singapore. Much of the best rooftops are already taken, so the ability to put the solar systems near shore is. We think we are very well positioned to do this with our sea worthy floating PV systems. With Sunseap, a subsidiary of EDP, we have in the planning the 1.2 MW near shore system in the well, it's in the Straits of Singapore. We hope to start construction later this year.
Also with Keppel, a very well-known institution in Singapore, we have the 1.5 MW demonstration system close to the Jurong Island. Also worth mentioning, the Sunneng, there is a 1 MW peak demonstration in the planning. Our friends in Greece, MP Quantum, with, of course, Greece, very well-suited with its large water bodies and the multiple islands. We look at upcoming demo system there. Two times 2 MW that will pave the way for a much larger utility sized systems later on. MP Quantum has also awarded us the license for this contract already, even if construction has not yet started. I hope to progress that in not distant future.
I think that was a brief update on this, and now I will let our Chief Financial Officer, Karl Lawenius, speak a little bit about the future markets and also the financial numbers. If we change place.
Thank you, Børge. Hello, everybody. To start up this session on the markets and the financials, I will start by recapping some of the numbers and the fundamentals for floating solar. To reach the climate goals, it's estimated that we need to build 5,000 GW of solar energy, the space of land that that would require is equal to approximately 14-15 million football pitches. This is a huge amount of land, which is hard to come by in densely populated areas where the power is consumed and needed without conflict with urbanization, agriculture, forestry, or any other. It's becoming an increasing challenge for these developers to find suitable land, they are also struggling with fierce competition for the land slots that are given.
That's why people look to water, where you have abundant of space and also a lot of synergies with, for example, hydropower. Going more into detail on the markets we operate in. In Europe, we are now starting, have been a bit sluggish and falling back a bit compared to Asian market, but interest is now picking up. We are seeing more tenders coming out, and we are also seeing increased push towards floating solar from the European Commission, with the research grants coming up for the topic. We see that this confirms the interest that we have from different players in Europe, both developers and IPPs, and also large oil, typical oil companies, venturing into renewables.
In Southeast Asia, the interest is very high, especially in Singapore, Philippines, and the region around. We also now see a large interest for the island communities, where you have perhaps the only potential to replace the diesel-driven generators by producing local and nearshore floating solar. This is very beneficial, both in terms of price of electricity, but also in terms of having a green profile on these tourist islands. China is still the largest market and is also the market that has the largest plans going forward. As mentioned earlier, they have shifted focus more towards nearshore and offshore, which suits Ocean Sun very well, as we have a unique position to be able to deliver cost-effective systems for this application.
We also see that we have this SPIC project ended up in the news in China, the national news. This has spurred a lot of interest in our system. We have a lot of interesting things coming up. Finally, Americas is progressing well with a lot of interest. We're working closely with a partner there for developing short-term, some mid-sized, small mid-sized demonstrator system of 5 MW-10 MW. Later on, larger systems. On the financials for the year 2022, we see that we ended up with a revenue of NOK 10.4 million, a significant increase from 2021. Very positive that we have more project-related revenue.
We had a deficit of NOK 17.8 million, which is slightly below what we had in 2021, and we see a good trend here. The net cash flow from in the fourth quarter last year was NOK 5.6 million, primarily related to negative results. We had a cash balance of almost NOK 63 million going out of the year. We are very well positioned with a solid base to continue our operations going forward and to execute on our plans. Thanks a lot. We open up for questions.
Any questions for Ocean Sun fourth quarter presentation today?
Yes. Yes. Some coming in. First was, if the production in Albania is according to expectations?
Yeah. Yes. This is running very nicely.
You say that the installation speed has improved significantly. How long does it take to deploy one ring now compared to older, previous installations?
Yeah. This is, now each of the process steps are broken down into different tasks, so is in a high volume setup, it is now possible and, seems, although not fully documented, but, it seems possible to deploy, one of these rings per day in a high volume setup.
Then we have, are you partaking in any tenders currently?
Ocean Sun does not directly, is not an EPC or developer as such, but we collaborate with other EPCs or developers in tenders.
The project in, or the example you mentioned from Italy, is that from a real project, or is it just theoretically?
This is a FEED study. We hope, of course, it will become real. Yeah.
One question about the panels. Based on your test results, is your panels producing better or operating better than a normal ground mount PV panel?
Yes, in general. It's a rather complex question. It also has to do with latitude and the inclination of the solar panel and the astronomical position of the sun. In the lower latitudes, where the sun is relatively high, there is a distinct advantage with this type of system, and also in warm ambient temperatures is also a big advantage. Like we have studied in the Philippines, for instance, and this is also documented by researchers in scientific journal papers that documents this effect. It's very much a function of water temperature. It can also be influenced by the current in the water. In most interesting location, this is a strong advantage, up to 10%, even 15% yield increase.
Any cooperation with the universities?
Yes, this we have done for many years in Ocean Sun, with particularly with the Norwegian University of Science and Technology in Trondheim, Norway. Many of our employees have been doing their master thesis, et cetera. We also collaborate with SINTEF Ocean, in particular on the hydrodynamic part of this, and on the photovoltaic or electrical side of it, we do a lot of collaboration with the Institute for Energy Technology in Norway, but also others. This now outside the Ocean Sun, this engage a high number of researchers and students at the moment.
Do you see any projects in the pipeline located in Norway or in the Nordics?
Yes, we started out in Norway, on west coast Norway, because you have the diesel-driven feeding barges in the aquaculture industry. There is a local market there in Norway to replace some of that diesel consumption with the floating solar. We were perhaps a little bit early on this, but it's something that hopefully will progress a little bit and that the Directorate of Fisheries and Norwegian authorities will allow this type of system to sit next to the feeding barges. At the moment, there is a quite strict regulation on the permits for the aquaculture industry and not, these borders are not easily changed, so, but hopefully there will be new legislation on the area and opening up for floating solar also in this market.
Of course, not only in Norway, but you have a lot of aquaculture industry in Scotland and Chile and yeah, Tasmania and elsewhere, where this can be a nice technical solution.
Børge, you mentioned, or you described the status of the project in China, but we have a question, so perhaps you can just recap a little bit on the status there.
This is ongoing development R&D activity with our client, SPIC. Like I mentioned, we will have a team traveling there soon.
We have a question, when do you expect HOPE to have secured a large scale/utility scale contract?
Yeah, this can, this can happen any moment. Of course, now we are in a situation where we have several large companies that either plan or already are looking at these demonstration systems, and to go in detail on this and, I think this is a matter of time before financial investment decisions are taken for larger systems.
Very good. I think that was the last question. I would like to thank everyone for listening in on the fourth quarter presentation. We will meet again in the next quarter. Thank you.