Introduction to


Company: Absolicon
Ticker: $ABSL
LIST: Spotlight Sweden
MCAP: $33 MUSD at time of publication
Share price: 136 SEK = 16 USD at time of publication
Industry: solar thermal heating/ district heating
Market size: $223 billion$ by 2026

Bullside Target: 400 SEK[1]


[1] https://www.aktiespararna.se/sites/default/files/absolicon_q4_2020.pdf

A crucial fact often neglected by investors and decision makers  globally is that 50 % of the worlds energy consumption consists of heat for buildings, homes and other facilities.[1]

Absolicon has invented a patented cost effective solution that uses sunpower to create heat and works like a giant magnifying glass . It has 76 % optical efficiency which currently is the highest in the world.

Absolicon’s business model has two main revenue streams:

1.Sell production lines to local distributors (each costs ~ $5 MUSD
2.Reoccurring additional revenues selling patented materials (between $2-5 MUSD annually per production line) and also royalty fees (4%) on products made by distributor.

The company has three main markets as focus:

1.Factories for heat consumption
2.Destillation of water
3. District heating


Why should one consider investing in Absolicon now?

-Absolicon has seen the flow of customer requests increase exponentially due to the green wave in USA and Europe .

-13 frame works agreements done today compared to 3 in March 2020 .
-Each of these agreements are worth potentially $10MUSD plus reoccurring revenues. [1]

-Absolicons concentrating solar collector will be able to compete with natural gas prices

-As stated in the introduction Heat is about half the world’s energy consumption. Electricity is only 20 % of the worlds power usage , heat And transport is 31 % .The industrial sector uses about 1/3 of the heat power consumption globally and this is what Absolicon helps with .


– Absolicon has multiple large corporations in ongoing customer discussions as indicated in the picture below:



These are Absolicons conservative Goals for 2022 :

-Turnover of $12 MUSD (equals 2 production lines)
-Positive cash flow from selling production lines
– Listing at the main Nasdaq market in Sweden




Patent protection:

The company has Patent on materials (glass reflector and pipes ) and on tools for mass production and Can therefore not be compared to regular solar panels
It also has:
-Reflector film with high reflection and low price
-Anti reflective glass with self cleaning surface
-Receiver that does not release heat

Patent situation
10 different Patents
Utility models
Design protection
Trademark protection

Absolicon has also recently initiated a cooperation with Swedish export credit  which allows Absolicon to sell their customers equipment and materials on credit They can also sell complete sun catcher fields on credit . This is exceptionally favourable since the Swedish government backs this financing.[2]

Background on District heating / solar heating

Europe today has 6000 heat grids that uses coal gas and oil. The European Union has promised to quit using fossil fuels and what is at hand is mostly solar heating.

Half of Swedens buildings are run on district heating which can be replaced by Absolicon . France has 50-70 % investment support for solar heating and Germany has 20 cities that already has installed sun driven heat . Absolicons system gives  50 % more heat than traditional solar thermal systems at higher temperatures.



Project with Municipalities

 Absolicon has made an application to the Swedish energy authorities (energi myndigheten ) and in December 2020 they started building Sweden’s largest heat field for sun catchers 3000 square meters with an annual production of 1000 MWH. Both the energy minister and director of the energy ministry of Sweden participated in the ritual. This field is close to the corporate head quarters of Absolicon and can easily be used for customer demonstrations. Half of Sweden’s homes are heated with  district heating. According to SNF, an environmental NGO, 20% of the heat can be replaced by solar thermal (8 TWh). Below you will find an image of the heat field project which broke ground in december 2020. This project could be the main catalyst to gain more customers within municipalities.

Conclusion

Absolicon’s latest financing was early 2020 with the goal to open new markets  and they’ve so far been able to finalize 12 new framework agreements in 9 months to customers who wants to mass produce their product . The company has ongoing discussions with major corporations globally and it looks like its only a matter of time before several of their framework agreements materialise into real orders. I believe the delay in the conversion of these framework deals can partly be accredited to COVID-19 delays. Local distributors will likely want to build up their own order book before placing their actual order on the Absolicon system.
Absolicon has a patented and unique solution which can be used for Distric heating, water distillation and Factories for heat consumption .
As far as I’ve been able to identify Absolicon appears to have the best in class product on the market with the absolute highest optical efficiency at 76 %. The potential order value of the current frame work agreements signed with distributors amount to one time revenues of $65MUSD and annual reoccurring revenues between $39-$65MUSD. I also believe Absolicon also has a massive potential to sell their system directly to municipalities who want to use their system for district heating, they also have ongoing direct discussions with major corporations globally. With the green wave in Europe and USA it appears the future for Absolicon is very bright!


I own shares personally in this company .

This is not to be considered financial advice, always do your own research!


Don’t forget to sign up with your e-mail adress by clicking follow on this website to receive updates directly into your inbox.


[1] Calculated as $5 MUSD one time fee and $5 MUSD reoccurring revenues.

[2] https://www.svenskverkstad.se/solenergiforetaget-absolicon-visar-goda-resultat



[1] https://www.iea.org/reports/renewables-2019/heat and https://vimeo.com/392939877




Portfolio introduction 21-02-23

Hard lessons in the past have thaught me to diversy my risks. In my portfolio summary below you will perhaps be surprised by the big size of my biggest position however don’t let this fool you because when the position was initiated it constitued less than 10 % of the portfolio. Below you will find a summary of all my current positions . You will have to excuse the poor resolution in the image below , I blame excel for this inconvenience 😉 . I will go through the companies of my biggest sector holdings today. In the coming posts I will go through the remaining sector holdings in further detail.

Holdings per sector :

Writing this entry I realize that my portfolio is leaning heavily towards the recycling and renewable energy industry, however there is a good reason for this. This specific sector in my portfolio constist companies that solve REAL issues with pollution, landfill waste and the worlds need of clean energy. Reducing carbon emissions through green and clean energy is a global goal which is hardly debated anywhere in the world.


Recycling and Renewable Energy Sector holdings

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/


Cielo’s plan is to construct 40 refineries within 7 years for renewable diesel using alternate waste feedstock. The techonology is proprietary , patented and has been developed for 16 years. Cielo can also produce naphta (jet fuel) and renewable diesel for the marine sector. Renewable diesel has shown to be 90 % lower in carbon emissions than regular diesel at least according to Cielo’s competitor Neste : https://www.greencarreports.com/news/1103998_renewable-diesel-90-percent-lower-carbon-emissions-than-regular-diesel-neste-claims
My opinion is that compared to Cielo’s north american competitor GEVO ,which uses farmland to grow fuel crops, Cielo’s solution has a far better impact on the environment using waste to create renewable energy and getting rid of harmful landfills and dumps.

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Environmental Waste International
Ticker: YEWTF / EWS
Listing: TSX Venture
Website: https://www.ewi.ca/


EWI uses a patented technology called reverse polymerization to convert used tires into precious commodities such as Carbon, oil and metal. Reverse Polymerization technology is far superior to regular polymerizaton in which there are plenty of competitors. EWI’s recycling system reduces greenhouse gas emissions by nearly 90%. Every day 4,1 million tires are scrapped and mostly put into landfills that constitute a massive negative impact on the environment. EWI has recently signed a deal with the danish environmental investment company Windspace that gives them exlusive rights to construct tire recycling facilities in Europe. This deal alone is estimated to be worth well over 100 million dollars in revenues in the coming years for EWI.


EWI technology can also be used for:

  • Liquid Biological Waste
  • Medical Waste
  • Food Sterilization System


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Char Technologies Ltd
Ticker: YES.V
Listing: TSX Venture
Website: https://www.chartechnologies.com/


Char has a patented and unique product that can now replace regular coal in coal power plants with Biocoal and also produce RNG which has a tremendously positive impact for the environment. The company says ” Char is Converting challenging organic streams into a greenhouse gas neutral biocoal and second generation Renewable Natural Gas (RNG)”. CHAR’s pyrolysis technology is recognized as a future solution by NYC DEP to process biosolids into value-add products. Char also has a solution to contamination of PFAS in landfills and water reserves.

Xebec & Greenlane renewables both participate in first-
generation anaerobic digestion (biogas) technology

• Pyrolysis is a second-generation technology
• Recent study shows 82% of RNG in Québec will need
to come from Second Generation RNG (Énergir)
• Char’s pyrolysis technology can convert woody material into RNG
• Pyrolys is also an identified pathway to generate green
hydrogen



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HydrogenPro
Ticker: HYPRO
Listing: Norwegian Merkur Market
Website: https://hydrogen-pro.com/

Hydrogenpro has a proprietary technology to produce cost competitive green Hydrogen using alkaline. Hydrogenpro announced on 2021-02-22 that they will be able to produce Green Hydrogen at a cost below 1.2 USD per kilogram already in 2022. This is an extreme breakthrough if the company can deliver on these promises especially since one of their competitors NEL has a target of 1.5 USD per kilograms for Green Hydrogen in 2023. HydrogenPro technology, if it delivers as promised, will be ready to compete in terms of price with gray hydrogen already next year in 2022.


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Fusion Fuel Green PLC
Ticker: HTOO
Listing: Nasdaq USA
Website: https://www.fusion-fuel.eu/

Fusion fuel has a proprietary patented technology to create Green Hydrogen using sun and water. Using years of experience in concentrated solar energy and renewables, the Fusion Fuel team has developed a ground breaking method to create Green Hydrogen at a cost far below any commercially available methods in the market today and can openly compete against traditional methods that produce brown and blue Hydrogen. Fusion Fuel has developed its own proprietary electrolysis solution using solar energy to create Hydrogen with zero carbon emissions. In fact, Fusion Fuel’s technology only creates Oxygen as a by-product .






An introduction to my blog

My posts are about ESG investing and how you can use this powerfull megatrend to your advantage and being able to achieve FIRE: Financially independent and Retire Early!

Even if your goal is not to become financially independent my hope is that you will come to learn what a powerfull financial opportunity it is to invest in the megatrend that I like to call the ESG boom.

What criterias do I look at when I decide to invest in a company?

-Environmentally friendly business idea
-Either in revenues or at inflection point where revenues are about to begin
-Solid management
-Sustainable production methods
-Investor friendly management team
-Unique product offering or service
-Reoccuring revenues

These criterias have helped me achieve :
+75 % in 2019
+135 % in 2020
+45 % YTD in 2021

My total returns since october 2018 is currently at 620 %.

FIRE path
My current savings rate is about 45 % of my net income. Despite this high savings rate I would not consider myself to be living a frugal lifestyle. Although I don’t currently have any kids I do have a spouse and several pets ;).

My goal is to reach my financial target at latest in 2028. At the way things are currently progressing however , not taking into account a major market crash, this should be achieved alot sooner than anticipated thanks to my ESG investment strategy.

Content for future blog posts
I will be writing both detailed analysis of companies that I currently own, plan on owning and others that I simply find interesting even if I don’t own or intend to own shares in the companies myself. I will also be giving you transcripts of CEO interviews with my own positions, IPO companies and more.

Transparency
Although nothing I write should be viewed as investment advice I think it is very important to be transparent in my trades and positions. Therefore I always write when I buy and sell positions. This will most likely always appear first on my twitter handle Frivid40 and of course also here on my blog.

If you have any questions I will be happy to try to answer them either by e-mail or via my twitter handle!