Quantafuel has operated a production line in Skive,Denmark , at full capacity with the right balance between gas and oil production and increased operational stability. With these major achievements we target proof-of-concept in Q2 2021 and full production end of Q3 2021, as announced earlier. We are also pleased to confirm that we have started feeding plastics into the new technology test plant in Kristiansund,Norway .Quantafuel's strategy is to build large-scale Plastics-to-Liquid (PtL) process plants at multiple locations throughoutEurope , and in due time expand into other high-interest geographical regions. WithNOK 577 million in cash by end of Q1 2021, and strong support from our three strategic partners,BASF , Vitol andKirkbi , we are in a strong position to continue our journey shaping the chemical recycling market for plastic. Our primary focus remains on our plant in Skive to achieve proof-of-concept and capacity to deliver at scale. Before Christmas we worked to improve the gas-liquid ratio produced in the reactors, and in the first quarter we have worked to improve operating stability downstream the reactors. We have reached our targets set in the Q4 2020 report of running two lines in parallel and reaching full capacity on one line. We sent our first shipment toBASF in March. The budgeted total costs for the Skive plant remains unchanged atNOK 581 million .Quantafuel has been working on establishing a large-scale plant inDenmark for the past two years, and after assessing more than 40 potential sites we selected a plot outside Esbjerg. Building and environmental permit applications were submitted six months ago, and we expect to receive final approval soon. At our plant in Kristiansund,Norway , we are testing new reactor design for future plastic-to-liquid plants. The chemical recycling pilot and reactor design testing is conducted in partnership withBASF . The pilot has performed initial testing during the first quarter, and further testing is planned for the second quarter. The COVID-situation has resulted in delays for technical personnel traveling to Kristiansund, but this has now been solved. We have recently upgraded the control system of the pilot, and we expect to increase production through chemical recycling of locally recycled plastics fractions over the next weeks. Outlook The modification work on the Skive plant is progressing well, and we aim for proof-of-concept during second quarter 2021. Further modification work on some sub systems is required to reach continuous commercial production on all four lines simultaneously. Modification work will be performed over the next months, with an expected start of production at all four lines by the end of third quarter 2021. For Esbjerg, we have secured the property for the plant and are working diligently towards the target of reaching FID. Further, in Kristiansund we are increasing capacity on the pre-treatment and engineering a chemical recycling plant planned to be operating alongside the existing mechanical recycling plant.Quantafuel is discussing the roll-out of large-scale capacity plants with both existing and potential new partners.Quantafuel notices a rapidly growing interest from major players acrossEurope that may lead to new partnerships and FEED studies for integrated plants during the next months. EU's Green Deal requiring 50% recycling within 2025 is an important accelerator for plastic recycling, andQuantafuel is in pole position to take a lead in this market. ForQuantafuel this means more opportunities for business and continued technology development, for which we are building our organisation. Please see the attached Q1 2021 report and Q1 2021 presentation for further information. A webcast including Q&A will be hosted by CEOKjetil Bøhn starting10:00 CET . In addition to the ordinary quarterly update, Deputy CEO & CCO DrChristian Lach and COOTerje Eiken will present updates from our plants in Skive and Kristiansund. The presentation will be held in English. Link to webcast: https://quantafuel.com/ir https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210514_2 A recorded version of the webcast will be available after the presentation. For further queries, please contact: Kjetil Bøhn, CEO +47 91573818Kristian Flaten , CFO +47 95092322 AboutQuantafuel | https://quantafuel.comQuantafuel is a technology-based energy company converting waste plastics back into low-carbon synthetic oil products replacing virgin oil products.Quantafuel is establishing, operating and owning dedicated plastic-to-liquid (PtL) plants and plans to establish several plants throughoutEurope and beyond.
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