New Benfica Facility and Business Update from Eternali CEO

Nov 1, 2025

As summer winds down in Sweden, northern Brazil is entering its season of high temperatures and growing anticipation. Our team in Belém is working energetically and is especially excited for the upcoming UN Climate Conference, COP30, which the city will host this November.

Our biomass facility in Moju, opened a year ago, continues to operate steadily, producing and delivering to five customers. Feedback has been excellent — most recently, an audit by our customer Combio resulted in the highest possible rating. Demand continues to exceed our capacity — a positive challenge that confirms our strong market position. While most factors are within our control, customer demand isn’t one of them, so this is a very encouraging sign to the team in Moju - seen on the picture above.

At the end of last year, we began raising new capital from both existing and potential investors to fund our next biomass facility. Although those initial efforts did not yield the results we had hoped for, we have during the summer connected with investors who agreed to provide sufficient capital to finalize our next facility. This marks an important and long-awaited milestone, allowing us to move forward with our business plan and meet growing demand.

The new facility will be located in Benfica, in Benevides, just outside Belém — an ideal location with short transport distances to a large and growing customer base. Production and deliveries are expected to begin in early 2026. As this second facility will match the capacity of our first, we will effectively double our total production and potential revenue. At these volumes, our operating subsidiary will begin generating positive cash flow, which in turn will help cover costs at the parent-company level, mainly interest expenses and loan repayments.

Our goal is to continue expanding by financing and establishing additional production facilities. Suitable locations have already been identified, and with the next facilities financed and operational next year, we expect to generate sufficient cash flow to fund further growth internally — even after covering overhead and financing costs. This strong foundation will also allow us to launch our transatlantic business area, focusing on deliveries to the paper industry. Overall, we are very optimistic about our current position and future prospects.

This development would not have been possible without Eternali’s extensive cost-saving program. Over the past two years, no salaries have been paid to members of the management team according to their agreements. Instead, new arrangements allow management to invoice fees that can later be converted into shares if the company cannot pay in cash. This approach has drastically reduced cash outflows while keeping operations running and growth on track. It’s a strong testament to the management team’s dedication and belief in Eternali’s future. Frankly, without these efforts, Eternali might not have survived — or at least not developed as positively as it has. As CEO, I’m deeply grateful to my team for their commitment and perseverance.

I am convinced that we have proven our business model to be sustainable, with demand exceeding expectations. I have great confidence in our business plan, while recognizing that our valuation depends on our ability to scale production — which we are now achieving. Expanding production in Moju, adding another facility in Pará, and continuing with additional sites thereafter are key steps toward profitability — for both Eternali and our shareholders.

We deeply appreciate your continued trust and support as we work toward our long-term vision of becoming a leader in sustainable biomass production.

/Andreas Forssell, CEO Eternali