Vow Green Metals AS reports progress as planned at its Follum plant and high and increasing interest for its main products: biocarbon and CO2 neutral gas. Interest is supported by strong regulatory and commercial drivers that push metallurgical industry to decarbonise.
Vow Green Metals was demerged and listed as a separate company in July 2021. By the end of the year, the company had ordered process equipment valued at NOK 215 million for its pioneering Follum project and signed an agreement for the supply of demolition wood feedstock for the plant. The first biocarbon from the plant is expected to reach market by the summer of 2023.
“We have got off to a good start, signing important agreements for delivery of process equipment and feedstock for our Follum plant, and we have recruited talented people and are preparing our organisation for growth. The reception in the market has been overwhelming,” said Cecilie Jonassen, CEO of Vow Green Metals.
Accelerating the green shift
Vow Green Metals is committed to accelerate the green shift and energy transition by producing biocarbon and CO2-neutral gas. The Follum plant is the first stage in the development of the company, which is in the process of lining up several more potential plants and projects for the coming years.
“As the cost of fossil natural gas, fossil coking coke and CO2 emissions continue to increase, our offering is becoming increasingly relevant for metal producers and other high-temperature industries. This trend will become even stronger since the customers of the metallurgical companies will be requiring carbon neutral materials to be competitive in 2030 and beyond,” said Jonassen.
A letter of intent that was signed in February this year with a global producer of non-ferrous metals is proof of this trend. As a first step, the metal producer has committed to reduce its carbon footprint by replacing 50,000 tonnes of fossil coke with biocarbon by 2025.
As a first step, the parties, which also include Vow ASA as technology provider, have agreed to undertake a joint feasibility study for the purpose of evaluating the potential to develop a biocarbon for non-ferrous metals production. The parties will map feedstock supply chains and establish a business model for off-take of CO2 neutral gas which is also a product of the biocarbon production process.
Pending the successful completion of the study and the verification of the biocarbon, Vow Green Metals and Vow will together present an initial commercial proposal to the producer later this year.
