Capsol Technologies ASA (CAPSL) Earnings Call Transcript & Summary

Welcome to Capsol Technologies' Q2 and First Half 2024 Results Presentation. My name is Wendy Lam, and I am the CEO of Capsol Technologies. Today, we will present to you our business highlights and operational review and a deep dive on our CapsolGT solution, which is a carbon capture solution for gas turbines. And what you see on the image here on the first page is some output from a pre-FEED study that we completed in Q2 with a leading gas turbine provider. We will also be presenting our financial highlights and an outlook for what is ahead. Joining me today is our CFO, Ingar Bergh; and our Chief Technology Officer, Cato Christiansen. So I will start with an overview of Capsol Technologies. Capsol Technologies is one of the very few publicly listed pure-play carbon capture technology companies in the world. We finished our uplisting to the main board of the Oslo Stock Exchange in June. Capsol is a capital-light licensor of point source carbon capture technology that has superior efficiency and safety. We have a carbon capture and heat recovery system in one. This allows us to achieve lower capture costs of up to 40% versus solutions that use amine solvents. This is driven by a lower electricity consumption that we need for each ton of CO2 captured. We can achieve 0.5 to 1.5 gigajoule per ton of CO2 captured with little to no heat integration. Our business is built on over 15 years of R&D. We have IP in over 12 patent families and have invested EUR 50 million to date. We have demonstration units that have allowed us to achieve 13,000 hours of operation at live customer sites with our process and their flue gases. Our technology is based on a proven chemistry that has been used in hundreds of plants over many decades. And our technology platform builds on this proven chemistry using commercially ready available parts on the market. Our team is headquartered in Oslo, Norway, and we have team presence in Germany and in Houston to access the North American market. And our team in these locations are responding to the growing demand for CCS globally. We are targeting a number of industries. First, with cement, one of the highest emitting sectors in the world with 8% of the global emissions. This is considered a hard-to-abate sector, where CCS is an important solution. We also have biomass and energy from waste, where biomass or waste is being burned for energy, and then we're also focusing on gas turbines where power generation is typically the purpose. So I'd like to start with also some highlights from the first half. We have seen an increased demand and target price range for Capsol. Our Q2 revenues were NOK 17 million, this is up more than 3x versus the same period last year. Our project pipeline has also more than doubled to 13 million tons of CO2, driven by our customer activity in biomass and cement. Our target price range for licensing agreements has also increased to EUR 10 to EUR 15 per ton of CO2 installed capture capacity. This is an increase from EUR 7 to EUR 12 that we had earlier and has been validated by recent customer agreements. Second, we've also seen very high activity in this first half. Our work with customers continue to confirm our value proposition to the market. For example, in cement, we have shown -- we have had studies that shown energy use improved to as low as 0.25 to 0.55 gigajoules per ton of CO2. This is with some heat integration, and this is already an improvement to the already low numbers we can achieve without heat integration. Our CapsolGT study has also been completed with a leading gas turbine provider where we were able to show a lower carbon capture cost for gas turbines and have shown that we can operate in very challenging environments. Our CapsolGo demonstration units continue to be deployed with our third unit, at a Swedish biomass plant. And post quarter, we've also closed an order for 2 campaigns in the cement sector, our first ever in this space. Third, we have entered the North American market and also completed our uplisting to the main board of the Oslo Stock Exchange. Our office is now opened in Houston to access the world's largest CCS market in North America. We are now listed on the Euronext Oslo Børs, which makes our stock more accessible to international investors. Our current business plan is fully funded with just under NOK 93 million in cash. So I'd like to say a little bit more about Capsol's technology. We have patented technology that has a number of competitive advantages that directly meet our customers' needs. Number one, we have an inherent heat recovery and generation system. Our customers are dealing with carbon capture processes that are very energy and heat intensive, and that's what drives up cost. The ability for us to generate the heat that we need in our system allows us to improve energy efficiency and reduce OpEx. Second, our customers also have current operations. They are running plants and they want to minimize interference with those operations. So Capsol's technology is a stand-alone capture unit that is all electric and has little-to-no water need. This simpler integration reduces the CapEx and project risk for our customers. Finally, our customers are also trying to operate as safely as possible, and they want to ensure that their projects can meet environmental requirements to get permitting for future carbon capture projects. And our solution with a proven and safe solvent using hot potassium carbonate meets those needs. Hot potassium carbonate when combined with CO2 is just like baking soda. So our technology platform is built on these differentiators, and we commercialize this technology in 3 products. The first one is the CapsolGo demonstration unit. We have 3 of these in operation today in Sweden and in Germany. And these units are actively capturing CO2 today at customer sites. It gives our customers the ability to test their flue gas with our process and also accelerate decision-making for full-scale plants. And that is our second product. The CapsolEoP for full-scale plants. EOP standing for end-of-pipe. This is where we are currently assigning license agreements. And these full-scale plants can be anywhere from 100,000 tons of CO2 capture capacity to over 1 million tons of CO2 capture capacity. The image you see here is the future plant for Stockholm Exergi, which is sized at 800,000 tonnes of CO2 capture capacity. The third product we are commercializing is the CapsolGT for gas turbines, and you'll hear a little bit more from our CTO on that solution. So we are continuing to partner with industry pioneers for our global scaling and all of the partnerships that we invest in are aimed at reducing carbon capture cost and capturing market share. We are partnered with Munters, who is a Swedish industrial. We're working with them on technology development to optimize some of the plant design. Munters is also an investor. Sumitomo Foster Wheeler is a partner for waste energy and biomass plants. GE Vernova is a partner for our CapsolGT solution where we are working on customer cases. Siemens Energy is a potential provider for all of our CapsolGT solutions. Storegga is a project developer that focuses on storage, and we are working with them to make carbon capture more accessible to the market, exploring services like Carbon Capture as a service. And then finally, Petrofac is a partner for full plant design. So our licensing model and our business model as Capsol allow us to work with the best partners for every customer project and we do not need to have any exclusivity with any of our relationships here. So we are also partnering with some other engineering partners to deliver to our customer demands on various customer studies. Our ambition is to further develop these industrial partnerships globally in 2024 and beyond. So now I'd like to say a few words about our operations. As you've heard me say in our highlights already that we have already built a mature pipeline that has more than doubled since last year and we have now 13 million tons of CO2 capture capacity in all of the work we are doing with our customers. This project pipeline is made up of paid engineering studies, our CapsolGo demonstration units and various licensing agreements. We have focused our work and built this project pipeline to prioritize projects that we see have a higher likelihood of reaching FID or final investment decision in the coming years. And this project pipeline is also supplemented by a large number of leads. We are working around the world for sales, engineering in all different sectors. Behind this project pipeline is different waves of demand that we are seeing. And the primary waves of demand are in the first 2 categories. The first one is in biomass and energy from waste. Our customers in this sector are looking to generate clean power and also looking to take advantage of new business opportunities in carbon removal. And Capsol's technology is very well positioned for this sector with our low energy consumption, our safe solution that is a fit for even residential areas and we can even generate extra heat to, for example, boost district heating and create another revenue source for these customers. This category makes up just under half of our mature project pipeline. The second sector is around cement. And although we started this -- our work in this sector after we started with biomass and energy from waste, cement makes up more than half of our mature project pipeline. And our customers here are looking to meet more stringent regulations in their operations, and they're looking to stay more competitive for the future. Our solution with Capsol is attractive for this sector because, again, we have lower energy consumption, and it works especially well with the high concentration of CO2 that you would typically see from a cement plant. And again, our solution has easy to -- easy method of integrating with currently operating plants. And we don't need any external steam or water supply. Our third area of demand that we are seeing emerging is in the gas turbine sector. Our customers here are looking for ways to decarbonize this hard-to-abate source of power. And again, our technology platform can provide a lower cost than the alternatives that exist today. We can be very efficient at capturing low-concentration CO2 and even generate extra electricity. So we have, again, completed a study with a leading gas turbine provider and are continuing with our commercialization in this space. So I'd like to say a little bit more about one of our key customers, Stockholm Exergi, who is running one of the largest biomass plants in Northern Europe. We have signed our first licensing agreement with Stockholm Exergi in 2022 for a future capture plant sized at 800,000 tons of capture capacity. What we're seeing with customers like Stockholm Exergi who are working on biomass with carbon capture projects is that they are attracting the attention of the voluntary carbon markets and it's making projects like this more attractive financially and for investors. You can see just in the last couple of years that there has been a stark increase in the purchase volume of carbon removal credits. This means the future CO2 capture for these plants can be sold as carbon removal certificates. And this is interesting for buyers because they are looking for ways to offset their own emissions. So Microsoft has signed an agreement with Stockholm Exergi, the biggest deal of its kind to purchase 3.3 million metric tons of CO2 with Stockholm Exergi and that's the dark bar you see in the first half of 2024. Frontier Climate, who is backed by Alphabet and Meta has also signed an agreement with Stockholm Exergi worth $48 million, the actual volume is not disclosed so it is not represented on the graph. So again, we are seeing some positive signs for projects like this and overall carbon removal projects. I'd also like to add that these agreements are also supplemented by Stockholm Exergi's earlier achievement of getting EUR 180 million in grants from the EU. They've also achieved in the first half their environmental permitting for this future capture plant, which is in the middle of a residential area. And also the EU backed State Aid” scheme in Sweden for carbon removal projects has also been improved. And the first reverse auction for this -- for that funding already went live last Friday. So moving on to CapsolGo. Again, these are demonstration units that are actively capturing CO2 at customer sites today. And our third unit has been deployed now at a Swedish biomass plant, Vaxjo Energi Sandvik plant in Sweden. We have deployed this project with our partner, Sumitomo Foster Wheeler and started up operations in Q2. The full scale potential of capture capacity for CO2 is 260,000 for this plant, and we'll make this plant carbon negative. Secondly, after the quarter, we have also signed our first-ever demonstration unit in the cement sector with SCHWENK, who is a German cement provider. They have 2 plants in Latvia and Lithuania, where our CapsolGo demonstration units will be deployed later this year in Q4. The combined potential capture capacity in both of these plants is 1.5 million tons. So we're very excited about the continuing traction we see with CapsolGo. Continuing on with our international expansion, we have also established our U.S. office and an International Advisory Board. Our U.S. office has now been opened in Houston with Robin Bodtmann appointed as the Managing Director for the Americas. And she brings over 30 years of experience in the energy industry with various EPC projects and engineering services. And we'll continue to work on our recruitment process to build up the team to again respond to the growing demand we see for carbon capture in North America. And we're already seeing very interesting leads from the pulp and paper sector, aluminum, cement in the power and gas turbine space. Our International Advisory Board is also there to help share their deep expertise, experience and network. And we have the members you see on the bottom of the page here. There are 2 members who are based in the U.S. We have Morgan Bazilian, who is based in Denver. He is serving as our link to academia and policy. He's leading the Payne Institute for Policy at the Colorado School of Mines. He's worked for the World Bank, the EU and is a sought-after speaker on all things climate. We have Ian Dunderdale, who is an energy executive with over 30 years of experience. He's also worked on various climate technologies and worked with investments and M&A and project development. Jing Jin is our representative from Munters, who again is an investor and a technology collaboration partner and she is the VP of Clean Tech at Munters. Jan Kielland is -- maybe a familiar face. He is the former CEO of Capsol Technologies and he is supporting with his over 40 years of experience in the energy sector. And our last member of the Advisory Board is Stéphanie Saunier. She's a Managing Director of a consultancy that is supporting climate change mitigation. And she is also serving on the Board of a large European lime manufacturer. So with this team, we are confident that we can reach the international markets that we need to. And building on that, we are focusing on North America and Europe for our targeting. This is where we are seeing the largest scale CCS projects coming to fruition in the near term. And you can see that countries and regions in these areas offset very aggressive targets for emissions reduction by 2030, anywhere from 40% to 68%. And these targets that have been set for emissions reduction, are also supported by various incentives typically backed by government. You may have heard of the Inflation Reduction Act, IRAs, tax credit for carbon storage of $85 per ton. In Canada, you are also seeing CapEx rebates of 4 CCS projects of 50% or over 60% in Alberta. In the EU, we have the ETS trading system with carbon pricing and increasing regulation that is forcing emitters to pay for their emissions. And this is especially affecting cement providers. So in total, across the markets, we are seeing that by 2030, there needs to be 1 billion -- million tons of -- 1,000 million tons of CO2 that needs to be captured by -- that need to be sanctioned by 2030. And with our business model, based on a price of EUR 10 to EUR 15 per ton of CO2 captured, this translates to a market size of EUR 10 billion to EUR 15 billion for technology licensing. And Capsol technology aims to achieve 5% to 10% of market share and achieving this with high pretax profit margin of 40% to 60%. Beyond licensing, we are also exploring the potential for additional revenue growth, including services for recurring revenue. So now I'd like to pass on to our CTO, Cato Christiansen, who will tell you a little bit more about CapsolGT.

Well, thank you, Wendy. I will try to dig a little bit deeper into our technology specifically designed for gas turbines called CapsolGT. But before this, I would try to say something about the challenge we are facing. Now it's known that already today, highly efficient gas turbines can play a key role in decarbonization globally. Gas turbines can replace more higher emitting fossil fuel plants such as oil or coal power plants. But even if the natural gas is the cleanest burning fuel of the fossil fuels, we still know that the approximate 6.6 terawatt hours of electricity produced by gas power in 2023. So depending on the efficiency of the power plant, we'll produce something like 3 billion to 4 billion tons of CO2. Now this means that if gas power is going to continue to play a significant role in the energy transition going forward, we need to do something about the CO2. Now carbon capture from gas power is an obvious choice to do that. And it has been tried for quite some years, and it's been proven quite challenging and also rather costly. The main reason for this is, again, related to the clean burning natural gas has a low carbon content, which means that also the flue gas coming from gas power has very low concentration of CO2. That has some disadvantages when it comes to carbon capture, separating CO2 from a very low concentration flue gas is much more energy-intensive per ton than separating CO2 from a high concentration flue gas. And in addition, the gas power production have vast amount or large volumes of flue gases. This means that the capture technology fitted to a gas power plant will need to handle very large volumes, results in large ducting, large vessel sizes, large columns, more steel, more plot space, increased CapEx. So all in all, this results in carbon capture being a rather costly tool for gas power. So how have we in Capsol Technologies try to address these challenges? While we have designed a carbon capture technology for gas power that is specifically designed to fit directly to and treat the hot flue gases from a gas turbine. We call it the 3-in-1 carbon capture system. And I'll try to explain a little bit why. First, we utilize the heat that is available in the hot flue gases from gas turbine. We recover that heat and use it. Second, we pressurize the flue gas and have a very efficient pressurized carbon capture process using potassium carbonate. And third, our compression and expansion system converts the open cycle gas turbine into a combined cycle power generating machine. So some of the highlights of the CapsolGT is that we can capture 95% plus of the CO2 in the flue gas. The process is highly efficient and is applicable for all sorts of conditions, meaning all sorts of ambient conditions, hot temperatures, limited access to cooling water, et cetera. The pressurization of the flue gas also reduces the size of the plant and the integration of the capture process and the combined cycle in one reduces overall complexity. The capture process utilizes the same HSE-friendly solvent as we use in our CapsolEoP technology. And in addition, the capture process does not require the operator of the gas turbines to modify their gas turbines at any means. So it is applicable both for retrofit and greenfield. We plan to deliver these CapsolGT plants together with leading turbine manufacturers. As Wendy mentioned, we have just completed a quite comprehensive study, a pre-FEED study together with the turbine manufacturer. And as a result of this, we have made a video showing you or trying to show you how a CapsolGT power plant would look like. I know this video is -- there's a lot of information in it. So it might be difficult to follow on stream. But I encourage all of you to go to our webpage and look at a video on your own again to get more details. Now this video shows you a plant equipped with the CapsolGT technology. And as you can see, we put this plant in the middle of the desert to visualize basically that it is applicable for very harsh condition with high temperatures and limited access to water. This specific plant consists of 2 gas turbines, each equipped with a CapsolGT 3-in-1 capture solution. This plant also includes CO2 post treatment and compression to a supercritical high-pressure CO2 pipeline. The video highlights the 3-in-1 features. As I mentioned, the recovery of the heat from the hot flue gases, the capture of the CO2 in the CapsolGT pressurized absorption towers and the compressor and expansion system that converts the open cycle gas turbine into a combined cycle power producing machine. Yes, this is the right slide, sorry for this. So -- no, here we go. Yes. Now one of the things that we wanted to do when we did our pre-FEED study was to try to quantify the amount or the additional power output of our CapsolGT process. And we've done this for various different cases, and it will vary for different types of turbines and different conditions. But this waterfall diagram on this slide shows you one of the examples that we did. And this one is very representative of what the technology can give. As you can see here, the CapsolGT, when you add it to an open cycle gas turbine, it will increase the efficiency of the combined power plant. So when we add the CapsolGT, we increased the efficiency of about 10.4% in this case. Now of course, the capture process, the pumps, compression, dehydration and cooling and so on will eat some of that efficiency gain. So when you remove these from the 10.4%, so your CO2 has been captured and is entering the pipeline at the right conditions. The total efficiency gain we see from the CapsolGT process is about 6.7%. Now we find these results extremely encouraging. And together with the lower complexity of the system compared to our competitors, and the smaller sizes of the equipment, we believe that the CapsolGT is a very attractive offering into the market. Next slide, please. So how far have we come in the commercialization process of the CapsolGT. Well, as mentioned, we just finished this comprehensive pre-FEED study. The studies have triggered quite a few value engineering initiatives to improve the process and reduce costs even further. We have ongoing discussions with gas turbines operators and greenfield developers to look at deployment of the first-of-a-kind commercial CapsolGT plant. We aim at signing a FEED study by the end of this year, and with a very ambitious target of a plant start-up then in '26, more likely '27. Since the business model for a CapsolGT plant can be a bit different than our traditional licensing model for the CapsolEoP, we also believe that there are some opportunities to gain more value per ton installed capacity of the GT than from our CapsolEoP. And on that note, I think it will be good to hand over to our CFO, Ingar Bergh, who will talk a little bit more about our company financials.

Thank you, Cato. I will provide a short overview of the financial and capital market highlights for the period. In Q1, we did a private placement, raising gross NOK 88 million. This was to fund our strategic initiatives. In Q2, we started investing in these strategic initiatives. Also in Q2, we did a very successful offering, targeting Norwegian and Swedish retail investors, raising gross NOK 30 million with 750 -- more than 750 subscribers oversubscribing the offering by more than 4 times. So together, the first half of 2024, we raised net proceeds of NOK 109 million. Revenue for the quarter was NOK 17 million, more than 3x relative to the same period last year. Revenue for the half year was NOK 36.5 million, up more than 5x over the same period last year. Revenue growth mainly driven by CapsolGo demonstration campaigns, but we see increasing contributions from engineering deliveries and we expect licensing revenue to materialize by the end of the year. Pretax profits for the period for the quarter was negative NOK 22.1 million relative to negative NOK 12.8 million the same period last year. This was driven by general cost -- operational cost increase as we strengthen our engineering capacity, and we invest in the highlighted strategic initiatives like expanding our presence in North America, developing our CapsolGT solution further and investing more in our CapsolGo demonstration program. Next slide, please. Following the Q1 private placement, we started the quarter with NOK 97.3 million in cash. The differences between earnings and cash flow for the quarter were mainly due to besides the normal amortization, et cetera, mainly due to some prepaid revenue coming in and NOK 4.6 million in noncash allocation to the employee share option programs because the share price had a positive development during the period. We invested about NOK 8 million in our third CapsolGo unit now delivered to Sweden and about NOK 4.7 million in our CapsolGT solution, which Cato just presented. The negative cash flow from operations and investments were mostly offset by the net proceeds of NOK 26.4 million from the retail offering we did ahead of our uplifting. With that, we ended quarter and the half year with a cash position of NOK 92.6 million, which is a healthy cash position, meaning we are fully funded to execute our business plan, including the strategic initiatives. Next slide, please. End of last year, the Board of Capsol Technologies decided to start preparing for uplisting to the main board of Oslo Børs. In February, we closed a private placement broadening our shareholder base, adding institutional and industrial investors. In June, ahead of -- we had our first day of trading on Oslo Børs, making sure that our share is available for more institutional investors globally. We are now today, one of the very few listed pure-play carbon capture companies globally making sure investors all around the world have easy exposure to this very exciting sector. With that, I will give the word back to Wendy Lam.

Thank you very much, Ingar. So I want to close off with some concluding remarks, and we will also do some Q&A. So on the back of momentum over the last 12 months and the first half, we are very excited about the outlook ahead for the market and also for Capsol Technologies. And we expect n number of milestones in the next 6 to 12 months to help derisk our path towards our long-term goals and our revenue potential. These milestones include continuing to bring our CapsolGT solution to the market, along with a leading gas turbine provider partners. We will continue to deploy our CapsolGo demonstration units to help demonstrate how our process works out in the field with our customers. And it will also help accelerate decision-making on projects. We will continue to grow our project pipeline and expand our revenue future -- revenue potential with our engineering contract awards. We also look forward to getting our first license agreements on the back of the FID or final investment decision of Stockholm Exergi, where we've signed our first license agreement. And we'll continue to build our momentum for new licensing agreements and continue to expand our partnerships to continue our global scaling. So to conclude and in summary, on the last page. Again, we are very excited about the CCS market, and we are also very excited about the growth we have seen in the first half and in the last year. And we think that carbon capture solution that Capsol Technologies offers is a proven and highly competitive solution. We're already seeing that in the doubling of our mature pipeline over the last 12 months and we'll continue to expand our geographical presence with our partners to provide the best solutions for our customers. And again, we are one of the only publicly listed pure-play carbon capture technologies in the world, and we look forward to answering your questions on this presentation today. Thank you very much.

We have a few questions that have come in during the presentation. And one of them is regarding operating expenses and organization. If the organization set and will the expenses be more stable in the future? Meaning what will the expenses be without any investments, only operating expenses.

Well, we have not guided on those numbers as we covered in our report in more detail. There was a few things contributing to relatively high operating expenses this quarter, including one-offs connected to the uplisting process, high allocation to the share option program because of a good share price development and a few other things. So this quarter, we had, I would say, a relatively high operating expenses, higher than a normal quarter. We are still growing our organization, but we are fully funded to do what we plan on doing, including the strategic initiatives that we have highlighted.

And maybe I'll also add, yes, we have been doing a lot to build our organization in the U.S. and beyond, and we have been able to attract a lot of talent. So on the hiring front, we are matching our hiring activity in line with what we need to do to deliver to our customers. And we're also employing our partnerships globally, for example, with engineering companies to help a balance how we grow in a careful way.

Perfect. How much revenue will the Stockholm Exergi contract generate? What is the timeline for revenue recognition?

I'll pass that one on to you as well, Ingar.

Again, we have not guided and we will not guide on specific revenue from specific contracts. What we have said when we announced the contract, was that Stockholm got quite good price on the licensing as the first mover as we and they saw it as more important to get this project off the ground and then getting as much as we can from that contract. It will help build our credibility towards other clients, so that it happens in itself. It's the highest value for us. We do, of course, get paid. And you can check with analysts. They have their estimates and pretty good ones. As a trade-off towards giving them a good price, we also get paid on everything on their final investment decision, which they have now set for Q4 this year.

This is probably also for you Ingar. Cash spent on investment activities increased in Q2 2024. Please give some guidance on the development going forward.

We spent -- during Q4, we spent about NOK 12 million, including NOK 8 million on our third CapsolGo unit. The CapsolGo unit is now on site and delivered. There is some CapEx remaining on that. But when this CapEx including also some CapEx on the new liquefaction unit is finished, there isn't any plans today on investment in additional units or anything like that. So we will continue to invest in technology, but our biggest CapEx spending have been on these physical units, which are now nearing completion. So most likely, you will see investments lower going forward, at least in the -- with what we have in the pipeline today.

Next one, which involves CapsolGo. Can you elaborate on your revenues breakdown, please? How much is billable engineering hours? And how much is CapsolGo, et cetera?

I'll let Ingar answer that as well. But in general, with CapsolGo demonstration units, it's based on a leasing model. There are some start-up costs as well as a monthly fee for running the unit with our staff. And then engineering studies are typically done separately for a particular plant design. But Ingar, I'll let you elaborate more on that.

Yes. As I mentioned, still most of our revenue is from CapsolGo and -- but as we win more and more of these paid engineering studies, we will see more and more revenue coming from there. Also, as we configure our organization to streamline these deliveries more. We -- again, we have not provided numbers on the split of CapsolGo revenue versus engineering revenue. But in general, most of it from CapsolGo. We had a relatively slow quarter on CapsolGo because some units were coming off, while other units were coming on. So when we see all 3 CapsolGo units in operation, and our [ 2 ] liquefaction units, the typical revenue rate will be considerably higher than what we saw this quarter.

And then this one will be for you, Wendy. Has the stock market listing in the U.S.A. being considered?

We have not considered a stock listing in the U.S.A. to date. We think with the uplisting we've made already so far to the Oslo main board is already a great step forward, and we're already seeing some positive traction. Now at the same time, the U.S. and Canada is a very important market. So we're focusing our efforts there on customer activity and projects and even working with project developers. So we think there's probably enough activity for now on that front for the North America space.

Perfect. And have the positive developments in CCS incentives in 2024 impacted the client dialogue that you see?

Yes. I mean the incentives we are seeing in the market in different geographies have continued to develop. I mentioned in the presentation, the Swedish State Aid that's backed by the EU that's going to be supporting more carbon removal projects in Sweden. That's also setting a good example for what is happening in other regions. The U.S., they're trying to set up clear standards for carbon removal projects. We do see the increasing pressure from regulations like CBAM or carbon border adjustment mechanism for cement. And I also mentioned the voluntary markets in general are making projects where you capture carbon of biomass or waste energy projects even more attractive, providing a bit more economic incentive for these projects. And that's definitely fueling more activity. Pulp and paper is another interesting sector where maybe carbon capture was not really considered, but they are seeing that there is a potential business opportunity with these carbon removal opportunities.

Perfect. Can you elaborate on your go-to-market strategy for CapsolGT and the market size seems large, how will you be able to capture a fair share of this market? And how do you see competition in this segment?

I'll say a few words about CapsolGT. We know that gas is still a very important source for energy in the world today and through the transition. And what we see already in construction and in the pipeline, still a number of gas power plants being built to address these energy needs. The challenge for the world and for society is how to make this as low emitting as possible. And with CapsolGT, it presents a new opportunity, a new alternative for these types of new builds. So we are just now reviewing the opportunity and the exact market size. But there are over 100 giga tonnes of gas power plants in construction. There's over 400 gigawatts that are in the pipeline. And we are working with our gas turbine providers to size that opportunity. But we think with our solution, lower CapEx and the ability to get carbon capture with the energy that's coming out of the gas turbine presents a very attractive option for that low-carbon gas power in the future.

And then Cato, you mentioned lower energy numbers in cement. Can you say something more about these lower energy numbers?

Yes, I can try. It is related a lot to the cement, although they might not have enough heat available to drive a complete -- for example, a complete amine process. There is typically excess heat available from the cement plant. And one of the very interesting things about our Capsol end-of-pipe technology is that we can utilize heat at very different qualities. We can use high temperature heat, we can use medium temperature and low temperature heat. So some of these studies that were mentioned here, we have found cement plants that can deliver heat in these various regions for us. And then we can integrate that with our CapsolEoP and significantly lower our electricity consumption. So of course, it will require some more integration with the plant to do that. But of course, for a 20 -- a plant that is going to operate for 20 years, you can afford some extra CapEx to reduce the energy significantly like we do. And by the way, just to say the 0.25 is for capture alone. But it is extremely low -- it is lower than what liquefaction would be alone. So it's a very low number.

Interesting. Thank you so much to all three of you.

Thank you very much.

Thank you.