Minesto publishes Half-Year Report 2025

CEO Dr Martin Edlund: “As the leading pioneer in Ocean Renewable Energy, Minesto moves on with more determination and positive spirit than ever to deliver renewable tidal energy to the world”

Significant events April-June 2025

During second quarter, Minesto continued operation and testing activities in Vestmanna, Faroe Islands. Since beginning of May, the Dragon 12 megawatt tidal kite “Luna” is in electricity production, following an upgrade period most prominently including a longer tether.

The Dragon 12 installed in Vestmannasund met a major production performance milestone: the longer tether enabled a 25% increase of power performance. This strengthened the company’s path toward commercial-scale deployment of its unique tidal kite technology.

In June, Minesto raised SEK 22 million loan financing, securing continued flexibility in dynamic business context. The loan financing, from Fenja Capital, is considered to be raised on market terms and has a set-up fee of four (4) per cent of the total loan amount as well as a monthly interest rate of one (1) per cent. The loan shall be repaid in full at the latest on 30 December 2025.

A Minesto-led consortium was awarded 25 MSEK grant to build a tidal energy power plant for baseload electricity production to microgrids. The consortium was awarded grant funding from Swedish Energy Agency to build a complete microgrid installation in the Faroe Islands. Minesto collaborates with microgrid technology provider Capture Energy, Faroese utility company Sev and IVL Swedish Environmental Research Institute to demonstrate a unique tidal-based microgrid solution that provides baseload power.

A total of 9,906,055 warrants of series TO4 were exercised, corresponding to approximately 89.0 percent of all outstanding warrants. Guarantee commitments amounted to 1,221,727 shares, which corresponded to approximately 11.0 percent of the outstanding TO4 warrants. The subscription price was SEK 1.54. Through the exercise of the TO4 series warrants, Minesto received approximately SEK 17.1 million before issuance costs.

During spring, Minesto joined the World Expo 2025 in Osaka, Japan, as part of the Swedish official delegation and partner to the Nordic Pavilion. In May, Sweden celebrated its national day at World Expo, the delegation led by HM King Carl XVI Gustaf. Minesto CEO Dr Martin Edlund was invited to join the visit and ceremony as part of the Swedish official delegation.

After the end of the period

A reorganization was completed, resulting in readiness to deliver commercial projects and reduced fixed costs. There are several ingredients in the reshaping of the organization, including relocation geographically, management team set-up and product development focus. The completed reorganization has resulted in a reduction of fixed costs by approximately 35%.

The Group in summary 1 January-30 June 2025

• Total operating income for the period amounted to SEK 12,234 thousand (13,549) and mainly consist of capitalised development work. Net sales amounted to SEK 0 thousand (75).

• Operating loss for the period amounted to SEK –20,502 thousand (–23,268). The negative result is largely attributable to business development and administration related to technology development. During the period personnel costs of SEK 12,233 thousand (13,452) has been capitalised as development work.

• At the end of the period, the intangible fixed assets amounted to SEK 562,112 thousand (519,460), of which capitalised development costs SEK 544,577 thousand (502,733) and capitalised patent expenses SEK 17,535 thousand (16,727).

• Grants of SEK 723 thousand (414) were accounted for during the period, of which SEK 723 thousand (406) has reduced the acquisition value of the capitalised development costs.

• Cash flow for the period amounted to SEK –4,419 thousand (60,670). At the end of the period, cash and cash equivalents amounted to SEK 30,241 thousand (76,051).

• At the end of the period, equity amounted to SEK 562,656 thousand (581,462) divided into 205,911,488 shares (194,116,040), of which loss for the period amounted to SEK 21,769 thousand (–23,143).

• The Half-Year Report is available to download at Minesto’s website:

www.minesto.com/investor/investor-information

CEO comment:

Strengthening the position as the leading pioneer in Ocean Renewable Energy

During the second quarter, Minesto made progress in key areas. The Dragon 12 has been grid-connected in Vestmannasund since the beginning of May and delivers the right level of energy conversion to underline the statement of Minesto as the leading tidal energy technology provider, offering a competitive complement to the global renewable energy transition. A major production performance milestone was met by verifying an expected 25% power performance increase enabled by a longer tether.

Electricity production and testing continues to keep demonstrating our unique offer to the world, and to push performance and robustness even further. We are in a position of strength with demonstrated product taking us to the first commercial array build out.

We are involved in planning and preparations to upgrade the Vestmanna test site to include a complete microgrid solution. Together with microgrid technology provider Capture Energy, Faroese utility company Sev, and IVL Swedish Environmental Research Institute, we look forward to leading a consortium awarded 25 MSEK grant funding from Swedish Energy Agency. This work gives us both an integrated microgrid offer, as well as implementation of upgrades to the Dragon-class platform via design and manufacturing of new Dragon 4 powerplants. The microgrid system targets both local non-grid connected areas in the Faroe Islands and similar opportunities in our global market entry portfolio.

We have further broadened our market interface with ongoing site identification and development work now covering eleven separate geographic markets. Our go-to-market strategy is based on teaming up with strong local energy project developers and renewable energy entrepreneurs. We have established relationships in these eleven markets and entered into MoUs with partners in most, with different levels of progress and likelihood of breakthrough.

Our process to support our partners with competence and tools needed to create ”dragon farms” is in full use. A structured site development project plan has been validated and a framework for feasibility analysis is in place. We are set up to broaden market probing, as well as to manage in-depth site development work at selected sites.  

A comprehensive data room for the Hestfjord investment case is available for ongoing commercial dialogues, and a second data room for the Holyhead Deep Project is ready for use. A market development company, Drekin Sp/f, is founded in the Faroe Islands and the business model and buildout strategy for the Faroe Islands 200 MW roadmap is in place.

The vital work of increasing global awareness of our unique products, as well as the Minesto brand, has reached new record intensity in the second quarter of 2025. In the second quarter, the exposure in public media channels exceeded 500 million views in total, which is extraordinary for a new industrial brand.

• Most significiant is the campaign "Faroe Islands Space Program" together with SKF, focusing on Minesto’s Dragon Technology and our opportunity to harness “moon energy”, making the most of the Earth’s resources in a sustainable approach. 
• Feature in internationally-broadcasted documentary “Engineering Tomorrow”, as well as broad media coverage in well-known channels such as BILD, SVT and tech magazines.
• Successful participation and presentations at World Expo Osaka 2025, Japan, as part of the official Swedish delegation, led by HM The King and as a member of Team Sweden for the Nordic Energy Days.
• Engagement and recognition at the United Nations Ocean Conference held in Nice, France in June, amongst a handful of selected Swedish tech companies in the blue economy.
• Participation in EU Business Hub Smart Energy Week in Seoul, South Korea, invited by EU as one of the European companies to be promoted and showcased.
• Continued engagement in global climate change forums, taking part in a pre-COP at World Economic Forum in Geneva, Switzerland, gearing up for United Nations’ upcoming climate meeting COP30 in Brazil.   

We have set up a loan of 22 MSEK in April and keep the door open for different financial solutions to fuel the commercial roll-out.

An organizational restructuring has been completed, resulting in a strong, lean, and focused organization to capture the opportunities that lie ahead. Our fixed costs have been reduced by more than 30% and the organization has been concentrated to Göteborg, Sweden.

As the leading pioneer in Ocean Renewable Energy, Minesto moves on with more determination and positive spirit than ever to deliver renewable tidal energy to the world.

/Martin Edlund, CEO

About Minesto

Minesto is a leading marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling plannable commercial power production from the ocean.

Minesto’s award winning and patented product is the only verified marine power plant that operates cost efficiently in areas with low-flow tidal streams and ocean currents.

Minesto was founded in 2007 and has operations in Sweden, the Faroe Islands, Wales and Taiwan. The major shareholders in Minesto are BGA Invest and Corespring New Technology. The Minesto share (MINEST) is traded on Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission.

Read more about Minesto at www.minesto.com

Press images and other media material is available for download via minesto.com/media

Financial information including reports, prospectuses and company descriptions is available in Swedish at www.minesto.com/investor.

For additional information, please contact

Cecilia Sernhage, Chief Communications Officer
+46 735 23 71 58
ir@minesto.com

Läs mer på Cision