Capsol Technologies (CAPSL) Investor Update summary

Business model and financial performance

• Operates a capital-light technology licensing model with zero CapEx risk and high targeted pre-tax margins of 40%-60%.

• Revenue is generated through paid feasibility and engineering studies, demonstration campaigns, and license agreements, with a typical 12-24 month cycle to final investment decision (FID).

• Achieved a 2.75x increase in annual revenue to NOK 94.2 million, with the first license revenue booked in Q4 and a quarterly profit of NOK 3.2 million.

• License fee typically EUR 10-15 per ton CO2 capture capacity, paid over the construction period.

• Operating expenses for 2024 totaled NOK 124.9 million, with a current run rate cost base of about NOK 75 million.

Technology and project pipeline

• Proprietary hot potassium carbonate (HPC) solvent enables 20%-60% lower capture costs compared to amine-based solutions, with proven safety and lower degradation.

• Carbon capture technology offers 90-95% capture rate and >99% CO2 purity, with low energy consumption (0.5-1.5 GJ/ton CO2).

• Over 17,000 hours of demonstration experience and the largest team of HPC expertise for post-combustion applications.

• Mature project pipeline exceeds 17 million tons of annual CO2 capture capacity, representing a 45% growth year-over-year and over EUR 200 million in potential licensing revenue.

• Key projects include Stockholm Exergi (flagship, 800,000 tons/year), Holcim, SUEZ, and several major European utilities and cement producers.

Commercial traction and project milestones

• Secured new feasibility and pre-FEED studies with major players in cement, utilities, and energy-from-waste sectors.

• Stockholm Exergi BECCS project reached FID after EUR 1.7 billion in government support.

• First licensing revenue recognized from Stockholm Exergi, validating technology and business model.

• CDR sales to Microsoft and Frontier for future carbon removal credits.

• Three license agreements signed, with visibility on 13 million tons of potential FIDs in the next three years, mainly in Europe.