Annual report 2018
2018 was a very good year for Azelio in which we took important and significant steps towards our ever-approaching commercial breakthrough. We carried out a technology demonstration in June which generated global interest with enquiries from 52 countries for a potential order value of SEK 50 billion. This clearly demonstrates the enormous demand for sustainable electricity production and storage at the right price. With our solution we can make a big difference both for the environment and for economic growth, by replacing polluting alternatives – especially in markets where access to an electricity grid or a stable connection is lacking. Assess to electricity is essential for development; access to renewable electricity is essential for sustainable development.
During the year Azelio made excellent progress in the commercialisation process in line with the goals in our business plan. Among other things, we significantly strengthened our organisation by securing key talent to take the product to market and industrialise the Company.
Close partnerships with strong and established actors in renewable technology have enabled Azelio to develop a globally competitive product and to challenge the existing energy market. Intensified cooperation with Masen, which is responsible for renewable energy solutions in Morocco and also advises large areas of Africa, is an enormous boost for Azelio. The agreement involves joint development and design processes as well as verification of Azelio’s full-scale project to be built at the world’s largest concentrated solar power plant in Morocco by the end of 2019. Within the framework of the agreement Masen will also demonstrate and introduce Azelio’s solution to potential customers on the African continent.
June was a very intense month during which we changed our name from Cleanergy to Azelio, SEK 105 million in proceeds were raised for the Company through an oversubscribed private placement and the storage solution was demonstrated to the public in Åmål. These successes have energised the Company. We were able to present our technology and attract attention and a good response globally. The enquires from a total of 52 countries have evolved into ongoing dialogue aimed at a controlled market launch, with small market installations planned for 2020 followed by larger volumes in 2021.
The IPO and listing on Nasdaq First North in December raised proceeds of SEK 242 million before issue costs. Despite uncertainty on the stock market the IPO was a success and the Company gained more than 2,200 new shareholders including a number of strong and long-term institutional investors.
The transition to an energy mix dominated by renewable alternatives is picking p speed as the economic benefits become more obvious. The environmental factors have been widely reported for a long time and we are being constantly reminded of the consequences of emissions from fossil sources for the environment and health. A short-sighted attitude focusing on the immediate costs and not on the long-term consequences and costs has benefitted fossil fuels, but this reality is now starting to change. This has a lot to do with the introduction of efficient ways to store renewable energy and thereby neutralise the weaknesses of energy sources with intermittent production that are directly dependent on the sun and wind. Most of the solutions today are large-scale ones. But there is also a great need for distributed alternatives on a smaller scale to meet the needs of the 1.2 billion people who lack a power grid connection, or even more who have a weak or unreliable grid connection. These people currently typically depend on a diesel generator as reliable baseload power. There is great potential here and an enormous demand for sustainable and cost-effective solutions. This is the target market for Azelio with its solution for thermal energy storage and sustainable electricity production 24 hours a day. Azelio provides an alternative distributed and sustainable baseload power source for a significantly lower cost than diesel-generated electricity.
Jonas Eklind, CEO
Inquiries from a total of 52 countries have been developed into ongoing dialogues with a focus on a controlled market launch, where smaller market installations are planned for 2020 followed by larger volumes in 2021.
Azelio is looking forward to an ever-approaching commercial breakthrough. In 2019 a full-scale verification project is being built in Morocco at one of the world’s largest concentrated solar power plants in cooperation with our strategic partner, Masen. The project will concretise Azelio’s solution, and will be an important part of existing and future dialogue with customers. The first small commercial installations are planned for 2020 and in 2021 production will gradually increase towards larger volumes.
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