Quantafuel – Main Quotes from QFUEL Investor Call on 12/1/22

Quantafuel (QFUEL) had an investor roadshow for Pareto Securities and ABG Sundal Collier clients. The presentation is on their web in the section Presentations

There was a big interest in the presentation – more than 100 institutional investors attended the presentation

The main news from the call: “…we have the corrected feeding issues and restarted the plant today and anticipate achieving PoC shortly…”

The main quotes from the presentation by CEO Lars Rosenlov:

Skive update

  • turnaround is completed, CAPEX was as guided
  • cold and hot commissioning is completed
  • second line in operation earlier than anticipated
  • both lines operate stable at high capacity
  • chemical process is working
  • the failures we were experiencing were in the feeding system which is very simple system in comparison with the chemical part
  • we were very close to achieving the PoC before Christmas and again January
  • today we have the corrected feeding issues and restarted the plant today and anticipate achieving PoC shortly
  • Proof of Concept – definition is the toughest I have seen in gas and oil business
  • we reiterate our 12k tonnes production target for the year
  • we anticipace starting additional line each quarter this year

Kristianslund update

  • 20k mechanical recycling in operation
  • testing different chemical reactor than we have in Skive – Skive is heated by own produced gas, here we have electrical
  • we are seeing much better prices on outputs than we expected

Esbjetg (Denmark)

  • 160k tonnes per year capacity
  • Denmark recently announced 60% recycling targets, higher than the EU
  • Plant economics are very strong – unlevered IRR higher than 30%
  • Political landscape in Denmark is very favorable
  • we have potential investors in the data room as we speak
  • we are ready to move forward this quarter

Dubai

  • Signed MoU with ENOC and Dubal Holding1 for the development of large scale PTL plants
  • Strategically located sites evaluated

Sunderland (UK plant)

  • UK very interesting market, we have very good plot with excellent logistics location
  • 100% owned by QFUEL
  • project is now in permitting phase

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Disclosure: 

The goal of the blog is to provide investment ideas for further research. I/we have a beneficial position in the shares discussed above either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. The article does not represent investment advice. Please do your own research before making any investment action.

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