Norwegian green technology developer Vow ASA has disclosed that Enova, a government agency under the Norwegian Ministry of Climate and Environment, has confirmed an investment grant of up to NOK 80.7 million (≈ EUR 8 million) to support Vow’s project for industrial production of biocoal for the metallurgical industry at Follum in Eastern Norway.
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In December 2020, Vow’s wholly-owned subsidiary, Vow Industries, announced plans to build a biocoal plant at Follum near Hønefoss. According to Vow, the grant is another important step towards the final investment decision for the project.
We are very enthusiastic and grateful for Enova’s decision. By awarding this grant, Enova will be playing an important role in the promotion of technology that will help the metallurgical industry decarbonize, said Henrik Badin, CEO of Vow.
The plant at Follum will be owned and operated by Vow Green Metals, currently a wholly-owned subsidiary of Vow. A demerger of Vow Green Metals is planned with a subsequent listing, likely before summer this year.
As part of this plan, Vow has already provided NOK 150 million (≈ EUR 14.85 million) in funding to Vow Green Metals.
Design and build
The plant at Follum will be designed and built by Vow, which will also provide the processing equipment. This will add more than NOK 200 million (≈ EUR 19.8 million) to Vow’s order backlog when Vow Green Metals is spun off, and which will convert into revenues for Vow over the next 12-18 months.
Vow’s ambition for Vow Green Metals goes far beyond the plant at Follum. Demand for biocarbon is expected to increase significantly in the next few years, driven partly by increasing carbon dioxide (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, the initial capacity at Follum will be 10 000 tonnes per annum.
Our plans for Vow Green Metals include further expansion in the Nordics as well as larger production facilities to meet industry needs across Europe, ended Henrik Badin.
