Oslo, 19 November 2021 - Kyoto Group AS is pleased to announce the signing of
its first commercial contract for the Heatcube thermal battery solution under a
battery leasing (BaaS) agreement with Aalborg Forsyning in Denmark. 

According to the contract, the Heatcube will be installed at Nordjyllandsværket
power plant outside of Aalborg as a commercial demonstration unit, as previously
communicated. The thermal battery is under construction and expected to be
operational early 2022 as part of Nordjyllandsværket and Aalborg Varme's program
to test and introduce new clean energy solutions and phase out coal. The Kyoto
Group Heatcube thermal battery will provide heat to the local district heating
system under a leasing contract, and the energy input is electricity sourced
from the grid.

"The agreement represents our initial proof of commercialization of the Heatcube
and a milestone for decarbonising industrial heating. We look forward to start
supplying heat to Nordjyllandsværket, supporting its long-term energy
transition, and we see great potential for expanding our installation over
time," says Christopher Kjølner, CEO of Kyoto Group.

Nordjyllandsværket key to Denmark's decarbonization journey
"Aalborg Forsyning wants to play a central role in the development and testing
of new, green solutions. The Heatcube will be the first installation in our
green test center, so this is a key milestone for both us and for Kyoto Group.
We see great perspectives in the Heatcube, but first we want to test and verify
that it works with district heating," says Jesper Høstgaard-Jensen, COO at
Aalborg Forsyning. 

The Danish government has set a clear milestone in the country's energy policy
with its goal of phasing out coal from the power supply by 2030.
Nordjyllandsværket is one of three central coal fired facilities in the country
today. According to Denmark's Climate & Energy Outlook, the expected phase-out
of coal at Nordjyllandsværket will be at the end of 2028.

Modular design manufacturing started
As previously announced, Kyoto Group has started manufacturing of the Heatcube
which will be installed at Nordjyllandsværket. It will ensure a stable supply of
thermal energy with molten salts as storage medium. This specific unit will be
configured with 18 MWh of storage capacity and with a discharge load of 4 MW, as
compared to the standard design of 20 MWh of storage and 5MW discharge load. The
full system will be delivered in 20-feet containers on-site, ready for
integration. Thanks to the modular design, as many units as needed can be
installed at the site.   

When signed, the contract is subject to customary permits from Aalborg
Municipality, which is progressing well.

Kyoto Group's thermal batteries represent innovative, low-cost and modular
solutions for thermal energy storage and can use multiple renewable energy
sources to heat molten salt to over 500 degrees Celsius. The high-temperature
salt is then used to produce steam or a combination of electricity and hot water
for industrial use and as input to district heating systems. The Heatcube also
enables highly efficient balancing of the grid by storing cheap excess solar and
wind power.

For additional information, please contact:
CEO, Christopher Kjølner, +47 90 53 19 62 or christopher@kyotogroup.no
CFO, Camilla Nilsson, +47 48 29 56 85 or camilla@kyotogroup.no

 
About Nordjyllandsværket A/S
Nordjyllandsværket A/S is located in Vodskov, Nordjylland, Denmark and is part
of the Electric Power Generation, Transmission and Distribution Industry. The
company is owned by Aalborg Forsyning, home of many utility companies owned by
Aalborg municipality. 

About Kyoto Group
Kyoto Group aims to capture and manage the abundant energy from variable
renewable sources such as solar and wind power and apply it to reduce the CO2
footprint for industrial thermal loads. The Company plans to lease & operate and
sell Heatcube thermal batteries with capacity from 5MW, enabling industrial
consumption of low-cost heat sourced from excess solar and wind energy.

www.kyoto.group

This information is considered inside information pursuant to the EU Market
Abuse Regulation and is subject to the disclosure requirements pursuant to
Section 5-12 the Norwegian Securities Trading Act. This stock exchange release
was published by Camilla Nilsson, CFO of Kyoto Group on 19th of November at
16.40.