Kyoto Group, together with its financial partner, Kyotherm, and its energy trading partner in Hungary, Energiabörze Kft, has signed a term sheet for delivering Heat-as-a-Service (HaaS) to KALL Ingredients Kft. The signed term sheet with KALL Ingredients builds on the letter of Intent reported by Kyoto on a no-name basis on 10 January 2023. The term sheet outlines the commercial conditions for the heat purchase agreement that the parties aim to sign by the end of October.

KALL Ingredient?s Heatcube will replace the current natural gas supply and is designed with 56 MWh of storage capacity, offering an annual capacity of more than 30 GWh. This will result in a CO2 reduction of up to 8,000 tons annually. After the signing of this term sheet the partners will establish a Hungarian legal entity (SPV) that will enter into the Heat-as-a-Service agreement with KALL, with Kyotherm as the majority investor, Energiabörze, as the minority investor, and Kyoto Group as the solution provider.

The SPV will simultaneously purchase the Heatcube from Kyoto Group. Heatcube at KALL Ingredients will operate as an asset in the flexibility markets and utilize intermittent renewable energy whenever available while supplying a constant flow of steam for industrial production. The parties aim to sign the commercial contract by the end of October and to install Heatcube within 2024.