PRESS RELEASE

Stiesdal SkyClean A/S, together with a number of partners, has received a grant of DKK 124
million for the SkyClean Scale-up project. The project aims to develop pyrolysis into an efficient and economical climate technology for Danish agriculture.

The funds are distributed by the Danish Energy Agency from a special climate initiative,
adopted in the Finance Act for 2021. The purpose is to promote technologies with great potential to reduce greenhouse gas emissions in agriculture.

“The grant means that we and our partners can demonstrate the pyrolysis technology on a
commercial scale. We will now test and document many aspects of the technology and the
overall value chain in practice. It is a big step forward. In a time of enormous challenges, we
owe the government and a broad coalition of MPs in the Danish parliament a big thanks for
setting funds aside to accelerate the development of pyrolysis technology,” says Henrik
Stiesdal, CEO of Stiesdal A/S.

The first large-scale SkyClean plant to be built in Vrå
The core of the SkyClean Scale-up project is the pyrolysis technology itself and the upscaling of a pyrolysis plant to industrial and commercial size.

The majority of the project funds have been set aside for the construction of a 20 MW
SkyClean pyrolysis plant at the BB Bioenergy biogas plant in Vrå in North Denmark. The
largest SkyClean plant to date has an output of 2 MW, so the new plant will have a capacity
that is ten times larger.

The SkyClean plant in Vrå will be able to process 40,000 tons of residual fibers from the biogas plant annually. It will be able to produce 14,000 tons of biochar and a large amount of
green gas. The production of biochar alone corresponds to approx. 26,000 tons of CO₂ removed from the atmosphere.

“The grant means that we can continue the very high development pace that we have had
with the development of our two current test plants of 200 kW and 2 MW, respectively. Now
we can scale up times ten and together with our project partners make pyrolysis a well-described and well-documented climate technology”, says Peder Riis Nickelsen, CEO of Stiesdal SkyClean A/S, a subsidiary of Stiesdal A/S.

In addition to Stiesdal SkyClean, 14 other partners are participating in the project.

Project perspectives
The SkyClean Scale-up project focus is on the production of biochar, which removes CO₂
from the air, as well as on the production of advanced biofuels.

The project will provide the basis for an expansion of pyrolysis in Denmark. With approx. 100
similar size plants, an annual reduction in greenhouse gas emissions from the Danish agricultural sector of at least 2 million tons of CO₂ can be achieved by 2030. In addition, the
green fuels from pyrolysis production will displace fossil fuels corresponding to an annual reduction in Danish greenhouse gas emissions in 2030 of at least 1.6 million tons of CO₂.