VGM: Siva to invest NOK 152 million in large-scale biocarbon production at Hønefoss

Siva will purchase the buildings and related infrastructure at the completion of construction for NOK 151 552 230, which constitutes the combined property value under the terms of the forward contract. VGM Operatør AS, a wholly owned subsidiary of Vow Green Metals, will lease the buildings and related infrastructure from Siva to operate its biocarbon production facility. The company will produce biocarbon and other carbon-neutral products enabling large-scale decarbonization of hard-to-abate industries.

Vow Green Metals’ large-scale biocarbon facility at Hønefoss, set to become one of Europe’s largest, will have a total production capacity of more than 20,000 tons of biocarbon and an abatement potential of 100,000 tons of fossil CO2 p.a. Siva facilitates growth and development in industry and business in Norway with a particular focus on accelerating green industries, and only a few projects every year is granted with an investment agreement from the governmental enterprise.

“This is great news for all those who are cheering for new green industries. Our large-scale project at Hønefoss has been carefully reviewed along several parameters by Siva’s experts, and with this signing, Siva is not only putting its stamp of quality on the project, but they are also putting a stamp of quality on an entire new green industry,” said Chief Executive Officer of Vow Green Metals, Cecilie Jonassen.

“Vow Green Metals came to us with an impressive project combining a robust business case, significant climate effects and positive ripple effects for society at large. We are excited to be part of building a new green industry with a great potential” said Chief Executive Officer of Siva, Jan Morten Ertsaas. Under the terms of today’s signed agreements, the Transaction is carried out as follows:

Vow Green Metals Follum AS, a wholly owned subsidiary of VGM Operatør AS, in which Vow Green Metals AS holds 100 percent of the shares, will be the owner and construction client of the above-mentioned buildings and infrastructure. When the construction is completed, Siva will acquire 100 percent of the shares of Vow Green Metals Follum AS for NOK 151 552 230, taking over the ownership and obligations associated with the relevant buildings and related infrastructure under the terms of the signed forward contract. VGM Operatør AS has signed a long-term lease agreement for the buildings and infrastructure with Vow Green Metals Follum AS, which will become a wholly owned subsidiary of Siva following the Transaction. The Transaction will be completed when the construction of the buildings and related infrastructure in question is finalized and necessary permits and agreements for feedstock and biocarbon offtake are in place.