Co2 Capsol Q2 2025 presentation: Revenue growth continues as liquidity strengthens

Introduction & Market Context

Co2 Capsol AS (OB:CAPSL) presented its Q2 2025 results on August 26, highlighting continued revenue growth and an improved liquidity position as the company positions itself to capitalize on accelerating carbon capture market opportunities. The carbon capture technology provider reported that global policy support and industry partnerships are creating favorable conditions for CCUS (Carbon Capture, Utilization, and Storage) adoption.

The company’s stock has faced pressure over the past year, with a -31.03% return over the past 12 months according to available data, though it has recently shown signs of stabilization, closing at 8.84 NOK on August 25, 2025, up 0.91% for the day.

Market catalysts driving CCUS adoption include forecasts that carbon emissions trading schemes (ETS) could triple to approximately €200 per ton by 2035, growing demand for carbon removal credits, and green pricing premiums providing additional incentives for companies to adopt carbon capture technologies.

As shown in the following chart of projected CCUS capacity growth through 2050, Capsol is targeting a 4%+ market share by 2030, expanding to 6%+ as industries’ share of the total CCUS market grows:

Quarterly Performance Highlights

Co2 Capsol reported revenue of NOK 41 million for the first half of 2025, representing a 14% increase compared to H1 2024. Q2 2025 revenue came in at NOK 16 million, which indicates a slowdown from the NOK 24.9 million reported in Q1. Operating expenses remained stable at NOK 38 million for the period.

A significant development in Q2 was the strengthening of the company’s liquidity position to NOK 67.5 million by quarter-end, up from NOK 58.5 million in Q1. This improvement was largely due to a Green Loan Facility secured with DNB worth NOK 30.8 million.

The following chart illustrates the company’s revenue and operating expense trends over the past year:

The company’s cash flow and liquidity bridge demonstrates how the green loan has strengthened its financial position:

Management highlighted that one Final Investment Decision (FID) would be sufficient for the company to reach break-even, with a typical license value ranging from NOK 50–150 million per project. The company currently has four projects totaling over 3 million tons of CO2 capture capacity progressing toward the FEED (Front End Engineering Design) stage.

Strategic Initiatives

Co2 Capsol is executing a strategic shift from being solely a technology provider to becoming a comprehensive carbon capture platform. This evolution aims to unlock greater value by offering end-to-end CCUS project support, facilitating financing solutions, and integrating across the value chain.

The company’s strategy is built on five pillars: cost leadership, high-value verticals, capital-efficient scaling, geographic expansion, and value creation. Management emphasized that their licensing-led model enables scalable, capital-light growth with high margins.

The following chart illustrates how Capsol’s strategic initiatives could potentially double earnings while building recurring service revenue streams:

Strategic partnerships form a key component of this platform approach, with Capsol collaborating with companies such as Munters, Siemens, Storegga, and Petrofac across different stages of the CCUS value chain. These partnerships aim to strengthen the full customer journey from feasibility studies through to operations.

Competitive Industry Position

Capsol positions itself as a cost leader in carbon capture technology, claiming 20-60% lower costs compared to reference projects. The company attributes this advantage to its heat recovery system and Hot Potassium Carbonate (HPC) solvent, which together provide what they describe as "unmatched cost efficiency."

As demonstrated in the following cost comparison chart, Capsol’s technology offers significant savings compared to alternative solutions:

The company has established a strong position in key hard-to-abate sectors, with its mature pipeline growing 73% year-over-year to 22.6 million tons per annum (mtpa). The cement industry represents the largest opportunity at 12.1 mtpa with NOK 1.8 billion in revenue potential, followed by biomass and energy-from-waste at 5.0 mtpa with NOK 0.7 billion potential.

The following chart shows Capsol’s industry positioning and growth:

Geographically, Capsol maintains a leading position in Europe, with early traction in the United States and plans for future global expansion. The company reported that European policy tailwinds drove a 5 mtpa increase in its pipeline over the last twelve months, while its first U.S. projects are advancing to the next stage.

Forward-Looking Statements

Co2 Capsol outlined ambitious long-term goals, targeting continued expansion of its business model to capture greater value across the CCUS value chain. The company is aiming for licensing revenues of EUR 10-15 per ton installed and service fees of EUR 2+ per ton, with pre-tax profit margins of 40-60%.

Management expects multiple CapsolGo® campaigns to drive near-term revenue, with PDP/FEED revenue anticipated to ramp up by the end of 2025. The company’s mature pipeline represents NOK 3.3 billion in potential revenue and NOK 1.7 billion in pre-tax profit potential.

The following chart illustrates Capsol’s business model expansion opportunity based on different CCUS capacity scenarios:

CEO Wendy Lam emphasized the company’s position for profitable growth, stating in previous communications that "Carbon capture is a must-have solution for any decarbonization target." The company’s presentation reinforced this message, highlighting the competitive advantage offered by their technology platform in enabling lower costs for customers.

While the presentation painted an optimistic picture of future growth, investors should note that the company continues to operate at a loss, with breakeven dependent on securing Final Investment Decisions for key projects. The improved liquidity position provides runway for the company to execute its strategy, but achievement of profitability will depend on successful conversion of its pipeline into revenue-generating projects.

Full presentation:

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