Climate Change Data

Everfuel A/S

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Health and Safety
  • Diversity

Environmental Achievements

  • Minimizing emissions and waste

Social Achievements

  • Maintained a proactive approach to minimize risk of business interruption caused by the Covid-19 pandemic
  • As at 31 December 2020, Everfuel had 16 employees, of which 75% were male and 25% female.

Governance Achievements

  • Intends to implement the relevant recommendations for good company governance over time

Climate Goals & Targets

Long-term Goals:
  • Vision of a decarbonized world by 2050
Medium-term Goals:
  • Delivering EUR 1 billion of annualized revenue with 30-35% EBITDA margin before 2030
Short-term Goals:
  • EBITDA positive from 2023 onwards

Environmental Challenges

  • Covid-19 pandemic
  • Financial risks (requiring additional capital)
  • Fluctuations in renewable power prices
  • Risks related to investments in production facilities, hydrogen stations, and distribution systems
  • Early-stage markets for hydrogen fueling products and services
  • Risks of delay and cost overruns in large projects
  • Reliance on a limited number of third-party suppliers
  • Operational and company-specific risks in acquisitions
  • Inability to adequately protect proprietary rights
  • Legal and regulatory risks (including government subsidies)
  • Environmental requirements and regulations
Mitigation Strategies
  • Adhering to local and national public health regulations and recommendations to minimize the spread of the coronavirus with extensive use of home offices and limitations on travel
  • Seeking to mitigate significant risk areas with commercially available insurance products
  • Considering offerings of debt, equity, or a combination thereof to fund expansion or other liquidity needs
  • Continuous risk monitoring and management
  • Seeking to protect important proprietary information
  • Working with a continuously growing pipeline of potential end-user contracts for supply of green hydrogen

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers, State Authorized Public Accountants

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmentally Conscious Operations
  • A Strong Governance Framework
  • Safe and Secure Operations

Environmental Achievements

  • Established the first-ever entire value chain for locally produced green hydrogen with the start of distribution from the Siemens Gamesa’s pilot project in Brande, Denmark.
  • Started construction of the 20 MW green hydrogen production facility next to Crossbridge Energy’s refinery in Fredericia, Denmark.
  • Signed a heat offtake agreement with TVIS where surplus heat from hydrogen production at HySynergy will be used in the local district heating network.

Social Achievements

  • Increased number of employees from 16 to 54.
  • Maintained a 2% employee turnover rate.
  • Established a HSE hotline for immediate reporting on any potential issues.

Governance Achievements

  • Established a QHSE Management System, ISO 9001-certified.
  • Zero reported cases of bribery and corruption in 2021.
  • Adopted a yearly control system to ensure compliance with GDPR.

Climate Goals & Targets

Long-term Goals:
  • Vision of a decarbonised world by 2050.
Medium-term Goals:
  • Establish a network with 40 to 50 H2 stations connecting the main cities and main traffic corridors by the end of 2023.
  • Reach EUR 1 billion of annualised revenue with 30-35% EBITDA margin before 2030.
Short-term Goals:
  • Replace trucks with fuel-cell vehicles using green hydrogen as soon as they become commercially available.
  • Implement the same transition for the company’s service vans.

Environmental Challenges

  • Covid-19 pandemic influencing business operations.
  • Geopolitical risks due to the Russian invasion of Ukraine.
  • Financial risks related to raising additional capital for expansion.
  • Operational and technology risks related to being a first mover in the market.
  • Fluctuations in renewable power prices.
  • Risks related to investments in and development of production facilities, hydrogen stations and distribution systems.
  • Early stage markets for hydrogen fuelling products, services and fuel cell vehicles.
  • Dependency on a limited number of third-party suppliers.
  • Cybersecurity risks related to critical infrastructure.
Mitigation Strategies
  • Adhering to local and national public health regulations and recommendations to minimise the spread of the corona virus with extensive use of home offices and limitations on travel.
  • Securing that the Group only enters into business with banks with high credit ratings.
  • Considering offerings of debt, equity or a combination thereof to fund expansion.
  • Proactive work towards meeting the Danish BEK820/BEK2647 IT security and preparedness standards.
  • Developing secure internal systems and procedures.
  • Securing multiple customers with strong commitments to reduce the financial risk of building new H2Stations.
  • Implementing a QHSE Management System to support the execution of and continuous improvement to its framework of working procedures and instructions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001

UN Sustainable Development Goals

  • All 17 SDGs

Everfuel supports all 17 SDGs, and the Company is currently analysing which SDGs are most material for Everfuel and its stakeholders.

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmentally Conscious Operations
  • A Strong Governance Framework
  • Safe and Secure Operations

Environmental Achievements

  • Produced first hydrogen at the 20 MW HySynergy electrolyser in December 2022.
  • Signed a long-term agreement with Crossbridge Energy A/S for hydrogen supply from HySynergy.

Social Achievements

  • Increased number of employees to 81 (from 54 in 2021), with 25% female representation.
  • Reduced HSE-related incidents to one (from two in 2021).

Governance Achievements

  • Established an ESG committee.
  • Engaged an external ESG consultant to support development and implementation of ESG strategy.

Climate Goals & Targets

Long-term Goals:
  • Deliver EUR 1 billion of annualised revenue with 30-35% EBITDA margin before 2030.
Medium-term Goals:
  • Expand HySynergy capacity to 1 GW by 2030.
  • Achieve full compliance with ISO 14001:2015 & 45001:2018 by the end of 2023.
Short-term Goals:
  • Mapping carbon footprint in scope 1, 2 and 3.
  • Establishing a framework for monitoring, measuring and reporting environmental footprint and emissions.

Environmental Challenges

  • Supply chain challenges and inflationary pressures leading to increased investments in HySynergy.
  • Limited ESG metrics to report on due to being a young company.
Mitigation Strategies
  • Implementing lessons learned at HySynergy into future electrolyser projects.
  • Initiated an ESG strategy process in 2023 to develop a framework for ESG reporting and improve ESG integration into strategy.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001:2015

UN Sustainable Development Goals

  • Goal 7 - Affordable and clean energy
  • Goal 13 - Climate action

Green hydrogen production and distribution contribute to affordable and clean energy and climate action.

Sustainable Products & Innovation

  • Everfiller, a flexible and fully mobile hydrogen fuelling solution.

Awards & Recognition

  • HySynergy appointed as a Flagship project by Hydrogen Europe

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:98,899 kg CO2e (hydrogen distribution); 15,792 kg CO2e (pre-startup hydrogen production tests)

ESG Focus Areas

  • Environmentally Conscious Operations
  • Safe and Secure Operations
  • A Strong Governance Framework

Environmental Achievements

  • 41% of fuel used for hydrogen distribution was HVO, representing a CO2e displacement factor of ~x10 to conventional diesel. Total CO2e emissions from hydrogen distribution for the year was 98,899 kilograms.
  • Zero HSE incidents in 2023 (compared to one in 2022).

Social Achievements

  • Implemented an organisational restructuring in Q3 2023, reducing the number of full-time positions; facilitated various initiatives and recommendations for future job applications for affected employees.
  • Zero reports of potential misconduct or grievances were made using the pre-existing reporting channels in 2023 (2022: zero).

Governance Achievements

  • QHSE Management System was ISO 9001:2015 recertified during the year.
  • Implemented a whistleblower platform compliant with Danish requirements for companies with more than 50 employees (since December 8, 2023).

Climate Goals & Targets

Long-term Goals:
  • Be among the first companies in Europe to exceed EUR 1 billion in annual revenue from green hydrogen sales.
Medium-term Goals:
  • Final investment decision on HySynergy 2 (2025).
  • Establish a relevant framework for monitoring, measuring and reporting the Company’s environmental footprint and emissions (2024).
Short-term Goals:
  • Start of production and commercial supply of green hydrogen from HySynergy 1 facility (Q2 2024).

Environmental Challenges

  • Immature technology, project complexities, supply chain constraints and cost inflation impacting operational, commercial and financial development.
  • Protracted political processes, delays in the roll-out of hydrogen vehicles and increased cost of capital impacting the pace of growth.
  • Technical challenges impacting project execution and operations (e.g., hydrogen trailer valve leaks).
Mitigation Strategies
  • Proactive focus on large-scale electrolyser facilities and mobility solutions for heavy-duty transport.
  • Streamlined organisation to optimise operations, commercial activities and reduce costs.
  • Decommissioned unprofitable legacy car stations.
  • Strategic collaboration agreement with Hy24 for EUR 200 million investment in large-scale green hydrogen infrastructure.
  • Strategic collaboration with ITOCHU and Osaka Gas.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001:2015

UN Sustainable Development Goals

  • Goal 7 - Affordable and clean energy
  • Goal 13 - Climate action

Everfuel’s mission is to enable European-wide production, distribution and refuelling of green hydrogen to industry and mobility customers at prices competitive to natural gas, gasoline and diesel.