Kyoto Group – Kjetil Bohn investment announces first sale of its thermal battery

When Kjetil Bohn left Quantafuel, he stated he wants to focus on his other investments. One of them is Kyoto Group (KYOTO), where Kjetil is one of the largest shareholders. Yesterday KYOTO announced its first commercial contract for its thermal battery.

KYOTO market cap is 191m NOK. The company reported cash position from 1H21 of 157m NOK. It means that 80% of the market capitalization is covered by cash.

Fearnley issued an analyst report on the event. Its price target for Kyoto is 90 NOK, the current share price is around 25NOK. Plenty of upside.

I enclose below Summary from the Fearnley Securities Report on KYOTO

Contract Signed for First Heatcube Thermal Battery
What’s new: Signs contract with one of three coal fired power plants in Denmark
Our take: Positive to see the project moving according to schedule and a customer with potential strong appetite for additional Heatcube’s

KYOTO announced on Friday after close the signing of its first commercial contract for its Heatcube thermal battery solution. The battery is expected operational from early 2022 and will be a under a battery leasing agreement (BaaS) with Aalborg Forsyning in Denmark. The location of the project is at Nordjyllandsværket power plant (one of three central coal fired facilities in Denmark today) as a commercial demonstration unit. Further, the project is part of a program with Nordjyllandsværket and Aalborg Varme to test and introduce new clean energy solutions and phase out coal. The thermal battery will provide heat to the local district heating system under a leasing contract where the energy input will be electricity from the grid.

The manufacturing process of the Heatcube has started and the specific unit will be configured with 18 MWh of storage capacity and 4 MW discharge load (compared to the standard design of 20 MWh/5 MW). The system will be delivered in 20-feet containers onsite, ready for integration. Notably, the modular design enables easy scale up on site by adding additional modules. Aalborg Varme sees great perspectives in the Heatcube, but first want to verify that it works with district heating. The Danish government has set a clear energy policy and a clear ambition to phase out coal from the power supply by 2030 and to phase out coal at Nordjyllandsværket in 2028.

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