Norway-headed developer of production facilities for biocarbon and other carbon-neutral products Vow Green Metals AS, has announced that it has signed an agreement with governmental enterprise Siva Eiendom Holding AS (Siva), related to the buildings and infrastructure for the large-scale 20,000 tonnes-per-annum biocarbon facility under development at Hønefoss, Norway.
The two parties have signed a forward contract for the purchase of buildings and infrastructure and a leaseback agreement.
Siva will purchase the buildings and related infrastructure after completion of construction for NOK 151.5 million, which constitutes the combined property value under the terms of the forward contract.
VGM Operatør AS, a wholly owned subsidiary of Vow Green Metals, will lease the buildings and related infrastructure from Siva to operate its biocarbon production facility. The company will produce biocarbon and other carbon-neutral products enabling large-scale decarbonization of hard-to-abate industries.
Vow Green Metals’ large-scale biocarbon facility at Hønefoss, set to become one of Europe’s largest, will have a total annual production capacity of more than 20,000 tonnes of biocarbon and abatement potential of 100,000 tonnes of fossil carbon dioxide (CO2) per annum.
This is great news for all those who are cheering for new green industries. Our large-scale project at Hønefoss has been carefully reviewed along several parameters by Siva’s experts, and with this signing, Siva is not only putting its stamp of quality on the project, but they are also putting a stamp of quality on an entirely new green industry, said Cecilie Jonassen, CEO of Vow Green Metals.
National development interest
Founded in 1968, Siva (The Industrial Development Corporation of Norway) 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.
Siva facilitates growth and development in industry and business in Norway with a particular focus on accelerating green industries, and only a few projects every year are granted an investment agreement from the governmental enterprise.
Siva’s extensive network includes 39 business parks, 33 incubators, five Catapult centers, 71 innovation companies, and 40 real estate companies (2022).
Under the terms of the agreements, the Transaction is carried out as follows:
- Vow Green Metals Follum AS, a wholly owned subsidiary of VGM Operatør, in which Vow Green Metals holds 100 percent of the shares, will be the owner and construction client of the above-mentioned buildings and infrastructure.
- When the construction is completed, Siva will acquire 100 percent of the shares of Vow Green Metals Follum for NOK 151,552,230, taking over the ownership and obligations associated with the relevant buildings and related infrastructure under the terms of the signed forward contract.
- VGM Operatør has signed a long-term lease agreement for the buildings and infrastructure with Vow Green Metals Follum, which will become a wholly-owned subsidiary of Siva following the Transaction.
The Transaction will be completed when the construction of the buildings and related infrastructure in question is finalized and necessary permits and agreements for feedstock and biocarbon offtake are in place.
Vow Green Metals came to us with an impressive project combining a robust business case, significant climate effects, and positive ripple effects for society at large. We are excited to be part of building a new green industry with great potential, said Jan Morten Ertsaas, CEO of Siva.
