Arrow scroll Skip to main contentSkip to navigation



How does your technology differ from other energy storage solutions?

There are several different energy storage technologies that serve different purposes. Batteries are aimed to provide power for storage with fast-response and short-term use, up to about four hours of storage. Hydrogen is another storage technology that is suitable for storing energy over seasons or longer periods of time or when transported for long distances. Azelio's TES.POD is a long duration energy storage technology aimed to provide energy, for daily cycles to close the 24-hour circle. For example, charging the storage from solar PV during sun-hours and produce electricity and supply heat from the storage on demand at hours when the sun is not shining or when direct production is insufficient.


What Is the power output, efficiency and storage capacity of a TES.POD?

Azelio's storage solution is delivered as clusters of TES.POD units with number of units depending on the demand from individual customers, supplying electricity and heat. A cluster of 20 units has a storage capacity for electrical output of 3.3 MWh and 11 MWh for output of electricity and heat.


How sustainable is the TES.POD?  

The TES.POD is 99% recyclable and uses recycled aluminium as storage media. Producing electricity and supplying heat with zero emissions. The system has no degradation in storage capacity over time, which means that it requires no replacements over time, as compared to batteries that drops in capacity and needs replacement every 7-10 years. In a lifecycle analysis made by RISE Institute, the TES.POD has about 30% lower C02 footprint compared to Li-Ion batteries. However, the two technologies differ in purpose for storage as batteries are suited for providing power (kW), while a long-duration storage systems, as the TES.POD, Is suited for providing energy (kWh).


For how long have you developed this technology?

The company was started in 2008, taking over a Stirling engine developed in the US and Germany, that Azelio is now the owner of. After 2008, about 200 of the company's Stirling engines were installed commercially and for test and demonstration in waste to energy and concentrated solar power projects. The engine has over 2 million operating hoursand is now fitted to the TES.POD unit, working with heat from the storage. The TES.POD was first revealed in a public demonstration in 2018 and has since been installed on some of the major global renewable energy arenas for project development, demonstration and verification.


Where do you stand as of now in your commercial roll-out?

The system performance has been verified and three commercial contracts have been signed. The first commercial contract in Dubai is installed and in operation. The second commercial order in Sweden is currently being installed. The third contract is in Egypt and is conditional on a study.

The production was Initiated in 2020, and since October 2021 it is produced in volume design, at low volumes initially in order to secure high quality in the products as well as in the supply chain, consisting of 70 European-based suppliers. The production aims to reach high volumes in late 2022.

Azelio's manufacturing plant in Uddevalla, Sweden, is where the company's Stirling engine is assembled. The manufacturing plant is dimensioned to below targets.   

4 000 units during the first 12 months from start of production
6 000 units 2022
17 000 units 2023
35 000 units 2024

What determines the actual production volumes are customer orders.

The storage tanks for the TES.POD are assembled In Vaggeryd, Sweden, by Azelio's contract manufacturer AQ Systems.


What does the verification mean and what Is the status of the verification?

The verification is carried through in order for customers to be able to finance projects using our technology. We have verified the system's performance and with the current data we have secured our commercial contracts. Larger projects require more extensive verified data series. We are running our verification project from Sweden, with leading certification organ DNV as our verification partner. The verification of data was planned to be performed from our installation in Morocco but was moved to Sweden because of the pandemic and travel restrictions.

The verification reports are not made public but are shared with customers under an NDA.   

Our installation in Abu Dhabi has the purpose of being evaluated by Masdar in order for them to include the technology in their product portfolio. It is also demonstrated through Masdar's green urban development program in Masdar City, where progressive renewable technologies are gathered, tested, and displayed. The off taker of Azelio's produced energy is a system developed by an American company, that captures moist from the air during night and extract it as usable water for irrigation.


What is the scope of Azelio’s MOUs?

The basis for a Memorandum of Understanding is often that a customer has identified several projects where there is a need for our specific technology. Under the MOU we help the customer to optimize the projects for our solution. Further, an ambition is agreed on for the need of our solution in future projects.

This is a very important step in our commercialisation, to get a commitment with partners, on the way to binding contracts. We have today signed MOUs of over 5 GWh for electrical output until 2026.

Currently two of our commercial contracts are with MOU partners, Alec Energy and Engazaat. Our commercial contract in Sweden is complementing an existing installation made by our MOU partner Svea Solar.


What type of partners do you have?

We are in a market that foresees an enormous expansion over the coming years. Long duration energy storage is a key solution that enables the renewable transition. In this expansion we will witness new players growing from small companies to major corporations, just as we have seen in the solar PV industry over the last 5-10 years.

For Azelio it is important to have a diversity in our partner structure - to partner up with major corporations that are active in several markets and sectors and where our technology can play a role in existing and future projects, as for example Alec, based In Dubai with over 14,000 employees, US-based MMR that are a global leader in electrical construction with installations in 36 markets, Masdar that have installed and financed renewable projects in 40 markets, and Masen that is a renewable energy leader in North Africa, managing one of the worlds largest solar parks and with responsibility for Morocco’s target of 52% renewable energy until 2030. It is also important for us to partner with smaller, progressive companies that plan for an expansion on the market, where our technology plays a key role.          

Read about Azelio's partners.

Press release: Partner agreement with Masdar and Khalifa University


    When will you be profitable?

    We aim to have a positive cash flow in 2022.


    Can demand ever exceed your production capacity?

    We currently have a capacity of assembling 23,000 Stirling engines annually in our factory in Uddevalla, Sweden. We have the possibility to build an additional production line to double the capacity in our existing facilities. Our pipeline of enquiries significantly exceeds our production capacity in the coming years.


    What are your prioritised markets?

    We have several markets of significant interest. We have four MOUs currently relating to the North American market, and a few MOUs in Africa and the Middle East, where there is a great need for energy supply and energy storage. We have set up local offices in South Africa and Australia, where we see that our local presence will make a big difference in our commercial approach, as well as local sales representatives in the Middle East and North America.


    What is the payback time for a TES.POD? When does it “become profitable”?

    This depends on several factors. Producing electricity from the TES.POD is half the cost of diesel produced electricity so with financing solutions, a replacement with clean energy from a TES.POD system can be more affordable from day one.

    What is the market outlook for Long Duration Energy Storage? 

    In order to reach a global renewable transition long duration energy storage (LDES) is needed to close the 24h circle. Long duration energy storage is already increasing momentum with over USD 3 billion invested in technology providers in the last five years. In the near future, building the momentum to reach NetZero will require 1 TWh of capacity to be deployed globally by 2025 with over USD
    50 billion investment. Globally only around 7% of this required storage capacity exists today.

    Azelio is a founder member in the LDES Council, consiting of 24 developers, investors and end-users. The council published a report on November 23. Read the report here: 


    What are your long-term financial targets?

    We have a long-term goal of an EBIT margin of 15 %.

    What is your comments on the share price?

    We don't comment or speculate on the share price, we have full focus on our business - to take the company forward and reach our goals. Since we began the development of our solution for energy storage in 2016, we have followed our plan and reached our set targets.