Oslo, 7 July 2021 - Kyoto Group AS has placed an order for the first Heatcube
thermal battery which will be installed as a commercial demonstration unit. The
manufacturing of the Heatcube components has started, supported by leading
designers and manufacturers, leveraging the successful pilot in 2020 which
provided proof of concept for a molten salt thermal battery.

"Since proof of concept, we have matured the battery design with some of the
world's leading experts in molten salt systems and have now ordered the
components and started manufacturing the first Heatcube," says Christopher
Kjølner, the Chief Executive Officer of Kyoto Group. "Once installed, the unit
will operate under commercial contract for sale of heat energy from the Heatcube
under a battery-as-a-service (BaaS) Heat-sales agreement and serve as an initial
proof of commercialization."

Heatcube ensures a stable supply of decarbonized thermal energy for industrial
applications, with molten salts as storage medium. The first order of a
full-scale Heatcube module for commercial installation represents a key
milestone for the company as communicated in connection with the company's
capital raise and Euronext Growth listing in March this year. Further
information about the commercial pilot and its contract will be disclosed in due
course.   

A modular and highly scalable energy storage system 
The Heatcube is made up of integrated subsystems, such as tanks containing
molten salt, a circulation system with pumps and valves moving the salt from one
tank to the other, a steam generation system, amongst several others. The full
system is delivered in 20-feet containers on-site, ready to be integrated into
an industrial plant. Once manufactured, one Heatcube unit will be configured
with storage capacities of 20 MWh and with a discharge load of 5 MW. As many
units as needed can be installed together at the same site.   

Kyoto Group has partnered with RPow Consulting, an international engineering
consultancy company consisting of seasoned specialists with knowledge and
background in the major technologies in power generation, to design the tanks
holding the molten salt. RPow offers a broad range of technical and managing
services and are leading in designing molten salt equipment used for
concentrated solar power. Contratos y Diseños Industriales (CYD), a global
leader with over 30 years' experience in the construction and assembly of
thermal storage solutions, including molten salt, has been selected to build the
tanks.

Strong industrial partners 
"The use of molten salt tanks in a modular and containerized configuration is
groundbreaking," says Andrés Barros Borrero, the COO at RPOW Consulting. "We
have been working with Kyoto Group to design the battery for commercial use and
the combination of our experience in thermal energy storage and Kyoto Group's
innovative Heatcube has resulted in a very strong thermal battery solutions
offering."

"This is a major milestone for both Kyoto Group and for us. By working together
to create the tanks for the Heatube, we are part of a highly innovative project
to provide heat to industrial users at scale through clean, renewable energy,"
says Sergio Dávila Borraz, Global Business Development Manager at CyD.   

Kyoto Group is establishing partnerships with specialists for the other Heatcube
subsystems. This includes Aalborg CSP, a Danish renewable energy specialist
designing industrial applications based on concentrated solar power (CSP)
technology. Aalborg CSP is providing steam generator technology using molten
salt as heat transfer fluid.   

"We have established strong partnerships to bring the Heatcube to the market as
an efficient, modular and highly scalable solution for decarbonizing industrial
heating," comments Christopher Kjølner. "Thermal batteries hold the potential to
significantly reducing coal and natural gas as part of the energy mix. We are
eager to complete our first installation to fully demonstrate our capability to
deliver clean renewable heat energy to industrial users."    

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, founded in
2016, plans to operate and sell Heatcube thermal batteries with capacity from
5MW and upwards, enabling industrial consumption of low-cost heat sourced from
excess solar and wind energy.  

About RPow Consulting: International energy consultancy company, RPow Consulting
offers a broad range of technical and managing services primarily in the energy
sector, both conventional and renewable. With two main offices, in Spain and the
United Arabian Emirates, they develop and design advanced solutions to store
energy both residual or coming from solar resources.  

About CYD: CYD, or Contratos y Diseños Industriales SA, specializes in
industrial assembly, detailed engineering and construction of special equipment
and prefabrications with high technical requirements including thermal storage
solutions. Based in Barcelona, Spain, they have been in business for over 30
years.  

About Aalborg CSP: A Danish renewable energy and storage specialist, Aalborg CSP
A/S is a leading developer and supplier of renewable technologies. With nearly
30 years of thermal engineering experience, they design and deliver green
technologies and integrated energy systems to lower the cost of energy for
industries.   

For additional information, please contact: 
CEO, Christopher Kjølner, +47 90 53 19 62 or christopher@kyoto.group  
CFO, Camilla Nilsson, +47 48 29 56 85 or camilla@kyoto.group