Vow Green Metals AS: Biocarbon supply agreement for the remaining volume at the Hønefoss facility signed with Outokumpu

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.