Christmas Letter to Shareholders 2023

This year we have made several important strides towards realizing our goals of large-scale production of fuel cells in Narvik, Norway. Our FCM400 is the world’s strongest fuel cell system specifically developed for marine and heavy-duty applications. The development of the unit is getting closer to an end, and the next steps needed is to ramp up the production at our facility in Narvik. Our local Narvik team is doing a great job progressing with the needed procedures in order to start installing production equipment in the factory and start the production of fuel cell systems.

Following that, we have assembled the first FCM400 system and installed it in AVL’s testbed for further testing and validation. Recent news showed successful progress of providing stable power output over time. Great achievement by the entire development team. Through the past weeks we have had many stakeholders come to Graz, Austria to experience the fuel cell module, this includes a big workshop with Yokogawa’s engineering team.

We are pleased to inform about progress in our two lighthouse projects. The first involves active collaboration with Implenia to power their construction site, and the second centers around the forthcoming deployments for the HyEkoTank project. Both projects are advancing steadily, with our team gaining valuable insights into the complexities of various components and system requirements. This ongoing learning process is instrumental in steering our efforts towards achieving our objectives in these critical projects.

Adding to that, we have supplied AVL with the four fuel cell stacks they need for their HyTruck project which we hope to see on the road around easter times in 2024. Two TECO stacks will be supplied per fuel cell module, the HyTruck will be powered with two specifically designed fuel cell modules for heavy-duty trucks and proving its power density and durability in the Austrian alps. Through 2023 we completed a comprehensive feasibility study to eagerly look into industrializing these fuel cell modules through our supply chain network, a study which showed us a positive result within the groundwork we have already performed.

Our sales pipeline can testify to our ongoing commitment to engaging with prospective clients, investors, and stakeholders in a global community to prove that together we can achieve solid emission reductions. Through 2023 we added another outstanding quotes of approx. EUR 800 million to our potential pipeline, increasing the overall active quotes to well over EUR 1.3 billion.

It does nevertheless remain uncertain how many of these projects which will materialize however it is undeniably a testament to the growing global interest in zero-emission power solutions and confirms that fuel cells are definitely a key technology for achieving climate targets.

In our collaborative endeavors, TECO 2030 has successfully engaged with prospective clients, investors, and partners, significantly expanding the reach of our FCM400 initiative. These interactions extend not only within the global shipping community but also encompass a broader spectrum, including various sectors within the heavy industry. This development marks a pivotal step in our strategic expansion and underscores our commitment to fostering meaningful partnerships across diverse industries and expanding our presence as a leading fuel cell supplier.

In the last few months, we've seen a lot of good signs from different types of investors. It's noteworthy that the investment landscape has evolved over the past 12 months, presenting a different pace, resistance and uncertainty compared to the unique monetary conditions we saw during the pandemic. We're adjusting to this new situation and believe we can handle it well.

The year 2023 has been a period of dynamic engagement for TECO 2030. We have participated extensively in various global exhibitions, conferences, and hydrogen summits, demonstrating our unwavering commitment to fostering a cleaner, carbon-free future.

As we transition into 2024, we are prepared to continue leveraging our strength, flexible and innovative capacity to conquer challenges and lead sustainable initiatives around the world.

With this forward-looking perspective, I extend heartfelt wishes for a restful holiday season, a merry Christmas, and a prosperous New Year to everyone. I enthusiastically await the opportunities and developments that 2024 will bring.

Warmest regards,

Tore Enger