Tax Relief

New milestone for TECO 2030: As much as 5.four million NOK in tax breaks granted for the event of a manufacturing course of for hydrogen gas cells

Lysaker, Norway, September 23, 2021 – TECO 2030 (OSE: TECO) receives indirect government support of up to 5.4 million NOK for the development of its first semi-automated production line for hydrogen fuel cells at its new fuel cell plant and innovation center in Narvik in Northern Norway.

Support was provided through the Norwegian Research Council’s Skattefunn program, a tax deduction scheme designed to encourage research and development (R&D) activities in Norwegian companies. It provides indirect support in the form of tax deductions on costs related to research and development activities carried out.

“We are currently in the process of building a combined innovation center and factory in Narvik, Northern Norway, where we will produce hydrogen fuel cells. Hydrogen fuel cells are the engines of tomorrow and convert hydrogen into electricity and only emit water vapor and warm air, ”says Tore Enger, CEO of TECO 2030 ASA.

“We are very pleased and grateful for the support we have now received from the Research Council of Norway for this purpose. With your support, we will start pilot production of fuel cells in our new plant in the second half of 2022, ”says Enger.

Tax relief for costs related to the development of a production line

The tax-exempt project is the construction of a state-of-the-art production line for hydrogen fuel cells with a total annual production capacity of 400 MW. The tax relief is valid for two years, 2021 and 2022.

The tax relief for the development of a production line for hydrogen fuel cells is the second successful Skattefunn application from TECO 2030.

As announced earlier this month, the company has also received up to NOK 4 million in tax breaks to develop solutions that capture and store CO₂ from ship exhaust gases until the ship reaches port.

Cooperation with AVL

TECO 2030 is developing fuel cell technology in cooperation with the Austrian drive technology company AVL, which is also involved in the planning and construction of the combined fuel cell plant and innovation center in Narvik.

The TECO 2030 Marine Fuel Cell is the world’s first fuel cell system that was specially developed for use on board ships and other heavy-duty applications.

By replacing one or more of their engines with a TECO 2030 Marine Fuel Cell, ships can switch from fossil fuels to hydrogen and reduce their emissions to zero. You can then sail emission-free either on the entire route or on shorter routes, for example when entering and leaving ports.

Norway’s first large-scale production of hydrogen fuel cells

The TECO 2030 innovation center in Narvik will be Norway’s first large-scale production of hydrogen fuel cells. TECO 2030 has taken over the building that will house the new factory in July and plans to start hiring in the first half of 2022.

Over the next ten years, TECO expects total investments in the Narvik plant of up to NOK 1 billion in 2030. During this time, up to 500 new jobs in the areas of development, pilot production and series production can be created in Narvik.

TECO 2030 plans to produce fuel cells with a total capacity of 10 MW in the plant in 2022 and to gradually increase the output of the system in the following years. By 2030, the factory will be able to produce 1.2 GW of fuel cells annually, which should result in annual sales of several billion NOK.

The production of fuel cells for use in the maritime industry is still at an early stage, and TECO 2030 will therefore give research communities – such as universities and other non-profit organizations – the opportunity to use the plant’s fuel cell element test facilities at times when in which they are not used.

Green transition in the maritime industry

The International Maritime Organization (IMO) has set itself the goal of reducing CO2 intensity in international shipping by 40% by 2030 and the total annual greenhouse gas emissions of international shipping by at least 50% by 2050 compared to 2008.

Shipowners around the world must therefore do something to make their ships more climate friendly, and TECO 2030 will help them do this.

TECO 2030 provides a technology that helps ships to reduce their environmental and climate impact. In addition to hydrogen fuel cells, the company develops CO2 capture and exhaust gas cleaning systems for the maritime industry, which enable ships that run on fossil fuels to reduce their environmental and climate footprint.

Disclosure Regulation

This information is subject to disclosure requirements under Section 5-12 of the Norwegian Securities Trading Act.

contacts

  • Tore Enger, Chief Executive Officer (CEO) of TECO 2030 ASA, +4792083800, tore.enger@teco2030.no

About TECO 2030 ASA

TECO 2030 aims to contribute to green change in the maritime sector by delivering technologies that help ships reduce their environmental and climate impact. TECO 2030 develops hydrogen fuel cells that enable ships and other heavy-duty applications to become emission-free. The company is also developing other solutions that can help the maritime industry reduce their emissions, such as exhaust gas cleaning and CO2 capture systems for ships. TECO 2030 was founded in 2019 and is headquartered in Lysaker, Norway. The company is listed on Euronext Growth on the Oslo Stock Exchange under the name TECO. TECO 2030 has its roots in the TECO Maritime Group, a group that has been providing technology and repair services to the global shipping industry since 1994. More information is available at www.teco2030.no.

Attachments

  • Download announcement as PDF.pdf
  • PressRelease_TaxRelief_210923.pdf

© NTB Norway, source NTB English Regulatory Releases

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