NEWS

Governmental enterprise, Siva, is taking ownership of the buildings housing Vow Green Metals’ (VGM) new large-scale biocarbon production plant at Treklyngen Industrial Park in Hønefoss. The plant will be one of the largest of its kind in Europe and is expected to cut fossil emissions by up to 100,000 tons annually.

“Siva’s investment helps breathe new life into an old industrial site and is important for building a new green industry,” said Minister of Trade and Industry, Cecilie Myrseth.

A new collaboration model

The acquisition is carried out through Siva’s purchase of the real estate holding company, Vow Green Metals Follum AS, which owns the buildings and related infrastructure of the biocarbon production plant. The company has now been renamed Siva Treklyngen Eiendom AS. The purchase agreement with Vow Green Metals was signed in November 2023 and entails that Siva will take over the real estate holding company once the construction project is completed. The project has a value of approximately NOK 152 million.

With the transaction completed, Siva becomes the owner and manager of the building facilities, while VGM will lease the building, operate the plant, and own the process equipment installed. This represents a new model for Siva. Instead of acting as the developer, Siva has primarily been a capital partner to VGM, which has managed the construction itself. “The takeover marks a milestone for Siva. We have acted as a catalyst and helped ease the capital burden in the project, giving us valuable experience with new collaboration models that we can apply to future green industrial projects,” said Steinar Jørstad, Director of Ownership and Property at Siva.

Cutting emissions

Vow Green Metals’ large-scale facility in Hønefoss will produce more than 20,000 tons of biocarbon annually, to be used as a fossil-free reducing agent in the metallurgical industry. The first phase of the plant will become operational towards the end of this year. For every ton of biocarbon that replaces fossil coal, CO₂ emissions are reduced by four to five tons. At full capacity, the annual effect is estimated at around 100,000 tons of avoided fossil emissions. According to the Norwegian Environment Agency’s knowledge base for 2025, the potential for emission cuts from using biocarbon in place of fossil coal in the smelting industry exceeds 1.4 million tons of CO₂ equivalents in 2030.

Demand for biocarbon as a substitute for fossil coal is increasing, and the entire production capacity of the Hønefoss facility has already been sold to industry giants Elkem and Outokumpu. Vow Green Metals aims to become a leading biocarbon producer in Europe, with plans to establish several new plants and reach a total capacity of 200,000 tons by 2030.

“Siva’s investment and willingness to take ownership of the buildings have been crucial in realizing our first large-scale facility. It allows us to fully focus on our core business of producing biocarbon that supports a more sustainable metallurgical industry. Together we have laid an important foundation for building a new green industry in Norway,” said Cecilie Jonassen, CEO of Vow Green Metals.

For more information please contact: Siva SF Steinar Jørstad Director of Ownership and Property Tel: +47 90 91 35 85 Email: steinar.jorstad@siva.no

Vow Green Metals Mathias Nilsen Reierth Director of Corporate Affairs and Commercial Tel: +47 988 05 724 Email: mathias.reierth@vowgreenmetals.com

About Siva (The Industrial Development Corporation of Norway) Siva is a governmental corporation and national instrument founded in 1968. The company operates under the Norwegian Ministry of Trade and Industry, and is part of the national incentive structure for innovation.