Co2 Capsol AS

OSE:CAPSL

Earnings Call Transcript 2023-Q2

[Jan Kielland, executive]

Good morning, and welcome to Capsol Technologies and our quarterly presentation. I'm Jan Kielland. I'm the CEO of the company, and today's presenters will be including myself; Ingar Bergh, our Chief financial Officer, and Cato Christiansen, our Chief Technology Officer.This is Capsol at a glance. We have shown this slide before, but there are changes. And again, what we say here, our mission is really to accelerate the world's transition to a carbon-negative future. We have a highly competitive technology. We see that and we experience that every day with increased interest in the market. We have a very safe and good capture solution, which is extremely cost efficient and is well proven, is mature. We see that from our own experience with the demonstration units, but also this chemical process has been available in the industry for more than 70 years.We have now a proven traction in cement business, in biomass, energy-from-waste and we have strong interest for gas turbine solution that we have developed over the past 6 months. We're licensing directly to our customers or through our corporation with partners. And we have based our technology on patents. We are well protected. We have 11 patent families, of which 8 has been granted. We have our headquarter in Oslo and an office in Berlin, Germany. If you look to the map to the right in the dark colors, that's where we have market leads. The encouraging part of this is, of course, we see that emitters on all continents are concerned about carbon capture and the climate. They want to do something about it, and we are confident that we can help them, solve them, get their own way to have good projects with our technology.So, some of the highlights from this quarter. We now have a pipeline of 135 active leads, with total emission of 42 million tonnes of CO2 every year. This volume is equivalent to the total emission in Norway. So it's a significant volume and it's about 30% increase since the last quarter. We have signed up the fourth campaign for our demonstration unit. It will take place in Germany at the company EEW's plant, waste-to-energy plant. And we plan to get started during this quarter. And we've seen strong interest in our gas turbine solution, CapsolGT.We are developing our technologies. This is the latest. It's actually there to solve a major issue for the industry, particularly the oil and gas industry. It's difficult to capture CO2 from gas turbine at low cost. And we know that the US market is becoming more and more important, and also the UK market is very important. We have now dedicated people working in those markets. And we have focused on our capability to handle all the requests we are still receiving. So, we hire people, but we have cost discipline, but we're also using our partners to do work. We get more and more paid engineering. We get more and more sales engineering. So in addition to staffing up -- control way of staffing up, using our partners, we have to become more efficient. And this is what we're working on every day.In all, I believe this quarter has been very, very good for the company, but there's a better. This has really been the hottest July in human history. This is another wake-up call for climate action. We see the -- to the right on this slide in red, you see the increasing temperature this year. It's very, very disturbing. And we have now 135 active leads in our portfolio. All of these companies are deeply concerned of what's going on, and I think that goes for everyone today in every continent that the climate change is concerning. So, there needs to be a step change in carbon capture and storage.This slide is based on numbers from Rystad, where we see today, we capture around 60 million tonnes, 70 million tonnes of CO2 every year. In 2050, that number needs to be almost 8 billion tonnes a year. This is an enormous challenge for industry and it's an enormous opportunity for us as a company. And we see, assuming that all these licenses, all this technology, all these projects came to us 100% with our offering of EUR 7 per tonne to EUR 12 per tonne installed capacity, this market 100% represents EUR 60 million to EUR 80 billion. It's phenomenal numbers. We are targeting a market share of 5% to 10%. So, there will be other players, other technologies, but I think the room for most of these companies and technologies that's being offered to the market today.We have a very cost-efficient technology viable for all emitters. Cost is really the issue here to bring down the cost, and the bulk of the cost is associated with energy costs because it's energy-intensive to capture CO2. That's why we focus on bringing down the costs, bringing down the energy consumption. And today, we think we have a very competitive solution and we know that from the interaction with clients. The operational risk is low. We know this from history. This solvent has been in operation for capturing sour gases for more than 70 years. We have our own experience. This technology works fine.Our plan can capture more than 90% of the CO2, and it's safe and environmentally friendly. It's based on potassium carbonate. Well, it's a non-harmful chemical. Many of the projects we're working with, they are in densely populated areas. So it needs to be safe. It needs to be environmentally friendly. So, we have now in place a technology platform. This is also one of the reasons we changed our name to Capsol Technologies. We have the small demonstration units where we still see huge demand. It captured up to 700 tonnes of CO2 every year.The main reason for offering that to the industry is to help our clients to de-risk, to understand, get familiar with carbon capture. It's new to them. And hopefully, they will fast track their projects. And hopefully, they will also select our technology. We have Capsol End-of-Pipe, which can capture from almost any type of industrial emitter. We are targeting the larger emitters with more than 100,000 tonnes of CO2 per year. And we have a commercial model that we asked for a licensing fee in the range of EUR 7 per tonne to EUR 12 per tonne installed capacity. This means a plant of 1 million tonnes, we will get between EUR 7 million and EUR 12 million. And to the right, what we have developed over the past 10 months to 12 months is what we call the CapsolGT. It's capturing CO2 from gas turbines.There are smaller turbines that releases 12,000 tonnes of CO2 every year and to the big ones, releasing 400,000 tonnes of CO2 every year. And here, we see a potential for higher revenue than for End-of-Pipe solution. We have seen a huge response, particularly from the oil and gas industry, and there are thousands of these turbines in the US and Europe. So, we are focusing on large industries with high-carbon capture and storage potential and, of course, in collaboration with our partners.Cement industry, we've seen increased traction over last quarter. Cato will come back to this in his presentation. Cement is the largest single emitter in the world, stands for 7% to 8% of global emissions. And it's hard to abate these emissions without carbon capture and storage. Biomass or bioenergy, Stockholm Exergi is one example. They recently announced a letter of intent with the Italian company. This is very positive because it showed that the project is moving forward. Bioenergy, if you're burning biogenic material as wood, it's accounted for 0 emission. So if we're able to capture that CO2, you will get booked negative emission. And this is so important for the path to reach net-zero in 2050.Energy-from-waste, this is already an industry that do a lot for the environment to reduce these emissions. But if adding on carbon capture those plants, they will capture the biogenic CO2 and the normal CO2 from the waste, which also lead to reduced and negative emission to some extent. So it's very positive, and the market is huge. In Europe, we believe it's more than 400 plants that can benefit from having a carbon capture unit into the plant. So, this will be a huge impact.And of course, gas turbines. We believe natural gas is expected to be the longest living hydrocarbon-based energy production. So therefore, it's super important to have a capture technology that can help this industry reduce their emissions. And we also expand into new industries. And I'm sure on the next quarterly presentations, you'll hear about new industries that we are working on. We do this with our partners. We are very happy with our partnership, but we will add on more partners in specific geographical areas and also to make the outreach even stronger than we have today.So, we are targeting a significant long-term value creation with a scalable licensing model. Our strategic focus is technology, it's product, it's sales and marketing and engineering and implementation. All of that needs to go hand-in-hand. We have to develop our technology to be in front to become a market leader within HPC. And also, we have to develop our products. We see this CapsolGT, which so far have been very successful, but we will develop new products to help our clients reduce their emissions. And of course, what we see the incoming requests today, we have to team up sales and marketing efforts. We have to be stronger in some of the markets. We now have a good position in the European market. We are positioning our sales in the North American market. But we also have activities in the Middle East and Far East. This region will come on strong, but priority first, Europe, North America. And of course, we have the engineering. We have to match our engineering capacity with the incoming requests from our clients and to support them. We do that by becoming more efficient, but we also do that with our partners.So where are we in 2025? We hope that any decision made for carbon capture, when they make the decision, they should be aware of our technology. And we have ambition to really become 50% more efficient when it comes to the time we need to do sales engineering and FEED studies and feasibility studies. And we want to position ourselves as top 5 with our technology globally within the space of carbon capture.In 2030, we are targeting a market share of 5% to 10%, with our licensing model of EUR 7 per tonne to EUR 12 per tonne installed capacity. This will give a pre-tax profit of 40% to 60%. We think this is doable. We think this is realistic, but we need to do the things we said on the technology product and blah, blah. We have to have strong partners. We have to work closely with them, but we also need to have political support and we need to have support from the industries we're serving.And this was my introduction to this presentation. And Ingar, you can take over for the operational review.

[Ingar Bergh, executive]

Thank you, Jan.So, I'm going to take you through the operational review for the quarter. The last couple of years, Capsol Technologies has spent a lot of time and resources, making sure that our company and our technology is established in the market. And now we are really starting to reap the rewards of all that good work. What you see on the slide here is our commercial pipeline. We use this to show the progress in the company from quarter-to-quarter. It's divided into several stages. You see the first stage. It's just sales engineering. This is typically where we have signed an NDA with a client for a specific project. We do initial engineering for the project to show high-level costs and performance.In this part of the pipeline, we have seen an increase of about 7 million tonnes annualized volumes, which is quite impressive for one quarter. The next phase of the pipeline is what we now call engineering studies. This is more mature projects where we do typically from a feasibility study to a pre-FEED study. And in this part of the pipeline, we have added on 3 million tonnes of volume in this quarter.The next stage is what we have called engineering to build, often called FEED studies. This is where you do all the work required to make a final investment decision and start building your project. In this stage of the pipeline, we have our Stockholm Exergi project, which is really done with the FEED study and we are awaiting the final investment decision. In addition, we have what we call CapsolGT and in this context, fast-track. As Jan mentioned, these mobile demonstration units are really designed to help our clients fast-track the project development. And we have 4 projects of demonstration campaigns signed up for CapsolGT. We added one this quarter with EEW in Germany.So all in all, this brings us to a total growth in the pipeline of 30% in one quarter, which is on itself very impressive. But I would say even more important in the engineering studies, the more mature part of the pipeline, we have actually added 300%. And we will see, as we go forward, that the things we are working on are going to progress and bring more and more maturities. So kudos to our business development team and our engineering team for this great effort.End of last year, we saw Germany, Europe's largest industrial economy and largest emitter of CO2, really sort of turnaround on CO2 capture. And the latest proof of this is that we, in Q2, signed a contract with EEW to deliver a demonstration campaign with our CapsolGo unit at one of their waste-to-energy plant. You can see a picture of the plant here on the slide, where they are actually doing the ground preparation work for our unit coming in and we expect to start operation. But the company has 17 plants across Central Europe, most of them in Germany, which together represents about 5 million tonnes of CO2 emission. And this is the price if we do this well. And with our -- opening our office in Germany in Q1 and the progress in Germany is really encouraging with this CapsolGo demonstration campaign.Now, all our CapsolGo demonstration units, including our new liquefaction units are going to operate in Germany. So it's going to be a very important market for us in Europe.Stockholm Exergi, call it our flagship project, capturing 800,000 tonnes of CO2 per annum, largest in Northern Europe, twice the size of Brevik, supported by their European Union and using our technology. This quarter, they signed a contract with Saipem to build the plant based on our technology. This is an important milestone to progress towards final investment decision, which is when we get paid on our contract and we still expect this to happen Q1 2024.One of the beauties with our commercial model technology licensing is that we can be a global company without necessarily having a big global organization. We can do a lot of business from Norway. However, we do see that focusing on key market pace off and we will continue doing this. In Germany, we opened our first foreign office in the largest emitter in Europe. We see that, that has brought a lot of incoming in our sales pipeline and all our CapsolGo demonstration units currently in Germany.In the UK, we have hired dedicated personnel on the business development side, sitting in Norway, but focusing in the UK specifically. We see also this ping of several projects in sales engineering and one large cement project expecting to start feasibility studies this quarter, meaning Q3. The US, the world's definitely largest potential carbon capture market. We need people on the ground to be able to service that market. And in the second half, we expect to open a US office. We are also negotiating our first CapsolGo demonstration campaign in the United States to make sure we are seen on the ground there and get an entry into that market.So finally, a few words about our CapsolGT solution. Jan has already covered this somewhat. It's a solution to capture CO2 from gas turbines, open cycle gas turbines, which typically, you see a lot of deployment in industry at large LNG plants, for instance, like Melkoya up in Northern Norway in pipeline compression, in electricity production. Our solution, we expect to be a real game changer for this industry.Our technology inherently is very good at capturing CO2 from flue gases with high temperature. And these gas turbines have a 500 centidegrees out of the chimney, which we can use to make it a very, very efficient capture process. The way to go to market for this, we have identified to be together with the large gas turbine providers. And we are progressing in our dialogues to find the right partner or partners to bring this to the market. So, this will be a very exciting space to follow going forward, and we believe the potential here for revenue per unit capture is higher than on our other solutions because it is so competitive relative to alternative technologies.So with that, I will give the word to our Chief Technology Officer, Cato.

[Cato Christiansen, executive]

Well, thank you, Ingar, for that introduction.First of all, I would like to say that we certainly believe our technology is a competitive offer for many emission sources such as biowaste, biomass, waste-to-energy, large industrial emitters and so on. But this quarter, I would say, we have spent quite some time on engineering for cement plants, and we really see that, that our technology is a perfect match for capturing CO2 from cement.So first, I would like to say a little bit about why CCS is so important in the cement industry. It was mentioned earlier by Jan that the cement industry is a very large emitter. It's probably the largest industrial emitter of CO2. It accounts for approximately 8% of the global CO2 emission. And cement is also really the -- or literally the foundation of a green transition. You need cement for wind plants, for solar plants, for infrastructure, everything that is needed to build the green or to reach net-zero.What's also special with cement is that, say, 2/3 of the emissions from CO2 emissions from the cement industry really comes from handling the raw material that's used. Only 1/3 of the emission comes from the energy use. So, you can electrify or you can do fuel switching. It will only take you 1/3 down. You're still left with 2/3 of emission. And the only really viable solution for those emissions is carbon capture and storage.That's why also we see that if you look at estimates, around 2030, it's estimated that around 30% of the CO2 capture projects could be in the cement industry. And after 2030, the Global Cement and Concrete Association stipulates that it's required with one capture plant per week in the CCS industry to reach net-zero. So the potential of CCS in the cement industry is obviously extremely large.So why do we believe then that our technology is such a good match for this industry? Well, there are several reasons. First, I would like to say it's a very flexible and easy to integrate technology. So the cement producer can continue producing the cement, we can construct the plant next to it and hook up and capture in a very short time. So it's minimal production downtime, which is important.Can we run our technology? The Capsol End-of-Pipe technology, can we run on electricity-only, renewable electricity only? We don't need to build another big heat plant or heat and power plant to produce the heat needed for the capture process. Another thing is that the CO2 concentration in the flue gas from cement is between 15% to 20%, which is a rather high concentration. And our technology, it's a major advantage to have such a high CO2 concentration. And I'll talk a bit about that later.So for the engineering work we have done this quarter, we see that for most of the plants we have been working with, we can reach energy numbers as low as 0.6 gigajoules per tonne of captured CO2, and that is electricity use. Compared to traditional amine technology, that's quite good. And amine technology will normally use between 2.5 gigajoules and 3.5 gigajoules of heat per tonne capture. So the 0.6 gigajoules that we reach is approximately 170 kilowatt hours per tonne.So why is it so beneficial for us with high CO2 concentration? And for that, I would like to look at some differences between the traditional post-combustion absorption technology use such as amines and the CapsolEoP. The traditional post-combustion process normally uses only heat or more or less only heat as the energy to do the capture. All that heat is used to regenerate the solvent. And this heat consumption is really a weak function of the CO2 concentration. It more relates to the amount of CO2 that you capture. So if you're capturing 1 million tonne, you need to boil off 1 million tonne of CO2, and that's where all the heat goes. And it doesn't really matter that much if the flue gas concentration is lower or higher.If you look at the CapsolEoP on the other hand, the energy requirement is electricity and a lot of that electricity goes to pressurizing the flue gas. And that pressure is a very strong function of the CO2 concentration, which means that if you go to a high CO2 concentration, we need much lower pressure for our process to be efficient. So, we can lower the pressure and use much less energy to compress the flue gas.So if you look at these curves that I've included in the presentation, you see the traditional process where you need mainly heat. You might reduce your energy or your heat consumption about 15%, 16% going from 4% to 15% to 20% of flue gas concentration. On our technology, on the other hand, if we go from 4% to 15%, 20% where the cement is, we might -- we reduce our energy consumption with as much as 70%. So it's a major benefit for us. And as you all know, the energy use is the main operational cost of CO2 capture.One other thing is that typically, the cement plant will not have all that heat available for a traditional process. So, you will need -- you can use some of the heat, but you will need to build an extra heat plant. With our technology, you don't need that. But we can also use the heat available to reduce our energy consumptions even more. And we really see now that more and more of the cement industry is getting their eyes open for our technology and seeing exactly that this might be a good solution for them.So right now in our portfolio, we have 3 projects in the engineering study phase. So, there's one project, about 700,000 tonnes where we have been shortlisted as a technology provider, and we will start a feasibility study in Q3 this year. Another study for a 1 million tonne plus plant, we are currently providing input to a third-party, doing a feasibility study for them.And the third one, we just started a feasibility study in July and which has been going on during summer and is still ongoing. In addition to the above engineering studies, we also see a lot of traction in the sales engineering pipeline. So the last 2 months, we have done 4 new projects in there, accounting for approximately 6 million tonnes of CO2. So definitely, we see a lot of traction in the market for this.So to sum up, we believe we have a very good offering for cement industry; easy, flexible technology to integrate; low energy consumption and in addition to, of course, the traditional things that -- with an environmentally-friendly solvent.Yes. With that, I would like to welcome back Ingar to present you with some numbers.

[Ingar Bergh, executive]

Thank you, Cato, for that insightful insight to the cement industry.And so I'm going to bring you through the financial review for the quarter. As highlighted earlier in the demonstration, we are seeing a lot of demand for our technology and services. This is, of course, overall, very, very positive, also bring some challenges. So during this quarter, we have had much focus on how do we ramp up our engineering capacity to meet this demand. And we are doing this mainly by 3 things. One, of course, hiring more engineers; two, by investing into systems and procedures to make sure that we can do more with less; and three, working with our partners to make sure that they can support us with muscle and engineering capacity to meet our client deliverables.In the quarter, we booked revenue of NOK 5.2 million, up 24% from last quarter. We had a pre-tax profit of minus NOK 15.2 million, and we secured additional debt financing from DNB for our CapsolGo demonstration and liquefaction program to make sure we are fully funded on our current business plan. Revenue in the quarter was driven by one CapsolGo demonstration on contract in Germany. The cost was mainly related to personnel and through commercial and technical services that we buy from third parties to be able to deliver to our clients.The next quarter and half year, we expect to see a revenue ramp up as the second CapsolGo unit comes on contract in Germany and our new liquefaction unit also comes on contract in Germany, hopefully, both in Q3 this quarter. And we will also see additional revenue coming in from the engineering studies we have secured. And in the medium to long term, of course, start to see revenue from our licensing. And this is where the substantial, the real revenue will come from.With this, we expect to be able to breakeven on our organic business plan in 2024. We are maintaining a strong capital discipline. On the right side here, you see the waterfall. This shows the cash flow for Q2 2023. It shows that we had a total cash burn of about NOK 5 million. We had the revenue booked in the quarter of NOK 5.2 million, as previously mentioned. In addition, we secured prepayment from one of our clients to also about NOK 5.2 million, bringing the booked revenue plus the prepayment to about NOK 11 million.We had some higher than average quarterly costs -- operational costs. This is mainly due related to 3 things. We had our variable compensation payments for last year paid this quarter. We had hiring costs for headhunters, et cetera. And we moved into new offices to facilitate our growth, which also had some associated costs. We do have a comfortable financial position. At the end of the quarter, we ended with NOK 34 million in cash.Over the next 12 months, we have a committed revenue, committed investment and with the current burn rate, we'll end up with a buffer capital of about NOK 30 million. We expect to bottom out on cash about the end of this year at about -- between NOK 10 million and NOK 20 million. We do expect both revenue and cost to increase relative to this graph. However, our cost is quite flexible and it's scalable with commercial activities.So a few concluding remarks before we open up for Q&A. In the long term, Capsol Technologies has the ambition to build a leading global player providing CO2 capture technology. We want to make point source -- we want to make carbon capture from large point source emitters, more affordable and widely available to more companies, which is essential if we're going to meet our goals and the global goals. We want to be top 3 in our 4 core segments. And we want to achieve a market share of between 5% and 10% globally, with a licensing revenue of between EUR 7 and EUR 12 per tonne and a pre-tax profit margin going from 40% to 60%. And we need to be present in some form or another in all the major carbon capture markets.So, what should you watch out for the next 6 months to 12 months? What would be considered value triggers? One is that we are awarded more engineering studies. This shows that companies really believe in our technology and is willing to spend time, resources and money to see if this technology is the right thing for their project. Also, new awards of CapsolGo demonstration projects, making sure that our technology is demonstrated at more and more facilities, which is a big generator.And of course, licensing agreements. This is where our real revenue, our bread and butter will be. Signing of licensing agreements will be a big value trigger. The same with project final investment decisions, which is typically when we start to get paid on our contracts or licensing contracts when the project makes an investment decision to go ahead. And then finally, to sign up new partnerships, to make sure that our technology is available to as many people and companies as possible.Finally, why should you invest in CO2 Capsol? Carbon capture is absolutely required for the world to be able to reach its net-zero goals by 2050. Over this period, we see a potential market in technology licensing only of about EUR 60 million to EUR 80 billion. We have a technology that meets the challenge. It's safe, it's energy efficient and it's mature. As one evidence of this, we have been selected for the largest project in Northern Europe, Stockholm Exergi. And we are seeing now an accelerating demand from projects all across the globe to evaluate and use our technology. And finally, we have a business model, which is designed such that it's scalable and able to capture value from this vast market that we see coming with a target of a 5% to 10% global market share by 2030.That was it from me. And now, I would like to invite Cato and Jan for Q&A, and then we'll answer any questions there might be.

[Tone Bekkestad, executive]

Thank you so much to all the 3 of you.I have the first question here. I think we'll go to Ingar. It says between Q4 2022 and Q1 2023, you increased your target from 5% market share to 5% to 10%. What is the reason for this? And is it realistic that Capsol should have a license for up to 10% of the world's CO2 capture?

[Ingar Bergh, executive]

Well, the reason for this is that we wanted to, based on what we see incoming, we wanted to show that ambition that 5% is one target, but we believe it's viable to actually reach as high as 10%. It's a very hairy goal, but we need hairy goals. And [Technical Difficulty]Okay. Should I start from the start again or? Okay. So in essence, hairy goal, which we're doing everything we need to reach.

[Tone Bekkestad, executive]

Okay. The next question goes to Jan.Your pipeline growth is accelerating this quarter, both for projects in sales engineering and for paid work. Is this a reflection of accelerating demand for CCS in general, accelerating demand for Capsol offering, in particular or both?

[Jan Kielland, executive]

I think it's both. When we had our Capital Markets update in May, we saw the increasing activity by 50% every year. We experienced now 100% in increase. So, I think we're ahead of the curve, but we don't have control over our competitors. So, we believe we are in a pole position to benefit from this market. We also believe that our partners will see more activity. And of course, we take this as a very, very positive.

[Tone Bekkestad, executive]

Next question is, is Capsol's technology suitable for carbon capture on Melkoya?

[Jan Kielland, executive]

We don't know. We haven't been involved in that project and our decision is made. So it's kind of a hypothetical question. But in general, we have developed our CapsolGT to handle emission from gas turbines, especially open cycle gas turbines, and that's what they have in Melkoya. But we are in discussions with a number of opportunities around the world. So, we hope that this will happen, that we can use this on a real scale and that's what we're working on. But for Melkoya, it's difficult for us to comment since it's already been decided and we haven't been involved whatsoever.

[Tone Bekkestad, executive]

Next question. In your Q2 highlights, you mentioned an increased focus on expanding engineering capacity going forward. Does it mean that you're sold out? And should we expect this to be a limiting factor in your sales pipeline growth in the second half of 2023?

[Ingar Bergh, executive]

Yes and no. It's a challenge.But we are, as I mentioned in the presentation, we are doing several initiatives to make sure this is not a limiting factor. It means to an extent that we are even more than before a bit more selective in what we actually do work for. And of course, putting up payables, making sure that the projects that pay for engineering get priority because they probably are more likely to succeed. So not a limiting factor, but impacting and challenging.

[Tone Bekkestad, executive]

One more question. You said that your Board will make a decision on uplisting to the main list of Oslo Stock Exchange during Q3 this year. What is the rationale behind a potential uplisting?

[Jan Kielland, executive]

Yes. That release was sent earlier this year, this message. And we know that by more international exposure, more traction in the market, more activity, this justify being on the main board. But also, we see investors from -- that require us to be on the regulated market. So all in all, we think we have to take a decision on this. We are preparing for it. So, we can take -- the Board can take the decision. And we sent out this announcement that we do changes to the Board. These are 2 things. Of course, we are growing internationally. So, we want to add on the right capacity and take competence at the Board level, but also to fulfill the requirement for being listed on the main board. And in addition, we also will propose to the shareholders to convert from AS to ASA, which is a requirement. But still, this is a decision that has to be made by the Board. And timeline, it could be accelerated, do it within fourth quarter, but it could also be done early next year. But this is -- well, more than that, I can't really comment.

[Tone Bekkestad, executive]

There's also a question here regarding CapsolGo in the US. So, you mentioned a CapsolGo contract in the US. Would this be a breakthrough in this market? Could you elaborate on this project?

[Ingar Bergh, executive]

I would say so. It would be our first sort of asset on the ground in the US, and we have found that the CapsolGo units are great promotional tools in addition to progressing the actual project they're on. They generate a lot of media attention and attention in general. So, this is something that we see as an essential part of our entry into the US is to make sure that we have a CapsolGo demonstration campaign there quite soon.

[Jan Kielland, executive]

And one comment, the way we work, we believe this will happen. So, we have done the engineering work necessary for building a unit and put it into the US market. It's different specifications. So, we have done the work. So, we are ready for taking that decision when we have the right opportunity.

[Tone Bekkestad, executive]

Super. Thank you very much. That was all the questions that we have received.

[Jan Kielland, executive]

Okay. Thank you all for listening.