Vow ASA : Signed LoI with Elkem to deliver biocarbon from Follum plant

Vow ASA’s wholly owned subsidiary Vow Industries and Elkem, one of the world’s leading suppliers of silicon-based advanced materials, have signed a Letter of Intent (LoI) to join forces with the aim of reducing fossil CO2-emissions from the production of silicon and ferrosilicon products for the global market.The two companies will join competence and technology solutions to develop and manufacture biocarbon and other products for Elkem’s production processes. The biocarbon will be produced at Vow Industries planned plant at Follum, outside Oslo in Norway, from a sustainable feedstock comprised of forestry wood mass, wood waste and other wood materials.“Elkem is one of the world’s leading companies in the environmentally responsible manufacturing of advanced material solutions, and we believe that sustainability is increasingly a competitive advantage. Using climate-neutral renewable biocarbon instead of fossil coal as a reduction agent is a key part of our sustainable production strategy. Through our activities in biocarbon, like this exciting cooperation with Vow Industries, we aim to secure long-term access to low-cost, high-quality renewable biocarbon to replace fossil reduction material, and further improve our competitive position for the sustainable future,” says CEO of Elkem, Michael KoenigElkem already uses close to 20 per cent biocarbon in its production in Norway and the company is working towards increasing this to 40 per cent by 2030. Elkem also sources 83 per cent of its  electricity consumption from renewable energy. The company recently received an “A” rating by CDP, ranking among the world’s leading companies on climate transparency and action. CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.Vow Industries’ planned plant will initially produce around 10 000 tonnes of biocarbon, but it can easily be scaled up to more capacity when needed. Vow Industries plan to build, own and operate the plant, which will become the centre of a new circular and sustainable industrial cluster at Follum.“We are pleased to wish Elkem welcome as our partner at Follum. We see large industrial groups are undergoing a significant restructuring in order to achieve their goals of CO2 neutrality, and having a front-runner like Elkem as part of the team will help us accelerate development of the project”, says Henrik Badin, CEO of Vow ASA.Other visionary and committed partners involved in the development of the plant at Follum are Viken Skog, a large regional forest owner, the regional waste and sewage company Lindum, and Vardar Varme, a municipal energy company. Viken Skog will provide biomass as feedstock for the plant. Lindum will deliver waste wood, while Vardar will use syngas, also a product from the plant, as a CO2 neutral source of energy in its district heating system.The plant at Follum will be developed in stages and financed in part through grants from Enova, Norway’s state enterprise promoting innovation within energy and climate technology, and in part through debt and equity. A final investment decision will be made when the result of the Enova application is confirmed. According to current plans, plant will be operational in summer 2022.More information about the Follum plant is available here [link to Newsweb announcement 15 December 2020].
For further queries, please contact:
Vow ASA
Henrik Badin – CEO
Tel: + 47 90 78 98 25
Email: henrik.badin@vowasa.com
About Vow ASA
In Vow and our subsidiaries Scanship and Etia we are passionate about preventing pollution. Our advanced technology and world leading solutions purify wastewater and convert biomass and waste into valuable resources and generate clean energy for a wide range of industries, which as part of their own transition are looking for low carbon fuels, carbon neutral energy, decarbonised gas, and biocarbon.We have delivered technology to a wide range of industries for many years. Our solutions are scalable, standardized, patented, and thoroughly documented, and our capabilities are well proven in concrete projects and deliveries.In 2020, Vow established Vow Industries. This subsidiary will build, own, and operate plants that deliver industry decarbonisation as a service, thereby accelerating the green transition within waste and biomass valorisation and energy production.Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange (ticker VOW).
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.