Azelio’s market and customers

 

The company advised that the technology is well suited for areas that today lack access to a power grid or have no reliable power grids. The firm assesses that Azelio’s solution can be used to accelerate the rollout of electricity to the approximately one billion people around the sun belt who currently have no access to reliable electricity. The company intends to sell its system to EPC-contractors who then install the system for the end customer. Future end customers could include energy-intensive customers such as mining industry, cement industry and process industry.

 

“Increasing the pace to industrialise the system”

 

Jonas Eklind, Azelio’s CEO, remarked that the company has made great progress during the last year and is now close to offering its customers a highly competitive product. “It will be the first solution for modular and distributed electricity production based on thermal solar power combined with thermal energy storage, which enables electricity generation based on solar power around the clock, at a very attractive price,” he enthused.

 

“In June of this year we demonstrated our thermal energy storage, which was the last unproven subsystem of our solution, together with our Stirling engine, and showed that we can produce electricity from stored heat. Since then, customer interest has increased considerably, and we are now increasing the pace to industrialise the system and launch the product on the market,” he advised. “In the light of that, we are now carrying out a new share issue and a listing of the company’s share, which is welcomed by both me and the board of directors.”

 

Solving solar’s challenge: long-term energy storage 

 

Bo Dankis, Chairman of the Board of directors, commented that Azelio has a solid industrial history with over a decade in development. “I am pleased to say that we are very close to a market launch of a product that solves one of the major challenges in the energy market – long-term storage of renewable energy at a competitive price. We will be able to offer electricity from solar power around the clock at a price competing with fossil fuels,” he asserted. 

 

“On the behalf of the board of directors, I welcome the new share issue and the listing of the company’s share, and I am pleased to see a strong support from institutional investors as well as members of our management and board of directors, who together have committed to subscribe for shares corresponding to a total of SEK 138 million prior to the new share issue.”

 

The Offering in brief

 

The Offering is expected to be conducted at a fixed price of SEK 22 per share, corresponding to a total market value of the Company’s shares of approximately SEK 690 million prior to the Offering. It is expected to comprise a maximum of 13,636,363 new shares, corresponding to approximately 30 per cent of the total number of shares and votes in the firm upon completion of the Offering. The Offering is expected to render proceeds of approximately SEK 300 million before transaction costs. The company stated that a prospectus with the complete terms and conditions of the Offering is expected to be published on or around 19th November 2018 on Azelio’s website (www.azelio.com) and Pareto Securities’ website (www.paretosec.com

 

Background to the Offering

 

The purpose of the Offering is primarily to finance Azelio’s continued industrialisation of the system’s design, construction and production, with the aim to achieve industrialised volume production. The company also intends to establish a sales and marketing organisation that will work in a structured way to increase awareness of the firmy and to establish, maintain and develop relationships with potential customers in prospective markets.

 

Azelio expects the first commercial order of the Company’s system to be received during the first half of 2020, and by that time, the Company intends to make further investments in production, such as in tools and production equipment and in recruiting and training production personnel, and in computer and production systems.

 

The company, which changed its name from Cleanergy to Azelio in June this year, has its head office in Gothenburg, Sweden, with production in Uddevalla and a development centre in Gothenburg and Åmål, as well as a sales office in Beijing, China and a representative office in Madrid, Spain. As of 30th September 2018, the firm had 75 employees. Since inception the company has raised to more than one billion SEK.