Research collaboration for cost-effective green hydrogen

Permascand is involved in and co-finances an industrial doctoral project at Umeå University. The goal of the project is to produce green hydrogen without, or with less, precious metals – as these metals are expensive and available in limited amounts.

The project at Umeå University includes the production of hydrogen and is a collaboration with Permascand to develop the technology in the field. In this industrial doctoral project, the focus area is electrocatalysis for water electrolysis in industry. For Permascand, it is also part of the strategic plan for the development of a technology and innovation centre.

Green energy sources are crucial to reduce the amount of pollution and the global warming. One such energy source is green hydrogen, which is produced by electrolysis from renewable energy. And it has a high energy density (higher than many other fossil fuels in use today).

Permascand will hire an industrial doctoral student and the focus going forward is to find the right candidate for the assignment. The project starts in spring 2023 and the remaining funding comes from The Swedish Foundation for Strategic Research (SSF). SSF supports projects that are deemed to be strategically relevant and strengthen Sweden's competitiveness.

More information:
Cheaper hydrogen as researchers collaborate with industry (umu.se)
Research (strategiska.se)
Green hydrogen – Permascand

Q3 2022: New sales record on an annualised basis as order intake picks up speed again

Interim report January-September 2022
Q3 2022 (Q3 2021)

  • Order intake decreased 30 per cent year-on-year to SEK 143 million (203)
  • Sales increased 57 per cent to SEK 120 million (76)
  • Operating profit totalled SEK 11 million (14), corresponding to 11 per cent (18) of revenue
  • Adjusted operating profit totalled SEK 6 million (14)
  • Profit after tax totalled SEK 8 million (10)
  • Earnings per share amounted to SEK 0.13 (0.18)
  • Cash flow from operating activities totalled SEK 39 million (32)

Events during the third quarter of 2022
On 23 September, Permascand announced that the partnership with Verdagy for the joint development of a new electrochemical cell for the production of green hydrogen had reached an important milestone in the form of successful pilot tests that validate the technology’s durability and scalability.

CEO comment

We once again posted robust sales in the third quarter, delivering on our strong order book. It is gratifying to see that in just the first three quarters of 2022, our sales have already surpassed full-year 2021. This is further proof that we are continuing to deliver according to our growth ambition.

Order intake for the quarter totalled SEK 143 million. Despite lower order intake than in the year-earlier quarter, order intake is one of the strongest we have recorded in a quarter, and our order intake for the January to September period was greater than in the corresponding year-earlier period. We are pleased to see that order intake once again picked up speed after the lower level in the second quarter. An important reason for this is falling prices in the global market for materials and raw materials. The year-earlier quarter was an exceptional period, where the entire annual order intake from one of our largest customers was concentrated in one and the same quarter.

Sales totalled SEK 120 million during the quarter, up 57 per cent year-on-year. Sales were primarily driven by sales in Water Treatment, where we successfully delivered on our order book, primarily derived from the strong order intake in Q3 2021 and on an ongoing basis in 2022. Industrial Solutions also performed favourably while sales in Electrification & Renewables were in line with the year-earlier quarter.

The recent turmoil in the global market has led to a shift in market dynamics meaning that the time between order intake and delivery has become shorter. Now our customers place several smaller orders rather than fewer large ones, which can sometimes entail variations that result in misleading comparative quarterly figures. Permascand’s performance should be viewed in the context of longer cycles. There it is clear that we are demonstrating a positive trend over time.

Gross profit for the quarter totalled SEK 26 million. Changes in capacity utilization have temporarily affected the result and reported gross margin negatively. The gross margin in the quarter was also negatively impacted by increased pricing pressure in Water Treatment.
 
Furthermore, during the quarter we encountered some operational challenges that disrupted our normally efficient operations and production. These included delayed deliveries of spare parts for machinery, employee absenteeism and disruptions to the power supply from a failing switchyard. Increased costs resulting from the interruptions have, to a certain extent, been reflected in the somewhat lower profitability for the quarter. Despite these challenges, we delivered solid figures and profitable growth and we are continuously reviewing our processes to further strengthen our supply chain and create better stability and resilience against long lead times and volatile prices.

Electrification & Renewables
The level of activity remains high and new milestones are continuously being reached. One of these is our partnership with Verdagy, where we successfully worked together to develop a new electrochemical cell for producing green hydrogen. During the quarter, we could announce successful pilot tests that validated the technology’s durability and scalability, which is a precondition for taking the next step and reaching a commercial scale. We look forward to the first commercial order in hydrogen, which is expected to come in 2023. In the area of power transmission, we are seeing increased interest in our expertise in corrosion protection related to investments in green electricity supply.
 
Industrial Solutions 
In line with previous assessments, the activity level and demand remained high in Industrial Solutions, with a strong order intake and sales for the quarter as a result. We have a strong order book in the segment and several future new-build projects are being evaluated.
 
Water Treatment
We once again reported favourable order intake and strong sales in Water Treatment for the quarter, in parallel with the start of several new customer projects. We have an overall strong position in the market together with our customers, enabling us to continue to capitalise on the installations required in order for marine transport to meet regulatory requirements. It is also gratifying that we delivered our first order for industrial water treatment during the quarter.
 
Outlook
We are still experiencing a high level of activity among our customers and we have great expectations that ongoing projects will lead to order placements towards the end of the year and in the beginning of 2023. In line with the previous year, we expect stronger order intake in the fourth quarter for delivery next year, and negotiations involving several customer projects are in their final stage. With an impressive sales record on an annualised basis, robust order books and strong finances, we are continuing to develop on our profitable journey of growth and achieving our financial targets as we progress.

Peter Lundström, CEO Permascand

Report presentation
CEO Peter Lundström and CFO Linda Ekman will present the report in a conference call today 11 November at 10:30 CET. The presentation will be held in English and will conclude with a Q&A session.

Webcast
https://ir.financialhearings.com/permascand-top-holding-q3-2022

Phone number
To participate via telephone please dial-in on the numbers below.
SE: +46-8-5051-6386
UK: +44-20-319-84884
US: 1-412-317-6300, Pin code: 9111060#

Link to report
The report is attached to this announcement and can be found at: https://permascand.com/investors/financial-reports/

Cooperation and partnership lead to commercial energy supply

The successful co-development of the NORSCAND® electrolyser has now entered commercialization, as the first industrial electrochemical cells are shipped for use in lithium electrolysis demonstration-scale plants in the US and Europe. The cells make it possible to produce lithium hydroxide much more effectively through electrochemistry rather than the traditional method of a metathesis reaction between lithium carbonate and calcium hydroxide.

The collaborative partnership – started in 2013 between NORAM Electrolysis Systems Inc. (NESI) (Vancouver, Canada) and Permascand – resulted in the co-development of the NORSCAND® cell, a novel multi-compartment electrolysis cell specifically designed for salt-splitting of brines. The cell fills a critical gap in the renewable energy supply chains of the future – although Lithium Ion Batteries represent only one of the possible end-uses. The scalable production of lithium is crucial at a time when the world needs to switch from fosdsil fuels to electricity, given the central role played by lithium hydroxide  in the manufacturing of batteries for electric vehicles, mobile phones, and computers.

“We are very pleased with the electrochemical cell NORSCAND® and the cooperation with NESI,” says Peter Lundström, CEO at Permascand. “The result speaks for itself and fits very well into our strategy and sustainability goals.”

“NESI’s partnership with Permascand has enabled the joint development of a new family of electrochemical cells, the NORSCAND® cell, which are uniquely suited to lithium electrolysis” says Jeremy Moulson, VP at NESI. “The partnership between NESI and Permascand is a shining example of how corporations can come together, using their independent expertise, to help provide solutions for a more sustainable future.”

About NORAM Electrolysis Systems Inc.
NORAM Electrolysis Systems Inc. (NESI) is a privately held Vancouver, BC, Canada based electrolysis technology company. NESI focuses on the commercial implementation of lithium electrolysis for a variety of lithium brine feedstocks (sulphate, chloride, or carbonate). NESI is a wholly-owned subsidiary of NORAM Engineering and Constructors and part of the NORAM Group of Companies. NESI has an extensive electrochemical demo plant located at it’s R&D facility in Vancouver, Canada. For more information please visit: www.nesi.tech

Invitation to presentation of Permascand’s Q3 2022 interim report

Permascand will publish its Q3 2022 interim report on 11 November 2022 at 07:45 CET. In connection with this, Permascand invites investors, analysts and media to a conference call and webcast on the same day at 10:30 CET.

The presentation will be held by CEO Peter Lundström and CFO Linda Ekman in English and will conclude with a Q&A session. Questions can be asked on the conference call or in written form through the webcast. No preregistration is required.

Date and time
11 November 2022 at 10:30 CET

Webcast
https://ir.financialhearings.com/permascand-top-holding-q3-2022

Phone number
To participate via telephone please dial-in on the numbers below.

SE: +46-8-5051-6386
UK: +44-20-319-84884
US: 1-412-317-6300, Pin code: 9111060#

After the presentation a recording of the webcast will be available on the webcast link and on the company’s website www.permascand.com

Permascand celebrates winning collaboration with Verdagy as Verdagy launches commercial electrolyzer module, demonstrating low-cost green hydrogen at scale

Permascand’s and Verdagy’s partnership displays great success as Verdagy recently announced and demonstrated the commercial efficacy of its unique water electrolysis technology, eDynamic™, with two significant milestones on the path to cost effective hydrogen at scale.

Verdagy is engineering the world’s largest membrane-based electrochemical cells to drive down the investment and energy required for generating industrial hydrogen. The recent successful pilots validate the durability and scalability of its technology:

  1. Verdagy ran a demonstration-scale Anion Exchange Membrane (AEM) of 3200 cm² , 20kW cell – for 1,000 hours continuously at industry leading high current density in a production environment. The 1,000-hour run demonstrated lifetime durability and minimized risk as they scaled up to the commercial electrolyzer module.
  1. Verdagy launched its three-cell 500 kW commercial electrolyzer module in August 2022 at its Moss Landing pilot plant. Each cell incorporates the largest AEM’s in the world at 28,500 cm². This represents industry-leading current density operations that are higher than traditional and state-of-the art Alkaline Water Electrolyzers (AWE), exceeding expectations for performance.

Peter Lundström, CEO at Permascand, said: “Verdagy’s technology and our ability to scale the manufacture of high-end electrolysis equipment is a successful collaboration to bring innovative green hydrogen technology to the broader market. And the positive outcome of the demonstration shows their ability to solve electrolysis challenges for industrial markets through rapid scaling”.

Verdagy has a rapid path to commercialization and the collaboration with Permascand unlocked low-cost hydrogen production.

Marty Neese, Verdagy’s CEO, stated, “The rapid pace of innovation getting to commercial scale is exactly what is needed to enable the energy transition and make green hydrogen at industrial scale come to life. Permascand is a great partner to bring our cell design to commercialization”.

Verdagy achieves the lowest CapEx in the industry and the lowest H2 (hydrogen) production costs when coupled with renewable energy. In their mission to produce cost-effective hydrogen for industry at scale both pilots demonstrate the technical readiness of Verdagy’s integrated process.
 
About Verdagy
Verdagy is innovating water electrolysis technology for the large-scale production of green hydrogen. Verdagy's industry leading solution achieves both the lowest upfront capital costs and the lowest unit economics for production. Verdagy operates its laboratory and a 25,000 sq. ft. pilot plant facility in Moss Landing, California, to further develop and rapidly scale the technology platform. For more information, visit: www.verdagy.com.