Global Bioenergies: strong progress in first half 2023

PRESS RELEASE

Global Bioenergies: strong progress in first half 2023

First half revenue of €3.1 million

Reduction of net loss

ASTM certification obtained for Sustainable Aviation Fuel technology

Upsizing of plant project

Evry, 19 September 2023 – 05:45 p.m.: Global Bioenergies’ Board of Directors held on 15 September approved the H1 2023 financial statements, which have been audited by the Statutory Auditor and show revenue of €3.1 million.

Samuel Dubruque, Chief Financial Officer of Global Bioenergies, said: “This record revenue since the creation of the Company, has enabled us to significantly reduce our net loss: (€4.1) million in H1 2023 compared to (€5.8) million in H1 2022 and (€7.6) million in H1 2021. Isonaturane™ 12 sales illustrate both the market appetite for our products and our ability to produce in compliance with the most stringent regulatory standards.”

Marc Delcourt, co-founder and CEO of Global Bioenergies, added: “The first half of 2023 was also marked by the achievement of the ASTM certification for our sustainable aviation fuel technology. This certification, an essential gateway reserved for a limited range of technologies, gives us access to the market for Sustainable Aviation Fuel, which is the main decarbonisation option for air transport. Thanks to the larger scale of operation of our process and the reduction in production costs, we plan to start operating in the European SAF market by 2030, when the mandatory minimum share of sustainable aviation fuels are raised from 2% to 6% in the European Union.”

Group Profit & Loss Account

Operating income mainly consists of revenue from the first sale of several tonnes of Isonaturane^TM 12.

Total isobutene and derivatives inventory entries, which impact both operating income and operating expenses, result in a total expense of €0.7 million in H1 2023.

Excluding these inventory entries, operating expenses increased €0.6 million versus H1 2022, mainly due to the increase in depreciation charges resulting from the commissioning of the Pomacle production unit on 1 November 2022. Other expense items remained stable.

Group Balance Sheet

The reduction in fixed assets is due to (i) the depreciation of the Pomacle-Bazancourt production unit commissioned at the end of 2022, (ii) the repayment of the guarantee at the end of one of the subsidy projects and (iii) the impairment of capitalised expenses specifically related to the 2,000 ton plant project.

Inventories decreased and receivables increased following delivery and invoicing of the first tonnes of Isonaturane^TM 12 at the end of the first half.

The cash balance increased by €1.1 million in the first half. Capital increases generated a net inflow of €6.5 million, supplemented by the receipt of subsidies and trade receivables (€2.7 million). Cash flows from operating activities accounted for most of the cash outflows over the period (€7.7 million) and were heavily impacted by Isonaturane^TM 12 production costs.

Highlights of the first half of 2023, recent events and outlook

–        Successful delivery of the first tons of Isonaturane^TM 12

To meet orders placed by major cosmetics companies including L’Oréal, Global Bioenergies has set up a dedicated value chain, partly subcontracted, and delivered several tonnes of Isonaturane^TM 12 in H1 2023. Although the associated revenue is substantial, the corresponding production costs remain considerably high and this business activity, which will not generate a significant margin for the Company, is now no longer a priority. The Company is currently focusing all its efforts on building a larger plant.

–        ASTM certification for sustainable aviation fuel from Global Bioenergies technology

The aviation industry requires all of its fuels to be certified by ASTM. Sustainable aviation fuels (SAF) are certified worldwide in accordance with the ASTM D7566 standard, which sets out the fuel specification requirements and maximum blending percentage with conventional fuels. The standard allows SAFs to be considered as “drop-in” fuels, meaning that they can be blended up to 50% with fossil kerosene and can be safely used in airliners and existing infrastructure worldwide.

Global Bioenergies obtained certification for its process in June 2023 marking the starting point for the roll-out of its sustainable aviation fuel technology. In order to become a major player in this field, production costs still need to be reduced significantly in order to be compatible with market prices. The Company aims for a share of the European SAF market in 2030, when the mandatory minimum share of sustainable aviation fuels will be raised to 6% in Europe.

• Focus on the larger scale plant project

Global Bioenergies has decided to adjust its roadmap to focus as of now on building a large-scale plant capable of producing up to 10,000 tonnes of isobutene and derivatives per year. This increase in production volume coupled with a reduction in selling prices will enable the Company to meet the needs of the cosmetics market more broadly and then gradually penetrate the Sustainable Aviation Fuel market. The plant would start operations at the end of 2027. Global Bioenergies will release design and construction schedules by the end of 2023.

About GLOBAL BIOENERGIES

Global Bioenergies substitutes products of fossil origin with products of natural origin. In their quest for naturalness without compromising on performance, the cosmetics players are the Company’s first customers. By 2027, the Company will be operating its innovative process in a large-scale plant. By 2030, the Company plans to become a leader in the huge emerging market for sustainable aviation fuels, in order to fight against global warming. Global Bioenergies is listed on Euronext Growth in Paris (FR0011052257 – ALGBE). L’Oréal is its largest shareholder, with a 13.5% stake.

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• Global Bioenergies – strong progress in first half 2023