Vow Green Metals, a leading producer of biocarbon and other carbon-neutral
products, today signed a three-year biocarbon supply agreement with Outokumpu, a
global leader in sustainable stainless steel and a frontrunner in industrial
decarbonization.
The volumes will be delivered from Vow Green Metals' large-scale biocarbon
production facility under construction at Hønefoss, Norway. The company has
already entered into a long-term supply agreement covering 75 percent of the
project's production capacity with Elkem, one of the world's leading providers
of advanced silicon-based materials. With today's signed supply agreement,
Outokumpu secures offtake of the remaining 25 percent of the capacity from the
Hønefoss plant. Under the terms of the agreement, a take-or-pay clause covers 50
percent of the volume, underlining the mutual commitment from both companies.
"We are thrilled to note that we have sold out all available volumes from our
large-scale production facility under construction at Hønefoss. The project is
progressing well, on time and budget, and the plant will become operational
later this year. With today's agreement in place, we have partnered with two
reputed companies in the metallurgical industry, Elkem and Outokumpu, to deliver
biobased reduction materials to their processes. This is a clear recognition of
our ability to lead the way in enabling the metallurgical industry to
decarbonize their operations, said Chief Executive Officer of Vow Green Metals,
Cecilie Jonassen.
The three-year supply agreement between Vow Green Metals and Outokumpu will be
valid from the commencement of the first product delivery from the large-scale
production facility at Hønefoss. The parties intend to develop a long-term
collaboration and discuss future extensions of the supply agreement based on the
experiences and results achieved during the contract period.
The first phase of the large-scale Hønefoss facility is set to enter operations
during 2H 2025. The facility will become one of Europe's largest, with an
abatement potential of 100,000 tons of fossil CO2 p.a.
"The metallurgical industry is essential to our modern society and way of life,
and the leading companies in this sector have expressed clear and bold ambitions
to decarbonize in the short and long term. We are happy to partner with
Outokumpu, a company that has proven its ability and willingness to realize its
climate targets. At Vow Green Metals, we are proud to support their ambition to
produce increasing volumes of low-emission stainless steel products," said Chief
Executive Officer of Vow Green Metals, Cecilie Jonassen.
"Outokumpu is targeting to reduce emissions intensity from direct, indirect and
supply chain by 42 percent by 2030 from a 2016 base year. Efforts to replace
fossil coke with economically viable biomass-based alternatives is a key element
to reduce our direct emissions. With this offtake agreement, Outokumpu is
interested in supporting the further market development of high purity
biocarbon," said Timo Huhtala, General Manager, Outokumpu EvoCarbon.
ENDS
For further information, please contact:
Mathias Nilsen Reierth, Director of Corporate Affairs and Commercial, Vow Green
Metals AS.
Tel: + 47 988 05 724
Email: mathias.reierth@vowgreenmetals.com
About Vow Green Metals
Vow Green Metals' strategy is to be a leading producer of biocarbon and other
carbon-neutral products that enable the green transition in hard-to-abate
industries. We are on a mission to accelerate the world's transition to
renewable materials by offering green alternatives to replace fossil reduction
agents in the metallurgical industry. The core of our business is to build, own
and operate biocarbon production plants using state-of-the-art pyrolysis
technology to turn biomass and biomass waste-streams into our core product,
biocarbon. Our biocarbon production process also creates other valuable products
like bio-oil and bioenergy. With our standardized solutions, unique access to
proprietary technology, and a growing global pipeline of projects, we are
upholding our first-mover position in a growing market where speed and scale
will be determining factors. Vow Green Metals is building a new biocarbon
industry on the shoulders of its largest shareholder and technology partner, Vow
ASA, which provides access to competence and capabilities acquired through
decades of industrial innovation.
Read more: www.vowgreenmetals.com
About Outokumpu
Outokumpu is accelerating the green transition as the global leader in
sustainable stainless steel. Our business is based on the circular economy: our
products are made from 95% recycled materials, which we then turn into fully
recyclable stainless steel. This steel is utilized in various applications
across society, including infrastructure, mobility, and household appliances. We
are committed to 1.5°C target to mitigate climate change, and with up to 75%
lower carbon footprint than the industry average, we support our customers to
reduce their emissions. Together, we are working towards a world that lasts
forever. Outokumpu Corporation employs approximately 8,500 professionals in
close to 30 countries, with headquarters in Helsinki, Finland and shares listed
in Nasdaq Helsinki.
Read more: www.outokumpu.com
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation article 7 and is subject to the disclosure requirements
pursuant to MAR article 17 and section 5-12 of the Norwegian Securities Trading
Act. This stock exchange announcement was published by Mathias Nilsen Reierth,
Director of Corporate Affairs and Commercial, Vow Green Metals AS, on 8 January
2025 at CET 07:00.