Okay, let's get started. Very welcome to this quarterly report, quarter two, 2022. Carl-Johan Linér, CEO of the company, and by my side here, I have Harald Bauer, CFO.
Good morning, everyone.
Hope that everyone have had a nice summer period with, as we say in SaltX, charging the batteries in a good way. We have prepared a small presentation, about 20-25 slides here and we'll go through. It's going to be some repetition maybe for some of you, but we are very happy to see that the number of investors and owners is increasing every day more or less.
Only in Avanza, we have more than 18,000 owners today, which is very good to see. During the presentation, you are allowed to put questions to us in the chat, and we will try to answer them as much as possible. We will make sure that you get this. You can also. We will also record this presentation, so you can listen to it more than, you know, once.
With regards to the number of press releases that we have sent out in the second quarter, we know that it has created a lot of interest and I can see it and I can feel it also in the number of questions that we get from the investors and some other people also, and some from potential partners. We have always been quite interesting because we are in the right niche, so to say, from the environmental point of view. But today we are, I would like to say, we are even more interested from that respect. You can see that from the number of shares that are trading on a daily basis on the stock market.
I don't make any comments about the value of the company. I normally don't do that. I will not do it this way either, but I can clearly see that there is a trend that it's an increasing number of shares that are selling, they are selling and buying. So that's good. We are very enthusiastic about that and we think that we have just seen the beginning of it. Before we get into the presentation, I would like to make some small reflection and comments about the history and where we have been and where we are.
I would like to say thanks to the strategy that we took some years ago to get away from only the chemical process with the material to look more into the functional solution of charging and discharging. We are now in another position. We're looking for partners, and we've been talking to, you know them, Sumitomo SHI FW, Calix, Actia, you name them. We have had a number of contacts with them, but to be honest, they did not really met our requirements of scalability and fast charging and so on.
So by a lot of fighting spirit and a lot of competence and know-how in the company, we are where we are today, as you probably know, with the Electric Arc Calciner, a plasma burner that is actually a very, very efficient and it's very usable in storage application, but also in on the industry electrification. We are in extremely even more interesting and exciting position today than we have been in the past. We know that we can do this. We don't know exactly how and what our functional role will be in the future, but we have proven that we can do it and we know how to make the calcination process in a very optimal way.
And last but not least, as a sign of this competence and as a sign of the results that we have done during several weeks of testing and analyzing the results, the company SMA Mineral has decided at the very end of the second quarter to invest in a direct issue with us of buying 15% of our company, which gave us SEK 73 million in our balance sheet extra. We are very, very happy for, of course, not only the money itself, but it's an industrial partner that are sitting with existing customers and are sitting with existing fundings on a mining site, which will make us a very, very good complement to each other.
SMA Mineral wants to have an electrification of the process, and we want to be part of the customer and all of this. [Audio inaudible] I'm very optimistic about the future, and we have a good. So far, we have very good cooperation with SMA, and they are also a part of our board since yesterday, as a matter of fact. So I'm looking forward to that. It's gonna be a very exciting time, next time here.
Getting into the presentation a little bit then, we have two missions, and the first one is to make the unplannable plannable. What do we mean by that?
Well, reflection I had from yesterday or the day before yesterday in the politicians' discussions. You know that we have an election period coming up in Sweden in the beginning of next month. We have every fourth year we have an election. The political leaders are talking about the plannable energy quite a lot now, I must say. What they mean by that is, of course, the nuclear power source. There are hardly anyone that talks about how to make the not plannable energy sources plannable. That is our core competence when it comes to the EnerStore, and that's where we make it possible.
We are an enabler to make the sun and the wind plannable due to our storage facilities. We are not there yet. I think that the solution or nuclear power and that might be part of the solution, but I think we should fight, and we are doing that as much as we can, fight more for the usage of storage, energy storage in combination with sun and wind. I think I mentioned this in my letter in the report also. I can also say that it's been a very interesting time in Almedalen on Gotland, which is the political week that started up now after the corona again, with a lot of interest in our solution and so on.
So make the unplannable plannable, that's the energy storage thing. The second one is the electrification of the largest emitting industry worldwide.
It's really interesting to sit on both legs, sit on both chairs here and see what we can do and make it, make this possible. Looking on our company, it's a Swedish company, as you know, and we have done a lot of things around the world. We have had, and we still have the three blocks to the left as leading stars in our development. We want to have a scalable technology. We want to partner up with the most important and the best key technical partners that we could see.
We have this unique storage solution we are working with. What is new really is a unique electrification innovation that is addition on top of this. That makes we have a possibility to do a very efficient energy storage solution, but we have also a possibility to do the electrification technology possible to do the transition. This page is it's a simple picture, but it's very important that we all understand this, that we developed this Electric Arc Calciner with the purpose of making a more powerful energy storage solution. That we certainly managed because we are getting up to very high temperature very quickly due to this plasma burner.
We go up to 1,400 degrees Celsius, and that by that we can charge the battery and the material very fast. As an addition of this, we found out that we could also use this innovation for electrification of the calcination industry. Looking into the quicklime industry, looking into the cement industry, we have then made this innovation that is the patent is pending, and we think that we will know the result of the patent pretty soon. The patent is a patent. I should say that also because we get a lot of questions about the patent. The patent is a patent. The most important thing is speed.
We are in the front here, and we are the first on the market, and with a good cooperation with SMA, I think we have all the possibilities in the world to be first on the market. We are talking to a lot of other potential partners, but the feeling we get sometimes is that they just want to look on our technical solution, and then they say thank you for the coffee, and then they go home and make something by themselves. We are not interested in that in the long game. We want to go ahead with our true partners, the honest partners that we have, and SMA is certainly one of them since they have invested in our company. Very interesting.
The milestones that we do have, the one of you that been around for a while, you know very well about this. The new things is actually the two second blocks here, development of EnerStore for industry. That is, the reason for this is actually that the plasma burner and the EAC Electric Arc Calciner is very suitable for this because it's so quick, and we can put it off and we can put it on in a very short time, and when we heat up the material in a very quick way and by that creating the steam that is used for in the production. So EnerStore for industry, we are replacing the oil burner with an oil tank beside it.
It's almost as quick temperature rise as EAC as the oil burner. The second one is the electrification, and that's the new thing that we are planning for these calcination projects and the pilots. It's a very interesting thing. Coming back to the press releases, I put two slides in front of us now, three of them covering SaltX's electrification, and three of them covering SaltX's energy storage. During my time as CEO of this company, we have never, ever had so many press releases in one quarter.
It might be a coincidence, I don't know, but it shows that we have worked hard for the development, and we have all the time, and we still believe in what we are doing, and we see that there is a huge demand from the market in those verifications. The electrification, little bit higher demand right now, but when it comes to the energy storage, I think the demand will come, but it takes a little bit more time. Nevertheless, the three press releases in electrification is that, SaltX and SMA find a partnership and means that we can support SMA in electrifying the Calcination Process. Well, I'll come back, tell you a bit more about SMA later on.
The second one is that we made a press release once we had verified the results, and we didn't do that by ourselves. It was actually a third party that verified the quicklime results, and it came out with a very good. We are confident that we can do this solution here. The third press release was regarding green cement, and it's almost the same process as it is with a calcination for the quicklime industry. It's slightly higher temperature, slightly higher, it's another sintering process afterwards, the calcination that we need to take care about. But we can do that. We have ongoing discussions with different partners, and we're looking into various solutions here also.
When it comes to energy storage, we have had three press releases. One of them is covering the cooperation with Alfa Laval. They are supporting us with their competence and their know-how about how to make this Bollmora and energy storage even more efficient by preheating, using the sort of the waste heat that we have in some processes, use that waste heat to preheat the incoming material, by doing that, we are getting more efficient. They are actually going to install the first prototype within next month in September, and in Bollmora. That's the beauty by having Bollmora so close to us that we can do this. We will see about the results, of course, but that will be very interesting to follow.
The second one is regarding our cooperation with Nord Energi. It's been well, we are at the end of this prep study, as we call it. They were very interested in our results from Helsinki Energy Challenge, as we were one of the winners in that competition. Honestly, we don't know anything about their decision about some investments or not. We have supported them with the prep study and we will write a final report now within a few weeks' time. I can't say anything about when, if and how they will take decisions about this. We know that they have a demand, they have a need for some sort of storage solutions. The third one is actually in Ludvika.
The amount of you that been around for a long time know that we have had ongoing discussions with the steel producer up there. They are also converting. They are changing the focus into this green steel production in HYBRIT. We follow them now. We decided to follow them into that and support them with some sort of quicklime production of Calcium Oxide into the HYBRIT solution. The solution we had for a couple of years ago, I think it is at least 1.5 years ago, was more related to waste gas, and the waste gas will not exist any longer when it comes to the HYBRIT production. So it means that we are following them.
It takes a new direction, as we say in the headlines here, but we think it's very important to follow the latest technology and the latest trend, because that will also put SaltX in a good position in the long run. All in all, six press releases in one quarter, record so far during my time at least. Energy storage, I talked about this renewable energy on demand, which is if you think about it, a very clear message that we can use the renewable energy when we want it. Sometimes as you know, it's blowing very much and the sun is shining, and et cetera, et cetera. That's the time when we will charge a battery and when we don't have any sun, when we have the clouds instead, we will use the battery.
So it is an alternative to the nuclear power source also, or a complement, I should say maybe. I think honestly we need both of them. The politicians are more interested in the renewable energy. They talk only about the renewable energy, as I said. I'm not a politician, so I will not get into that argumentation. The two different solutions that we have in our energy storage product is actually that the district energy, that's the application where we are storing the energy longer than seven, eight days, as I should say. The short-term, the highest demand is actually on the energy storage for industry, where we are replacing the oil burner, as I said earlier, where we are using.
We don't store the energy for such a long time. It could be up to 3-4 days maybe, but maybe you could only store it on a daily basis. That's a sort of simplified solution from the district energy solution, which we have a close connection with some customers today, and we hope that we will secure some reference installation here in the near future. Again, we never know about this. It takes time. The milestones for Bollmora since September 2020, we started with discharging installation, so that one was the uncertain partner. We went into discharge installation, uncertain as a partner, and we made some upgrades from the controlling PLC system and so on, first quarter this year.
Today we are in a position where we have a third-party company that is verifying our technology. They are looking into all our processes. They are looking into what we have done, how robust is our quality, and so on. We believe. Well, we know that we will have the result at most likely the end of Q4 this year. It's taken a little bit longer time, I know that, than we planned. This third-party verifier makes it very accurate and very into the details also. It's on its way to be able to come up with the results at the end of this year. Electrification.
We first, you probably know about this, that the quicklime and the cement industry is one of the heaviest emitters, no doubt about it. It's 8% of the total worldwide emission that belongs to this sort of two segments. If you should turn the 8% emission to a country, it would be the country number three in the world, top three country that will emit the most of global CO2. The market is huge. The quicklime market is 400 million tons, and the market of the cement is 4,500 million tons.
As I said, we will be happy with a small amount of market share, with, together with partners to supply the green quicklime, the green calcium feed, but also the green cement. Huge interest, that's a market that exists today as we speak. They want to have a green solution today.
What have we done then? Actually the picture you see there is from our test bay in the middle of Sweden that we have had since September, October last year. We have done batches of production in those things in four or five different weeks' time. We have made tests in various temperatures.
We have made tests of various material, and we have a lot of samples today of material in our office here, so of course, at the moment, but what we have proven is that we have proven the technology, the process itself, and this was done on a 250 kW power size. And it's really where we have gone from the drawing board into the reality. We built this installation in a very short time. We tested it, and we have had lots of interest from various third parties that have been up there and visiting us also. The milestones for electrification is actually the basic idea was end of beginning of last year, 2021, end of 2020 maybe.
The basic principle is quite old, and it has—it's come from the two founders, Göran Bolin and Corey Blackman, that you will find an article about in the quarterly report, a more personal related article, and that will describe this. This is what we have done search a patent for. We built it April 2021, we tested it October 2021, and the results came out in January for limestone, but the results came out at the end of Q2 regarding the Portland cement issue. A lot of discussions and a lot of results, good results have come out of that one. So today, we are in a process of finding the right partners.
I think we have found the right partner for the limestone, SMA, but we need to continue with that to the Portland cement also. It goes without saying that it's a pretty conservative market, and we need to convince the customers not only one time, several times, but the only way to convince them is to show the results, to show the production, to show the hands-on features. SMA is, as it maybe I've seen, a family-owned company in third generation. It's in another country, it's one of the leading lime producers. It has 65% of the market share in the steel industry, a little bit less in the pulp and paper industry.
It's a major player, about SEK 1 billion in turnover, and it's quite a spread out company in various geographical positions. The head office is in the municipality of Filipstad in the middle of Värmland in Sweden. We are together with them now planning for various projects and pilots, and we hope to come back to you about that later on this year. The direction that we do have, that we see in front of us without giving any timelines, anything like that, is that we have done the picture you show was the 300 kV pilot. We have done that. We have a lot of material, we have a lot of know-how and experience out of that.
The next step will be to build a 2 MW size of demo in the near future, where we will be able to optimize the solution and to make a robust solution that will be a demo installation that will be fully, most likely, fully controlled and owned by us. We will go into the commercial size pretty quickly into the 8 MW sizes. 8 MW size is the maximum load that we are able to build. If we want 16 MW, we make two 8 MWs consequently. That's not an issue. The 8 MW installation will produce 40,000 tons. That's quite a lot for the steel company.
That's where we are heading at. Harald, would you like to say a few words about the financials, please?
Yes, I will. I have two comments. One, of course, is like the directed share issue we did in the beginning of the summer, which gave us SEK 73 million, and we were very pleased with that in a rather difficult market. It's improved slightly now in the fall, but that gave us a comforting situation going forward. We then obtained a new shareholder that we are also cooperating with, as Carl-Johan has described. The second comment is with regards to our operating result and comparing the different periods, both Q2 as well as the accumulated numbers, you can see that the operating result has deteriorated, and that merits two comments. One, how varying is our costs?
That we have with the infrastructure, the number of people employed on what we do is rather stable, and the reason why costs vary are related to the different projects that we run. In the past year, it was primarily the investment in Bollmora, and in the current year, in the spring, primarily in the first quarter, but some also in the second quarter, the costs were related to our EAC development. So that can cause the costs and thereby the result to vary. Another more important issue why the result is varying is how much of the costs, the development expenses that we are capitalizing, that is putting them on the balance sheet and let them create a reduced loss, of course, because we have a positive impact in the P&L.
During the time of the Bollmora of last year, we capitalized those expenses, put them on the balance sheet. For the EAC development during the current year, we've decided that did not merit to be capitalized because it was more in an early stage. Going forward, the future investments will most likely be capitalized. Those were the reasons for why the operating result is varying. It's more of a financial issue than us spending more money. With that, I hand over to you and responding with the summary.
Just a final try here to make a summary. If you haven't touched the message, I mean, we know that the storage and energy storage technology is really maturing. It happens pretty fast, but still the market is not really there. We are since more almost a year ago now, we have participated in the Long Duration Energy Storage Council, LDES, with hundreds, 250 companies, and they're still comparing and discussions about where and how to use the storage application and so on. I'm totally convinced that there is a need for it, but the market is not there yet. But it will come.
Some takeaway from this discussion is that the EAC is actually making it possible to make the storage solution even more efficient. Alfa Laval also of course contributing here, but EAC is probably the most important thing to make it even more efficient. The market for quicklime, as for cement, as I think I said a couple of times already, first of all, the demand is huge. It's as astronomical, and the demand is here right now, so to speak, which makes it possible for us to come to a commercial situation. I say I shouldn't say tomorrow, but I think it's likely that the commercialization will be quicker than any storage solution.
Okay, next slide. Next slide.
That's the last question. That's the last slide. Now it's the questions.
Yes.
At your time.
We note that there are hardly any questions, and we had a great number of questions in the Swedish version. We were not even able to go through them all. We then understand that there are no questions in the English version here, that possibly our presentation came across both in the Swedish presentation as well as then this one was better understood. You of course welcome to send us emails or contact us if anything is unclear.
Yeah. [Crosstalk]
That you have questions on our business.
Yeah.
With that.
Thank you very much for interest and keep in touch as we say.
Thank you. Bye bye.
Bye bye.