Metacon, through its subsidiary Metacon SA in Patras, Greece, has received a 0.2 MEUR (~2.3 MSEK) order for a technical feasibility study from a US-based global leader in chemical manufacturing. The study will assess the suitability of Metacon’s HIWAR reactor to improve the efficiency of specific chemical production processes. Originally developed for hydrogen production via catalytic steam reforming of biogas, ethanol, or ammonia cracking, the HIWAR reactor will be adapted to meet the project's specific testing parameters and conditions.

The order is an interesting first step to open a potential new market area for Metacon. Should the study be successful, it could allow Metacon to diversify its demand sources, expand its target markets and support reaching commercial scale. The order in itself has limited immediate commercial value but supports our estimates, which assume additional orders in 2025. Additionally, it provides another potential demand source for reaching our long term revenue growth estimates. As the evaluation is still in its early stages, it does not warrant any changes to our current estimates or recommendation at this time, but we are following news flow on the study and potential future orders from the area.

A potential new market for Metacon’s technology

While the order value is relatively modest at this stage, it supports our current estimates, which include expectations of high revenue growth with revenues growing from around 40 MSEK in 2024 to 667 MSEK in 2026. More importantly, the order highlights the adaptability of Metacon’s technology beyond hydrogen production. This expands the company's strategic optionality, potentially opening new revenue streams and contributing to a more diversified and resilient business model. Additionally, although the customer is unnamed, it is described as a “global leader in chemical manufacturing.” If accurate, this adds credibility to Metacon’s technology and signals interest from a major industrial player. However, we acknowledge that it is difficult to assess the economic value of this potentially new market until concrete commercial applications are developed and brought to market. Therefore, we view the technical feasibility study as a long-term option as part of the company's value, and do not make immediate changes to our estimates and valuation.