QUANTAFUEL REPORTED Q 1 -GOOD PROGRESS – QFUEL WILL NEVER BE SO CHEAP AGAIN
I enclose the important parts from the report:
We have operated a production line in Skive, Denmark, at full capacity with the right
balance between gas and oil production and increased operational stability. With these
major achievements we target proof-of concept in Q2 2021 and full production end of
Q3 2021, as announced earlier.
We are also pleased to confirm that we have started feeding plastics into the new technology test plant in our second plant in Kristiansund, Norway Quantafuel’s strategy is to build large-scale Plastics-to-Liquid (PtL) process plants at multiple locations throughout Europe, and in due time expand into other high-interest geographical regions. With NOK 577 million in cash by end of Q1 2021, and strong support from our three strategic partners, BASF, Vitol and Kirkbi (LEGO foundation), we are in a strong position to continue our journey shaping the chemical recycling market for plastic.
In Skive, Quantafuel has built the first, and to our knowledge, only fully automated and continuous process plant transforming mixed waste plastic into high quality products. We are convinced that this approach is essential in our strategy to become the market leader within chemical recycling of plastic.
Now that we are getting increasingly closer to this point, we have started to firm up our roll-out plan for Europe by signing an agreement with Corepla and Saipem for the Italian market and with BASF and Remondis targeting the German market, as well as other potential markets.
We are working on a feasibility study with VTTI, a subsidiary of Vitol and ADNOC, with the aim of bringing a project on their zero-emissions site in Amsterdam to Final Investment Decision (FID) as soon as possible.
During the first quarter, we concluded the purchase of 40% of Geminor, a Norwegian logistics- and recycling company with a presence in 11 countries and an annual turnover close to EUR 200 million, with an option to acquire the remaining outstanding shares. Besides better-quality feedstock that in turn will improve product quality, we will considerably improve prices for feedstock. How much this will be is difficult to determine as it will change from contract to contract, but in certain cases we find it likely to improve financials with EUR 100 per ton or more.
Europe has set a target of a 55% recycling rate by 2025. Denmark’s target is even higher, with
a requirement of 65% for packaging material – post-consumer waste.
The Kristiansund plant is currently recycling and producing plastic fractions from industrial and
private plastic waste from the north-west coast of Norway. At our plant in Kristiansund, we are also testing new reactor design for future plastic-to-liquid plants. The chemical recycling pilot and reactor design testing is conducted in partnership with BASF.
Esbjerg plant – Quantafuel has been working on establishing a first large-scale plant in Denmark for the past two years, and after assessing more than 40 potential sites we selected a plot outside Esbjerg. Building and environmental permit applications were submitted six months ago, and we expect to receive final approval soon.
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