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Introduction & Market Context
Bergen Carbon Solutions AS (BCS) presented its Q1 2025 results on May 7, 2025, highlighting significant progress in technology development while substantially reducing its cash burn rate. The Norwegian company, which specializes in carbon capture and utilization (CCU) technology, is positioning itself to capitalize on the rapidly growing battery materials market, particularly for electric vehicles.
Following the earnings presentation, BCS shares declined 3.09% to close at NOK 3.76, though the stock remains well above its 52-week low of NOK 2.60 and has shown strong performance over the past year with a 56.39% gain according to available market data.
The company’s core technology converts CO2 into high-quality carbon materials through electrolysis, producing carbon nanotubes (CNT) and other advanced carbon products that have applications in next-generation batteries.
As shown in the following diagram of their core process:
Quarterly Performance Highlights
BCS reported an operating loss of NOK 15.2 million for Q1 2025, a significant improvement from the NOK 22.8 million loss in Q1 2024. The company’s net loss before tax narrowed to NOK 13.3 million from NOK 20.0 million in the same period last year.
Most notably, the company achieved a 53% reduction in its cash burn rate compared to Q1 2024, with net cash outflow of NOK 9.7 million versus NOK 20.5 million in the prior-year quarter. This improvement reflects the company’s disciplined financial management while continuing to advance its technology development.
The company maintained a strong cash position of NOK 160.0 million at the end of Q1 2025, providing sufficient runway for continued operations and development. Total (EPA:TTEF) equity stood at NOK 171.8 million, with total assets of NOK 194.2 million.
The following table summarizes the key financial metrics:
Strategic Initiatives
Bergen Carbon Solutions is focusing on three key areas of process development in 2025: electrolysis (converting CO2 to advanced carbon powders), material processing and characterization, and applications testing.
A significant advancement has been the development of a method for recycling more than 95% of the electrolyte used in their process, with a patent pending and European intention to grant expected later in 2025. The company reports that the recycled electrolyte is of higher quality than virgin material, potentially improving both cost efficiency and sustainability.
The company has established an in-house battery lab to test its carbon materials, enabling faster development cycles and reducing dependency on external testing facilities. BCS is currently testing its carbon nanotubes with global LFP (Lithium Iron Phosphate) and Li-S (Lithium-Sulfur) battery manufacturers, with promising initial results.
The following image shows the company’s well-equipped laboratory for material characterization:
Competitive Industry Position
BCS is targeting the rapidly growing battery materials market, particularly for electric vehicles. According to data presented by the company, global battery cell demand is expected to grow at a CAGR of 28% from 2023-2030 for LFP batteries and 15% for NMC (Nickel Manganese Cobalt) batteries.
The shift from NMC to LFP battery chemistry is advantageous for BCS, as LFP batteries require significant amounts of carbon nanotubes. The company highlighted that a Tesla (NASDAQ:TSLA) Model Y with LFP batteries contains approximately 6 kg of CNT, while next-generation Li-Sulfur batteries could require up to 12 kg.
As illustrated in the following breakdown of EV battery components:
Geopolitical factors are also creating opportunities for BCS. With increasing trade barriers, tariffs, and protectionism reshaping battery supply chains, there is growing demand for local, secure sources of battery materials. The EU’s upcoming battery passport regulation from 2027 will further increase the importance of sustainable, traceable battery materials.
BCS’s modular, scalable production system offers a local and secure alternative to traditional battery material sourcing, potentially enabling on-site or near-site production of carbon materials for battery manufacturers.
The company’s production facility is shown here:
Forward-Looking Statements
Looking ahead, Bergen Carbon Solutions is pursuing multiple commercialization strategies, including technology licensing, partnerships, joint ventures, and potential own production. The company is in ongoing discussions with European and Asian battery companies and CO2 emitters.
BCS’s current strategy execution requires minimal additional capital expenditure, and the company is focused on relevant funding opportunities to support its growth. The company’s technology development is progressing well, with more testing efficiency, stable operations, and improved process understanding.
The company’s focus on sustainability and innovation was recently recognized with the "Norges Smarteste Industribedrift 2025" award (Norway’s Smartest Industrial Company 2025), highlighting its contribution to developing solutions that convert CO2 into valuable products for the global market.
As shown in the award recognition:
CEO Odd Strømsnes emphasized the company’s strategic focus during the earnings call, stating, "We are a technology development company, not a research organization." He also noted the rising demand for carbon materials, adding, "We believe carbon will increase in price. And this is good news for all CCUS companies."
While Bergen Carbon Solutions continues to make progress in its technology development and market positioning, challenges remain in meeting all CNT specifications and successfully navigating the competitive landscape of carbon materials. The company’s success will depend on its ability to execute its commercialization strategy effectively while maintaining financial discipline.
Full presentation:
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