Invest in a clean future

throught the unique technology of Savosolar

CEO's review

Jari Varjotie: “Our revenue for the first half of 2022 increased as the market recovered from the previous year’s downturn. Our revenue for January–June was EUR 2.1 million, which is about 31 percent higher than in the corresponding period of the previous year. EUR 1.4 million of the turnover was accumulated in the first quarter and EUR 0.7 million in the second quarter.

The net result of the first half of the year was weakened by the increase in material costs in particular, which we were unable to transfer to the previously agreed-upon fixed customer prices. In new tenders, we have taken the changes in material costs into account more strongly than before. Our operating result for January–June was EUR -2.4 million, compared to EUR -2.2 million a year ago.

Russia’s invasion of Ukraine has caused global turbulence in the energy sector. Europe’s dependence on the energy imported from Russia demands quick solutions from energy industry operators for the coming winter.  At the same time, it has awakened both cities and companies as well as EU decision-makers to think about sustainable and flexible energy solutions further into the future. Interest towards solar heat has grown when energy availability and self-sufficiency issues have risen alongside the climate targets. As a result of the recent market development, the relative price competitiveness of solar heat has continued to improve, despite the fact that the material costs of solar heating systems have also increased.

Solar heat is typically used locally, which reduces expensive power transmission line and battery investments. In addition, the large-scale use of solar heat accelerates the transition to clean energy production when emission-free electricity of limited availability can be utilised elsewhere than in heat production.

The increased uncertainty about the availability and costs of energy and materials complicates the timing of the customers’ investment decisions. Energy investments are currently more expensive than before, but the pressure towards renewable energy investments is constantly increasing.

During the reporting period, we signed a contract with Newheat SAS on the delivery of a solar thermal field worth around EUR 3 million to Verdun, France. This is already our fourth system delivery to Newheat who, as the owner and operator of the solar thermal system, sells heat with long-term contracts to its customers, in this case to Lactalis Group’s whey powder factory. We are pleased with Newheat’s choice to continue cooperation with us.

Towards the end of the reporting period, we had the pleasure of announcing a long-prepared pilot project for the mining industry in Latin America. The delivery worth around 0.2 million euros is significantly more important than its monetary value, as it is Savosolar’s first customer in the mining industry and the first customer in Latin America, where even the world’s leading mining companies are currently actively looking for low-emission energy sources.

We have continued to develop our products and offerings by, among other things, strengthening our ability to integrate clean sources of heat and our competence to support the customers’ project development.

The future of solar heat looks bright. Our customers who have switched to the utilisation of solar heat have been very satisfied with their investment decisions, especially in the current situation. Even though the exceptionally high cost level may hold back all energy investment decisions in the short term, I see that the rise in energy prices and the availability risks will keep interest towards solar heat high and speed up decisions to switch to low-cost and truly clean renewable solar heat.”

– Savosolar´s half-year report on August 18th, 2022