SeaTwirl aims to scale up and targets commercialisation of floating wind farms, extension of timetable for installation of S2 in Norway

2021-09-24 16:00:15

SEATWIRL AIMS TO SCALE UP AND TARGETS COMMERCIALISATION OF FLOATING WIND FARMS, EXTENSION OF TIMETABLE FOR INSTALLATION OF S2 IN NORWAY

SeaTwirl has presented an updated vision with a clear and distinct focus on floating wind farms. A new strategic plan has been prepared to accelerate commercialisation of SeaTwirl's technology for this market. In connection with this, the company will perform a preferential rights issue in the autumn.

- Strategic work by the Board of Directors and management has resulted in a clear vision: to become a leading supplier of floating wind turbines to wind farms

- A strategic plan has been drawn up to commercialise SeaTwirl's technology for floating wind turbines to wind farms a quickly as possible

- All development work and the initial production of the S2 wind turbines have provided valuable input to the company, input that will be used in the forthcoming scaling up of the technology with larger turbines

- As previously communicated, the company will perform a preferential rights issue in the autumn

- The long-term loan from our principal owners has been extended until 31 December 2021

Major investments will be required in offshore wind power
The urgent need to tackle climate change is driving the rapid development of the renewable energy sector. To address the climate challenge, increased electrification, and the phase out of carbon dioxide from electricity generation have been highlighted as key areas. This means major investments will be required in offshore wind power in the coming decades.

Intensive strategy work
Intensive strategy work has been conducted over the past year in parallel with SeaTwirl's Board appointing new members. In addition to the rapid development of the industry, a research report from Oxford Brookes University theoretically showed that vertical-axis wind turbines are more efficient in wind farms and efficiency can increase by up to 15% when turbines are set in pairs. This offered the Board an even clearer direction in its strategy efforts. The company considers the extraction of more energy from a more compact geographical area as a clear success factor.

The result is a new, more concentrated, and clearer vision for the company: to become a world-leading supplier of floating wind farms.

" The pace of deployment of offshore wind power is increasing and the volume and size of turbines is growing. We have a unique design that has the potential to deliver a lower production cost for energy than is currently available in the market. We have therefore decided to concentrate on commercialising of our technology as quickly as possible with a focus on wind turbines for floating wind farms", says CEO Peter Laurits.

Wind turbines of 1-4 MW for applications such as islands, fish farms and other industrial applications might still be of interest if these opportunities also accelerate the process of manufacturing products that are relevant for large wind farms.

Valuable work completed
Internal work with simulations, calculations, and in-house testing of the S2 has provided sought after answers. The past year has been incredibly productive for the company. Key components, such as the turbine blades and control electronics, have made significant progress in the production process in collaboration with the company's strong partners and subcontractors. The company will now conduct testing on these components. This will provide valuable input when scaling up the wind turbine.

Installation delays
Given that the company is still waiting for approval of its concession in Norway, the timetable for the S2 installation in 2022 will be delayed. This is because installation during late autumn and winter is not the preferred option.

- We cannot influence the application process more than by acting - together with our competent partners in Norway - as quickly and professionally as possible as new questions arise. We are using this time to study ways to optimise our design, with a particular focus on scaling up the design.

Carefully considered plan
Based on dialogue with potential customers, the company will gather opinions and wishes as regards performance and configuration preferences. Together with additional test data from the S1 and S2 prototypes, this will provide valuable input for continued development and testing efforts as we progress towards large-scale wind farms.

During the autumn, SeaTwirl is planning to capitalise the company to finance the implementation of the next phase of the strategic plan, which has been prepared to realise the vision.

"Our chosen strategy is to gradually increase the size of our turbines. Work to date has been extremely valuable, the company now internally knows that we construct a turbine the size of S2 (1 MW). Our increased focus will fully concentrate efforts on commercialising the technology as quickly as possible with a focus on floating wind farms. We have a carefully considered plan for how we will use the funds raised to accelerate this journey," says CEO Peter Laurits.

Responsible parties
The information in this press release constitutes inside information that SeaTwirl AB (publ) is required to publish under the EU Market Abuse Regulation 596/2014. The information was sent, through the care of the contact person below, for publication at the time specified by the company's news distributor, Bequoted, at the time of publication of this press release.

For further information, please contact:

Dan Friberg, chairman of the board
Phone: +46 70 788 75 44
Email: dan.friberg@infobric.com

Peter Laurits, CEO
Phone: +46 70 148 0198
Email: peter.laurits@seatwirl.com

The following documents can be retrieved from beQuoted
SeaTwirl-PM-Commercialisation-and-timetable.pdf

About SeaTwirl
SeaTwirl AB (publ) is a Swedish development company within wind power with the vision to become a global leader within offshore wind power. SeaTwirl's unique floating wind power is simple and robust with few moving parts. This suits the conditions at sea and minimizes the need for maintenance, which leads to fewer downtimes and more operating hours. The company installed its first prototype in the ocean 2015. Development is now taking place for next generation of 1 MW. The company has been listed on the Nasdaq First North Growth Market since 2016. Read more at www.seatwirl.se

The company's Certified Adviser is Mangold Fondkommission AB, which can be reached at
+46 8 5030 1550 and ca@mangold.se.

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