Annual report 2019
Azelio offers a system of thermal energy storage for Stirling engine-based electricity production on demand, 24 hours a day. The company owns all of the unique product design for its system and performs final assembly of the Stirling engine at its own plant, while subcontractors produce the system’s components and subsystems such as the storage unit.
Azelio can use two distinct business models depending on the commercial conditions and project-specific requirements. Initially Azelio may run and own projects jointly with partners to establish the technology in the market. Once the system and the technology are established and proven, Azelio will act as a technology provider that sells the technology and trains others in how to create successful projects.
Azelio’s system is offered to customers on the global energy market with an initial focus on installations of 0.5 MW to 20 MW. In the longer term Azelio intends to offer systems for projects of up to 100 MW. Azelio is focusing mainly on selling the system to EPC contractors (project development companies), which are then responsible for the installation. Initially, Azelio will participate in the start-up phase of new installations in order to train EPC contractors in successful system installation and maintenance.
Azelio’s revenue model varies depending on the commercial circumstances and project-specific requirements, and is thus determined by which business model the company applies. Initially, Azelio may run projects jointly with partners; the company then intends to become a technology provider that sells systems instead.
Once the system is established in the market, Azelio will use a revenue model based on system sales. In the aftermarket phase a revenue model in the form of service fees will be used, with recurring revenue being received for system monitoring, servicing and maintenance.
Discussions are held with various financiers who can assist Azelio's projects with loans. There are many variants for financing projects. A common structure is that a financier gives a loan to Azelio where the risk of loss on the claim is covered by a guarantee from a third party. Azelio can then have a lower interest cost compared to normal loan financing. In addition, it is also possible to obtain equity, loans or grants from organizations, authorities and international development banks such as the World Bank and the European Development Bank to finance projects.
Azelio’s goal is to drive the transition to renewable energy by storing renewable energy that is then made available on demand, 24 hours a day, at a low cost.
2019 - goals and goal follow-upSign agreements with partners / coordinators in priority markets.
Azelio made six statements of intent with partners in priority markets, in sub-Saharan Africa, in Pakistan, in California and in the Middle East.
Installation and commissioning of de-verification projects in Morocco. Verification projects were installed and commissioned in Morocco and Åmål.
2020 - goals
Continue to sign agreements with customers and convert Memorandums of Understanding into comercial orders.
Verification data presented from the company's verification projects.
2021 - goals
begin serial production and start major commercial projects.
The company's production capacity
2021: 1,500 units2022: 6,000 units2023: 17,000 units2024: 35,000 units
Financial goalsThe company aims to achieve an EBIT margin in the long term of at least 15 percent.
Meet the people behind the company
Read about Azelio's 2019