Company Announcements

11 November 2024

Kistos Holdings plc

("Kistos" or "the Company")

Direct Sustainability Investment in Next-Generation Tidal Power

Kistos (LON: KIST), an independent energy company focused on generating value across the upstream and midstream markets, announces an investment in Spiralis Energy Ltd ("Spiralis Energy"), Spiralis Energy Ltd ("Spiralis Energy"), a tidal energy business.

As part of Kistos' commitment to the energy transition and meeting its own sustainability objectives, the Company has identified and invested in Spiralis Energy's tidal technology, which is at an advanced stage of testing and has the potential to revolutionise the tidal energy industry.

Spiralis Energy has developed the Axial Skelter tidal power solution, a unique proposition in the tidal energy industry made from fully recyclable, 3D-printed segments. The entire tidal energy generator can be produced in less than a week with the individual segments of the Axial Skelter easily transported, maintained and, if required, replaced.  A demonstration of Spiralis Energy's Axial Skelter can be viewed here

Supported by Kistos' investment, Spiralis Energy will undertake a long term survivability test of the Axial Skelter. This will demonstrate the operational resilience of the Axial Skelter and could lead to widescale deployment to provide a sustainable energy generation capability.

As a cost effective way to mitigate our carbon impact, Kistos has agreed to take an equity interest of up to 20% in Spiralis Energy Ltd through 10% equity and 10% warrants for an investment of £800,000. Kistos has the right to have board representation.  

Andrew Austin, Executive Chairman of Kistos, commented:

"Kistos is committed to supporting the energy transition and believes this can be done whilst exposing shareholders to asymmetric value accretive opportunities. Our investment in Spiralis follows extensive due diligence on the business, its technology and commercial strategy and the tidal power sector and current market participants. Providing financial backing at this stage, with imminent final testing and the potential for commercial deployment shortly thereafter, meets our risk profile for this investment.

Whilst as a management team our priority remains to seek value accretive opportunities in hydrocarbons, this investment offers a path to meet our stated sustainability commitments in conjunction with providing direct upside exposure and influence not available with traditional offsetting initiatives."

Notes to editors

Kistos Holdings plc was established to acquire and manage companies in the energy sector engaging in the energy transition trend. The Company has undertaken a series of transactions including the acquisition of a portfolio of highly cash generative natural gas production assets in the Netherlands from Tulip Oil Netherlands B.V. in 2021. This was followed in July 2022, with the acquisition of a 20% interest in the Greater Laggan Area (GLA) from TotalEnergies, which includes four producing gas fields and a development project. In May 2023, Kistos completed the acquisition of Mime Petroleum A.S. adding 24 MMboe of 2P reserves and significant production. In April 2024, Kistos completed the acquisition of UK gas storage assets, which due to the fast cycle nature of the facility, can deliver up to 11% of the UK's flexible daily gas capacity if called upon.

Kistos is a low-carbon intensity energy producer with Estimated Scope 1 CO₂e emissions from our operated activities offshore Netherlands of less than 0.01 kg/boe in 2023 (excluding necessary flaring during drilling campaigns).