Minesto publishes Year-End Report 2022

Financial Reports

24 februari 2023

CEO Dr Martin Edlund: Minesto’s ocean energy technology is now part of the planning and evaluation in the renewable energy transition across the world. 

Significant events October-December 2022

At the beginning of October, Minesto announced that the site development of the world’s first tidal energy kite array in Hestfjord, Faroe Islands, is progressing according to plan. The total planned capacity of the array is about 30 MW, and annual yield of the site is estimated to be 84 GWh. The assessment work under- taken covers all aspects of the site development, including environmental assessment studies, and the infield cable routing and grid connection works.
In November, Minesto joined the Swedish business delegation at United Nations’ climate change conference COP27 in Egypt. The participation was a partner- ship with Business Sweden and generated excellent opportunities to reach out with information about Minesto’s technology to international utility companies and governments. Minesto’s CEO Dr Martin Edlund took part in several panel discussions, meetings and interviews with wide publicity, amongst them are TT news agency, Spotify’s Climate Action podcast etc.
At the end of November, the company announced that the commissioned power plant Dragon 4 (100 kW) has delivered record-breaking results in terms of total electricity generated, peak performance, and energy conversion at large. The development of the first megawatt-scale power plant, Dragon 12 (1.2 MW) is making significant progress and installation is scheduled for spring 2023.
As part of Minesto’s broader market establishment in Southeast Asia, the company entered into a collaboration agreement for project development in the Nusa Tengara Barat region in Indonesia. The collaboration with Eco Regions Indonesia aims to integrate Minesto’s technology as a part of the 100 percent renewable energy mix in the region and is connected to Minesto’s membership in the bilateral programme Sweden-Indonesia Sustainability Partnership (SISP) Energy Alliance. The initiative is a first step towards the buildout of several key interest areas in Indonesia.
In December, Minesto doubled the production capacity of its grid-connected site in Vestmannasund in the Faroe Islands by installing a second foundation. The offshore infrastructure is thereby ready for the installation of a second power plant, which enables two Dragon 4 power plants in a first array set-up.
At the end of the year, a long-term lease agreement for strategic port access and onshore operations and maintenance (O&M) work site is signed with the Vestmanna municipality and Faroese utility company SEV. The agreement grants access to a 2050 m2 site in the inner harbour of Vestmanna, Inni á Fjørð; including a new grid connection. The site will accommodate the O&M hub for tidal energy production at Minesto’s existing site in Vestmannasund, as well as the company’s planned build- out of commercial tidal energy arrays in Hestfjord and Skopunafjord.

After the end of the period:

In January, the company reached a commercial mile- stone, having received a first historic sales order of tidal site development services in Asia with an initial order value of EUR 35 000. Minesto has been contracted to support a leading Asian corporation in the offshore energy sector for evaluation of a tidal current site targeting the deployment of Minesto’s Dragon Class tidal energy power plants.
Minesto and the Faroese utility company SEV strengthened the partnership through a renewed and expanded collaboration agreement related to tidal energy buildout in the Faroe Islands. An important add-on to the extended agreement stipulates the exclusive nature of the collaboration regarding the Hestfjord site development and buildout.
At the beginning of February, a strategic collaboration with experienced project developer of tidal energy in the Philippines, Poseidon Renewable Energy Corporation, was initiated. The parties signed a collaboration agreement with the intention to collaborate on establishing tidal energy with Minesto’s technology in the Philippines.
On 2nd February, the company announced that the board of Minesto resolves, subject to the approval by an extraordinary general meeting, to carry out a partially secured rights issue of shares of approximately SEK 153.4 million before deduction of transaction costs. The subscription price has been set to SEK 5.20 per share.

The Group in summary 1 January–31 December 2022

Total operating income amounted to SEK 45,749 thousand (41,869 thousand) and mainly included capitalised development work of SEK 42,818 thousand (38,763 thousand).
Operating loss was SEK –23,745 thousand (–20 136 thousand). The negative result is attributable to business development and administration related to technology development and includes costs such as personnel and consultants.
Earnings per share were SEK –0.61 (–0.11). The corresponding earnings per share after taking into account dilution of existing warrants were SEK –0.61 (–0.11).
At the end of the year, capitalised development costs amounted to SEK 377,172 thousand (298,405 thousand), in addition to capitalised patent expenses of SEK 15,285 thou- sand (14,432 thousand) within the intangible assets of SEK 392,457 thousand (312,838 thousand).
Grants of up to SEK 71,794 thousand (26,796 thousand) were accrued during the year, of which SEK 69,152 thousand (24,245 thousand) reduced the acquisition value of the capitalised development costs. During the year, payments of SEK 54,638 thousand (20,758 thousand) were received from public funding schemes, of which SEK 54,638 thousand (19,809 thousand) relates to approved claims and the remainder relates to advances.
Cash flow amounted to SEK –116,766 thousand (45,396 thousand).
At the end of the year, equity amounted to SEK 453,343 thousand (537,751 thousand).

The Year-End Report is available to download at Minesto’s website at