August 18th 2022

Azelio Interim Report Jan-June 2022

Group financial development

Q2: April – June 2022

        Net sales amounted to kSEK 226 (629)

        Operating profit/loss amounted to kSEK -136,586 (-99,938) after depreciation and amortisation of kSEK -42,578 (-33,419)

        Earnings per share before and after dilution totalled SEK -1.19 (-0.87)

        Profit/loss for the period amounted to kSEK -137,499 (-100,289)

        Cash flow for the period amounted to kSEK -140,768  (-117,010)

First half: Jan – June 2022

        Net sales amounted to kSEK 549 (726)

        Operating profit/loss amounted to kSEK -266,164 (-164,671) after depreciation and amortisation of kSEK -82,809 (-37,769)

        Earnings per share before and after dilution totalled SEK -2.31 (-1.49)

        Profit/loss for the period amounted to kSEK -267,815 (-165,348)

        Cash flow for the period amounted to kSEK -294,968 (381,902)

        Cash and bank balances amounted to kSEK 208,300 (714,415)

        Equity per share SEK 6.39 (8.70)


Significant events

Q2: April – June 2022

          New operational targets were adopted which state that at the end of 2022, a handful of projects should have been delivered. For 2023, the company aims to deliver at least 10 projects of 0.5-5 MW. In 2026, Azelio targets to deliver projects comprising at least 1 GWh (ie 1,000 MWh) in total installed electricity storage capacity.

          It was decided to reduce the number of employees by 55 persons, which together with the discontinuation of consultancy agreements, reduces the workforce by 123 full time staff and adapts the organisation to the new operational targets. The streamlining is expected to reduce costs by approx. SEK 150 million annually.

          Azelio received its first US order for its long-duration energy storage system, TES.POD, from Handi Stop Market in Fresno, California, which will combine two TES.POD units with solar energy to cover half the energy needs of one of its stations.

Other events

          The Annual General Meeting resolved to re-elect all Board members, except for Carol Browner, who had declined re-election.

          Fredrik Wäppling left his position as CFO. Eva Ramström was appointed acting CFO.

          Hans Svanbom was appointed US regional manager, whereby managers had been appointed for all key markets.

          The Haneberg project in Sweden was put into operation as the first project also using the system’s heat component.

          The TES.POD system achieved compliance to CE marking standards, which, apart from being applicable in Europe, also is recognized in other markets, for example in many African markets

          The latest UN Climate Panel Report highlighted risks from climate change and the urgent need to transition from fossil fuels to renewables. At the same time, the war in Ukraine serves as a reminder of national energy security and the advantages of locally produced energy. These factors are expected to underpin demand for Azelio’s solutions.

          In public debate, it is becoming increasingly evident that the current energy infrastructure is insufficient to support the rapid electrification of industry and transportation that is taking place in many markets across the globe.

          In August, the US passed the Inflation Reduction Act which includes significant spending on energy and climate change and could be expected to further increase demand for Azelio’s products.


Comments from the CEO

Azelio in rapid transformation

Azelio began a rapid transformation during the second quarter to reduce business risk and bring its energy storage system to market in a credible and controlled manner. To clarify how we see the way forward, we communicated new operational goals that outline a gradual increase in sales to 1 GWh in installed storage capacity in 2026.

The first sub-target is to deliver a handful of systems in 2022 to establish confidence in the TES.POD and contribute to making it “bankable”, i.e. possible for customers to finance and insure. We decided to focus on four key markets, prioritize data validation from systems operating under actual field conditions, certify the product for the US and implement a strict cost control, which meant that we temporarily paused several future-oriented projects and closed the office in China. It should be noted that we continue to work on the heat offering, as it has many attractive applications and also enhances the business case even further. Clarity about our priorities has sharpened the focus in operations and strengthened our relationships in key markets.

Important first order in USA

Since the new priorities were formulated, managers have been appointed for all key markets, Australia, MENA, Southern Africa and the United States, and we have also secured commercial projects in three of these.

That we received our first commercial order in the US in June, before the product is adapted to local standards, shows the interest in our solution in this market. Together with the US  passing of the Inflation Reduction Act authorizing large spending on energy and climate change, it has reinforced my view that the US will eventually become our largest market. The deal also makes it possible for us to use data from a field project in the ongoing certification in the US, which is a message of strength both for the product and for Azelio as a company.

We work actively to add orders for new projects in all our markets. Initially, we aim to take smaller orders to gain local experience, and then sell systems of 0.5-5 MW which can serve as models for other customers.

Strong customer interest

The potential is great, which is shown by the fact that in these markets, after exclusion of projects no longer deemed viable, we have 16 MoUs, if completed, correspond to a total installed capacity of approx. 370 MW corresponding a storage capacity of 4.7 GWh until the year 2027. We are currently actively processing possible projects of a total of approx. 75 MW installed capacity during 2022-2025, corresponding to 900-1,000 MWh of installed storage capacity.

Data builds the future

To reach a wider client base, we continue the work of establishing a strong framework around the product. DNV has completed the technical performance verification and we continue to work with them for third-party validation. We are adapting the product to US standards and expect to have the necessary certifications for this market in place by 2023. The TES.POD system achieved compliance to CE marking standards in July, which is useful also in markets outside Europe, for example in many African markets. Systems are in operation at Noor in Dubai, at Masdar in Abu Dhabi and in Haneberg, Sweden, all contributing to data validation from actual field conditions. While generating longer data series we expect to identify and remedy possible weaknesses, thereby continuously developing the system’s robustness further.

Lower costs

The tightened focus of the organization, in combination with stronger cost control, is intended to lower costs. Lower costs can be expected to become visible when staff reductions, start to impact results in the third and especially in the fourth quarter. Overall costs are expected to be reduced by SEK 150 million annually from 2023.

Ensuring financial capacity for the next phase

The process to strengthen our financial position continues. As previously communicated, the total capital requirement is estimated at SEK 250-400 million.

Moving ahead

I look forward to continuing to develop Azelio at a high pace and actively contribute to the green transition that the world needs. Our focus in the short term is to bring TES.POD to market. Our long-term goal is to take a leading role in establishing long-term energy storage as an important component in energy systems worldwide. Azelio can make a big difference. Together as a team, we will make it happen.

Jonas Wallmander, CEO

The full report is available as an attachement to this release and can also be found on the company website at the following link:

For more information, please contact:

CEO Jonas Wallmander                                             


Tel: +46 725 00 37 00                                                    

This disclosure contains information that Azelio AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, at 07:15 CET on August 18, 2022.

About Azelio

Azelio specializes in energy storage with electricity and heat production. The technology is revolutionary in that the energy becomes dispatchable, making renewable energy available around-the-clock. The energy is stored in recycled aluminium and converted into electricity and heat with a total efficiency of up to 90%. The solution is scalable, sustainable, and cost-efficient from 0.1 MW up to 20 MW. Azelio has approx. 200 employees with headquarters in Gothenburg, Sweden. Production takes place in Uddevalla and the company maintains development centers in Gothenburg and Åmål, has a presence in Stockholm, as well as Regional Directors for Australia, US, southern Africa and the MENA region. Azelio is listed on Nasdaq Stockholm First North Growth Market with FNCA Sweden AB as Certified Adviser. More about Azelio:

Azelio is a Swedish cleantech company. We have developed an ingenious long duration energy storage technology, providing dispatchable electricity and usable heat for all hours of the day – with zero emissions and at a very competitive cost. is using green hosting

Contact information

Lindholmsplatsen 1
417 56 Gothenburg


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