Quantafuel (QFUEL) today announced that mechanical recycling at Kristianslund started operations. It is the first cash generating business for Quantafuel that is in operation.

The target annual capacity of the mechanical recycling line is 20 000 tonnes per year. The start up will be gradual - current capacity of 10k will be increased to 20k by the end of 2Q22.

Kristianslund EBITDA higher than guided?

Originally QFUEL announced they expect annual ERBITDA of 25 million NOK from the mechanical recycling at Kristianslund. Today press release stated:

"Although we still have limited production volumes, a number of shipments have been made at market prices significantly higher than budgeted."

This could indicate, that there might be an upside in the 25 million EBITDA guidance.

Chemical recycling at Kristiansund next

Chemical recycling plant construction in Kristiansund should start next year and should take 24 months to complete

SKIVE

  • No update on Skive provided today
  • During the Pareto presentation the management announced that the cold commissioning of Skive modifications should start early December. This means the cold commissioning should start any day now.
  • The next step is to reach a proof of concept. The management guided, that this should be achieved around the year end. That is few weeks from now.
  • Proof of concept – it is a self-imposed hurdle by QFUEL mgmt. They originally imposed three hurdles:
    • (i) run one line at the full capacity,
    • (ii) run two lines in parallel, and
    • (iii) run one line for a defined number of days and generate product at required specifications.
  • The first two hurdles were already achieved, the third is guided to be reached around the year-end.
  • After QFUEL achieves the Proof of Concept on one line, they will aim to reach continuous production. They are guiding that should be achieved in 1Q22.
  • All four lines are guided to be running at continuous production in 2Q22

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