Kyoto Group has entered into a set of agreements to deliver Heat-as-a-Service (HaaS) to the Hungarian food ingredient producer KALL Ingredients Kft while also acting commercially as a balancing asset on the grid. The signed Heat-as-a-Service agreement with KALL Ingredients builds on the letter of Intent reported by Kyoto on a no-name basis on January 10th 2023 and the term sheet announced August 22nd 2023. The 15-year HaaS agreement outlines the commercial conditions for delivering high quality steam to one of the newest corn processing plants in Europe, installed as a greenfield investment of EUR 145 million in 2017.

The plant can process up to 530,000 tons of non-GMO corn per year, to produce alcohol for the pharmaceutical & food industries, syrups (sweeteners) for the food industry and ingredients for animal feed, under strict food safety and pharmacopoeial regulations. The partners have established a Hungarian legal entity (SPV) that has entered into the Heat-as-a-Service agreement with KALL, with Kyotherm as the majority investor, Energiabörze, as the minority investor. Kyoto Group will also be granted some cash-flow from the SPV, as the project developer.

The SPV has purchased the Heatcube from Kyoto Group.