Vow ASA has revealed plans to ‘spin-off’ Vow Green Metals as a new, separate entity.
Vow Green Metals will build own, and operate plants that produce high-value biocarbon and CO2-neutral gas for metallurgical industries. The firm’s shares will be distributed to current Vow shareholders, and the company will aim for listing before the summer.
“With the launch of Vow Green Metals, we will be accelerating the green transition in the metallurgical industry, as our biocarbon will replace fossil coke as a reducing agent in metallurgical processes,” said Henrik Badin, CEO of Vow ASA. “We will also produce CO2-neutral gas and other low-carbon fuels.”
Vow Green Metals’ first plant is currently being planned at Follum in Eastern Norway for completion in 2022, pending financing and final investment decision.
Vow has already secured agreements with forest owner Viken Skog and municipal waste company Lindum to supply forest waste and waste wood as feedstock, and agreements with metals giant Elkem and district heating company Vardar to deliver biocarbon and CO2-neutral gas.
The plant at Follum will be designed and built by Vow, which will also provide the processing equipment. This will add between NOK 200 million and NOK 250 million to Vow ASA’s Landbased order backlog when the new company is spun-off and listed.
“Demand for biocarbon is expected to increase significantly in the next few years, driven partly by increasing CO2 taxation and corporate net-zero strategies,” said Badin.
“The demand for biocarbon in Norway alone is estimated at 400,000 tonnes annually by 2030. For comparison, initial capacity at Follum will be 10,000 tonnes per year. Our plans to Vow Green Metals include further expansion in the Nordics as well as larger production facilities to meet industry needs across Europe.”
Badin noted that, in addition to Elkem, Vow has recently signed co-operation agreements with ArcelorMittal, Repsol, and Betula Energy, a start-up company in Norway.