Good morning, everybody, and welcome to SaltX Technology holding interim report quarter three, 2021. Carl-Johan Linér, CEO of the company. Together, I have on my side here, Harald Bauer, the CFO. Good morning. We have the pleasure now to give you the presentation of what we have done during quarter three.
Before we go into that, I would just like to mention that you all fully know about, of course, what's going on in Glasgow, the top level meeting with the climate discussions with more than 21,000 people participating in more than 200 countries. What they are talking about, as you probably know also, is that they are going to talk about how are we going to achieve the agreement from Paris 2015 with the global heating of lower than two degrees or 1.5 preferable.
That is certainly a critical thing to talk about and actually to come to some actions also. The present situation as we do have when it comes to the global heating is actually more than 2.7 degrees, which is very scary and very bad. You know, we need to change that in a good way and make it possible to come to a fossil-free solution with the energy situation in the world. Having said that, we also realize and hope that you also, as investors, realize that we are on the right arena, so to say. Every day that we pass by, the increase increases the demand and interest of energy storages.
In one way or another, not necessarily only thermochemical storages as we are doing, but all other possible solutions also. Because the expertise and everyone says that if we are going to a fossil-free situation, we need around 20% in energy storage as a backup because of the fluctuation changes of the wind and sun.
That is just having said that, we're not going to spend more time into that one, but we feel really that we will. We will be able to support the transition to a fossil-free situation. They also said that what Greta was talking about four years ago is what they are talking about today. Also, I heard another comment that India have also made a commitment.
They're going to be fossil-free by 2070. Before, they haven't said anything, but now they have said 2000. It's 50-year, Harald. That's quite a long time. The one who leaves will see. Yeah, right. SaltX Technology is a company that develop energy storage solutions based on our worldwide patent groundbreaking technology, which is the nanocoated salt.
That is really what we are building our competence on step by step and making it possible to come to this fossil-free situation. What is very important then is that we are looking into scalable technologies, that we look into technologies that it's possible to scale up to megawatt sizes. To be able to do that, we need key technical partners that we work hand-in-hand with.
Today, I'm very pleased to say that I think we have that. We are working close with Calix, an Australian company for the charging reactor, and Cementa och Foster Wheeler with the discharging reactor. Later on, you will also hear that described a little bit more about we have signed a partnership agreement with ABB to be able to control the process in various ways, which is very important, of course, to control the battery. Our activities are certainly supporting the UN and all different targets with the climate actions and various sustainable cities and communities targets. The latest from SaltX is that we have spent a big portion of our time and efforts into the Stockholm pilot plant in Q3.
Step by step, we started with a discharging reactor with Cementa and Foster Wheeler. We've done the design, construction, built the design on various parameters from our laboratory. We have created a new sort of fluidized bed solution that makes this possible. Later on, as phase two, we have designed a solution with Calix, which is based on a falling bed technology. It's a 20-m-high reactor that are heating up the salt. As the second phase is, as I mentioned, the ABB Corporation. The ABB Corporation may seem that it's only the control system and the PLC system and so on.
Once you start with those type of partnerships, you can also see that we have a lot of other things in common, like our values and the mission of electrified industrial, not polluting the world too much. There is a lot of other possible corporations. Beside that, I can also say that we are talking of course with other possible partners in the future. Looking on what we have done then, our milestones, we actually started 2013, but you can say that from 2019 in April, we opened up the Berlin plant at Vattenfall premises. 0.5 MW size of charging and discharging reactor, 10 MWh in capacity. That was based on a spiral solution in reactors.
We found out that to be able to scale this up, we needed to change the technology. The plans was actually that we should change the discharging reactor to a fluidized bed in Berlin. The corona came along and the plant, the total industrial plant was closed down. We decided that we should go for an own solution here in Stockholm. So we did, and we are now at the very end of the mechanical installation of this pilot. We hope that we will be able to start the test in best case at the end of this year, but more likely in the beginning of next year, and to be able to show you and present the results in near time.
Also, we've done the Helsinki Energy Challenge competition, and we were one of the four winners in that one. That was a very promising and a good confirmation of our technology and our solution, which was actually based that we are an important part of the total fossil-free solution. This was actually done with local utility together with a mayor in Helsinki. It was a lot of focus on that one.
The results that we had from this discussion here has actually opened up a few other doors to us in Sweden and some other places also, that we are talking to some utilities now that they have heard about this Helsinki Challenge situation, and they want to do a similar thing for them, not in such a big scale, but in a smaller scale, of course.
That is in a way that we are by doing a sort of a pre-study, we are telling the customers how and when and why should they use energy storage solution. That is very, very important. Yeah. Then we also, we have earlier announced about the Luleå pilot, and that is heat-to-heat application.
We are going to use the waste heat, but we haven't started with that one yet. We are in a pre-study phase, and that pre-study phase will continue until the end of the year. We will, next time we get in contact, if not before, inform you about what we will do up here. It's a very interesting place to be at, first of all, because there's a lot of things happening up in Luleå when it comes to green steel and other things also. We are working very close together with Swerim, which is a branch organization that is owned by the metal industry by 80% and 20% by the government.
We are really in the sort of bull's-eye of where things are happening. We are working with peak shifting, and to be able, I mean, the easy way to explain it is that we charge the battery when once it's cheap, and we discharge it when the price is expensive. This is of course getting more and more higher interest in because of the fossil-free situation. It happens. It never happened in the past, long time ago, when we were using oil and coal. Now it happens more often, even in Sweden, that we have negative electricity prices. Especially if it's blowing, the wind is very heavy during a long time.
We need to export the electricity and that is the time when we should charge our battery for later usage when the wind is not blowing. We are continuing focusing on our arena, where we want to be. We want to be on the large size, which means that the capacity of 10 MWh, even 1 MWh is possible also, of course. We think that we should have a storage time of days, maybe weeks, because to take the advantages of that we have a thermochemical process instead of a sensible solution.
That is where we have the best arguments and the best unique selling points, really. The thing, the fact also that we have possibilities to have one size of the power to charge and another size of discharging is also a good thing for in many of those cases.
You want to charge the battery during maybe a long time when it's good weather or warm weather, and then you want to discharge it maybe during a certain much shorter time, and then you need another power, of course, to do that. That's where we are. The core technology is based on the calcium hydroxide that we are charging up to, we're heating it up to 550 degrees approximately.
Once we reach that temperature, the steam, the water will disappear from the molecules, and that could be used in a district heating way or other things. But the energy is then stored in calcium oxide, CaO, and that could be, as I said, could be stored for a longer time or a shorter time, whatever, it doesn't matter. You have the same energy in it over time. Once you will use this, when you have a very cold winter week or whatever in the city, you put on 120 degrees steam, and you get a chemical process with it that you release a lot of energy in 450 degrees Celsius steam.
That then you are back to calcium hydroxide again, and then you can charge it once more, you do the circular thing. That is because of the nano-coating, making it possible to discharge, to charge, to discharge, and so on in a repeatable way. We are working with three applications, Heat to Heat, Power to Steam, and Power to Power. I would like to say that Power to Steam in the middle here is the first top priority and where we have the longest experience in. We are building the Stockholm pilot, the Power to Steam. Berlin was Power to Steam.
Shortly after that, we have the Heat to Heat that we are doing this pre-study now in Luleå, as I talked about, and where we're actually going to plan for and we're doing this study based on using the waste heat as a charging.
Then we are going to use the heat also once we need it more in district heating up in Luleå and so on. It's a very exciting and interesting arena because people don't very often know about this, but there is a lot of waste heat in the industry. We need to, of course, have the waste heat of 550 degrees then. That temperature you have in the steel industry and in the ceramic and glass industry and otherwise.
The waste heat in Europe is huge when it comes to the industrial steel plants that is working there. This is a schematic build of how it could look like. We could power the salt with heat or gas or electricity. We have a flexible solution there. We do the charging from the top, the falling bed, we get out the calcium oxide in the bottom, and then we discharge it.
We take out heat and or electricity. You could take out the heat, and you could put it into a turbine and make electricity. After the turbine, you do the heat. There's a number of opportunities here. It's not one standard solution that fits everyone.
That's a good thing that you can also change the power in charging and the power in discharging, as I said. The charger, we are working very close with an Australian company called Calix. They have a long history of the falling bed technology. For the discharging, we are working with a Japanese-owned Finnish company, Sumitomo SHI FW, that has more than 100 years of experience with fluidized bed. They have the experience in fluidized bed of traditional applications, which means that they are burning biofuel, they're burning garbage, and different things. It's another slightly, well, quite a big difference actually to use calcium oxide to instead of biofuel or biomass situation.
That is why the cooperation is so important that they understand our need and we understand their need, how we should come together and make this up and running. The Stockholm pilot plant is a huge effort that we have done during Q3, and it goes on in Q4 and also beginning of next year when we do the testing. As I said, we are at the end of the mechanical installation now. What you see from this picture here is actually the bottom of the charging reactor from Calix. And we have made a video four or five minutes long that you can find on the website, in the report.
We will also release a special announcement of that one in social media later on. That will hopefully give you an idea of how much work we have been doing in this area. We have had between 15 and 20 sub-suppliers on every reactor. We have had electricians, we have put in sensors, transmitters and installed an electrical PLC system to control the system because this is a pilot plant, and that means that we need to take out as much information as possible in various positions. That we are doing because we want to be sure that we could scale this up later on into megawatt sizes.
We are having, of course, a number of parameters that we have a target on, and we want now to verify those levels. It's all about level of hydration and level of dehydration and level of heat transfer coefficient and all those technical things that will work as a base to scale it up later on. Take a look on the film, and you will hopefully see more about it, how it looked like. It's a YouTube link that we have. The SaltX ecosystem looks like the last time I think, except for the ABB, which is very pleased to have on board here because of their knowledge and their experience.
We want to take them on board in our, as early as possible when it comes to the designing of this energy storage application. That is very important. Not that they could tell us if we should change anything, but they could probably recommend us to do various solutions. As I said also, we have the same mission to electrify the industry, and this is also open up the door for them, ABB, to find new areas and we can. Well, as all the other partners here, we have a win-win-win situation. Application partners, Swerim is the most active partner now. We have a very tight, good cooperation with them, and they are supporting us with a pre-study in Luleå.
They have a very long history of the steel industry, and they are on the way to come up with suggestions and proposals of how we could utilize our technology in the best way. INERCO and Shuangliang, we're still working with them, but they are a little bit not the highest priority right now.
INERCO wants to go their own way with own IP rights and so on when it comes to the reactors, so we let them do that. But as long as it's based on our material. Shuangliang have tried now for some time to build their own pilot installation. The results have not been the best, but they are still struggling to get it.
We are in a discussion with them to maybe formalize some sort of other cooperation agreement with them. But that's gonna be a separate discussion that will come, maybe it will come to some sort of license agreement instead of only supplying the material. We will see about that. We are in discussion with them at the moment.
This is a picture that we continuously live with and we are updating it constantly. We are looking on our competitors and looking on where we are at the moment ourselves. Situation is that if you see the blue statement that we have outstanding energy density of more than 500 kWh/ton compared to the molten salt and compared to the concrete. What does this mean really in concrete terms?
Well, it means that we have a more footprint effective solution that we can have higher energy based on certain square meters, which is very useful in cities and so on. The CapEx is, of course, a tolerance minus plus, but around EUR 100 per kWh. Translated into Swedish currency is about SEK 1 million per MWh. That is, of course, subject to constant improvement, but that is where we are at the moment, and we are not that far away from the competitors, which is very good to see. The good thing is that we are using the material that is environmentally friendly, and there is a lot of calcium carbonate out there.
It's safe. There's no explosion risk. There is no high pressure or anything like that. Last but not least, it's possible to transport this material. You can charge it in one geographical place, and you can discharge it in another place. Yep. This is describing where we are. We are at the end of our development phase. We are working with the pilots and we take the responsibility of doing complete turnkey pilots because of we are building our competence and we are building the know-how of how to do those things. This is very, very important in the future that we have that. We are not, in the long run, we are not going to build complete turnkey projects. We don't have that balance sheet, and we don't have that capacity to do that.
We by doing it in the pilot, we get the know-how and we know how to build it, and then we have to license it and transfer the technology fee to key partners in the future. So yeah, we are supported. We have soft money. We have partly financed the Stockholm pilot with soft money from Berlin, from Energimyndigheten. It's very important. We want to come to a pre-commercial situation. What do I mean by pre-commercial? Well, that's when the customer is paying, well, hopefully everything, but at least a part of it to be strongly committed to build those things.
The ongoing pilots, Shanghai, it's we are talking with them at the moment, so they're not very active at the moment. Stockholm is the area where we are really focusing on a 100 kW-200 kW solution. Luleå, the pre-study is going on until the end of the year. 2023, we plan to do those pre-commercial pilots. 2024, in the beginning or at the end of 2024, we want to have at least one commercial project of the 5 MW size. This is the roadmap, the go-to-market map that we see at the moment. It's going to be both, as you can see, Power to Steam and Heat to Heat. Yep. Harald, now it's your turn.
Thank you, Carl-Johan Linér. I have two comments. One, we are pleased to announce that we, in the period, have had some revenue, not of any size, but just the fact that we've had some revenue, and it's coming from a consultancy assignment, the support that we have been asked to perform for one of our partners, and this is just the first payment, the first part of the revenue that we could recognize. It's not the fact that it's the money or that it is something that we plan to live off from going forward, but it shows, demonstrates the close cooperation we have with our partners and the confidence they have given us that we can perform also services for them that they're prepared to pay for, which is pleasant.
The second comment is much like in previous quarters, and we have described our activities in this quarter, Carl-Johan Linér has done that. We have funded the plant outside Stockholm, and that's what the money has been used to, in addition to some of the work up in Luleå and some of the work here in our own premises, in our own laboratories. That cash flow varies, has more to do with payments in advance to these suppliers for the Stockholm plant. In general, that's what we've been doing and that work continues into Q4 in the beginning of next year. So thank you.
Thank you, Harald. Questions? We have a question of the shipping procedure. Is the shipping procedure complicated? If you were to ship the charged salt by ship, does it then need special containers? Can it get wet during shipping from rain or moisture, or is it critical to stay dry? Can the charged salt be destroyed by during the shipment? How is the shipment by land, special trucks, et cetera?
You or me? Go ahead. Continue.
We have looked into this, of course, and this is fully possible to do the shipment. You don't need any specially designed containers or anything like that. You have to get sure that it's not getting wet, but that's easily done. This is a normal process today that when the companies are shipping this type of salt. So it's fully possible.
It's more difficult to find the application when it comes to this. We call it the TESS, by the way, Transportable Energy Storage System. That's our concept. Talking about the waste heat, as we were talking about, you certainly have a lot of waste heat in certain geographical places, and you have the need of the energy somewhere else. That is a very interesting opportunity. Where you have those waste, you often have either close to the water industry, or industry in the middle of the country also.
Very often those countries, those companies have railway, and you can also transport it on a train here, which is also fully possible. Special trucks, I think what you should, when it comes to the business case, it's getting more economical to use train or boats here or ships. Special trucks could be used for a certain small amount of volume, yes. We are talking about quite many trucks. I mean, we're talking about thousands of tons here. The cases that we have looked into has been more into the train and boat system. You want to add something now, Harald?
No, I'm fine. I'm fine with that. Okay. There are no further questions? Any more questions?
We just have to wish each other a very happy All Saints' Day. Good. Yes . Okay. Thank you for calling in and keep up the good work. Yes, we will.
Thank you.
Thank you very much. Bye-bye.
Bye.