How to visit Skive

I spoke to Quantafuel last week briefly. They said several things that they said before, but may not be fully reflected or understood by the market. I am posting below my interpretation of some of the comments.

Quantafuel set up a page with videos from Skive. Basically short guided tour of Skive. Recommended. Link below:

https://www.quantafuel.com/media#/videos

Our take from the conversation:

Skive

• Two lines are running close to full capacity – as stated in the press release last week.
• QFUEL have never reached that level of utilization before. Major improvement vs utilizations they achieved for example when they announced Proof of Concept. Anyone can compare the figures from the Proof of Concept press release with the utilization figures released last week.
• The other two lines should be in operation in the second half of November. Therefore, in December QFUEL should be running on all four lines.
• Automatization of the process is increasing. That will increase the efficiency and reduce interruptions.
• As Lars said on Q2 call Skive importance is in generating QFUEL knowhow that distinguishes QFUEL from its competitors. The next generation plants will be a lot simpler but would not be possible without Skive learnings.
• Skive should be self sufficient to run on pyrolysis gasses (NCG). That is a major step forward, that enables a positive cash generation in Skive. This issue was discussed in several analysts reports. Pareto in their report from 31/10/22 stated: “The upgrade (to NCG) is likely to significantly reduce the opex at Skive, which we believe will lead to improved margins and ultimately cash flow positive operations from Skive in December“
• I saw on Twitter a post by a Skive engineer that was asking his circle for electricity generator that can run on special gasses. That indicates that Skive may produce excess gasses to generate electricity.
• Skive has no problem to source plastic – there is a lot of plastic offered.

Saipem licensing deal is a big deal

• “Saipem is the best news ever – they are giving their brand name behind.”
• The market did not fully appreciate how important the deal is

Dubai is progressing well

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.