Quantafuel can report that the third production line at its Skive plant was
completed on 30th of June and has over the last days started commercial
production. Ongoing operations are currently facing increased costs of operation
and lower margins.
"The Skive plant is moving steadily towards completion of all our four
production lines with the third production line now in operation. The onboarding
of the fourth production line is targeted for early fourth quarter," says
Quantafuel's CEO Lars Rosenløv.
The third production line is the first heated with gas produced in the pyrolysis
process, i.e. NCG or non-condensable gas. The remaining lines will be upgraded
this autumn to run on NCG as well.
"Running on NCG minimises the demand for external energy and provides
significant cost savings for Quantafuel," he continues.
Pressure on operating costs
"Our focus for the Skive plant has been on increasing production capacity and
stable production. We are exposed to prevailing general market conditions with
pressure on key cost drivers like natural gas, electricity, feedstock, as well
as disposal costs. We are also exposed to a contractual fixed oil off-take price
at the moment but are discussing this with our off-take partner. We will
renegotiate prices and take other improvement measures maintaining long-term
operating margins in line with our guiding," says Rosenløv.
The focus on high regularity and stable throughput at Skive continues, as well
as the ability to process a variety of plastic qualities. The Skive plant is the
first of its kind. Quantafuel processes plastic from mixed household waste,
including waste contaminated with biological material. The Skive plant continues
to produce oil within product specifications, confirming Quantafuel's chemical
recycling process.
For further queries, please contact:
Lars Rosenløv, CEO +47 93018040
Kristian Flaten, CFO +47 95092322
About Quantafuel | https://quantafuel.com
Quantafuel is a technology-based energy company converting waste plastics back
into low-carbon synthetic oil products replacing virgin oil products. Quantafuel
is establishing, operating and owning dedicated plastic-to-liquid (PtL) plants
and plans to establish several plants throughout Europe and beyond.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Kristian Flaten, CFO, 5 July 2022 at CET 08:00.