OSLO: Vow ASA is currently contemplating to spin off Vow Green Metals as a new and separate entity, which will remain wholly owned and part of Vow ASA, and act as an incubator for other potential spin-offs in the future.
Vow Green Metals will build, own, and operate plants that produce high value biocarbon and CO2 neutral gas for metallurgical industries. The company’s shares will be distributed to current Vow shareholders, and the company will aim for listing before summer of 2021.
“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. We will also produce CO2 neutral gas and other low-carbon fuels”, says Henrik Badin, CEO of Vow ASA.
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 respectively 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. 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 for Vow Green Metals include further expansion in the Nordics as well as larger production facilities to meet industry needs across Europe,” Badin says.
He notes that in addition to Elkem, Vow has recently signed co-operation agreements with ArcelorMittal, the world’s largest steel producer, the global energy company Repsol and Betula Energy, a start-up company in Norway.
According to earlier plans and announcements from Vow, the Follum plant and the company’s biocarbon initiatives were part of Vow Industries.
Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange (ticker VOW). www.vowasa.com