Status and outlook: Accelerating out of the starting block
Oslo, 25 February 2022 –Vow Green Metals AS (“Vow Green Metals”) reports progress as planned at its Follum plant and high and increasing interest for its main products: biocarbon and CO2 neutral gas. Interest is supported by strong regulatory and commercial drivers that push metallurgical industry to decarbonise.
Vow Green Metals was demerged and listed as a separate company in July 2021. By the end of the year, the company had ordered process equipment valued at NOK 215 million for its pioneering Follum project and signed an agreement for the supply of demolition wood feedstock for the plant. The first biocarbon from the plant is expected to reach market by the summer of 2023.
“We have got off to a good start, signing important agreements for delivery of process equipment and feedstock for our Follum plant, and we have recruited talented people and are preparing our organisation for growth. The reception in the market has been overwhelming,” said Cecilie Jonassen, CEO of Vow Green Metals.
Accelerating the green shift
Vow Green Metals is committed to accelerate the green shift and energy transition by producing biocarbon and CO2-neutral gas. The Follum plant is the first stage in the development of the company, which is in the process of lining up several more potential plants and projects for the coming years.
“As the cost of fossil natural gas, fossil coking coke and CO2 emissions continue to increase, our offering is becoming increasingly relevant for metal producers and other high-temperature industries. This trend will become even stronger since the customers of the metallurgical companies will be requiring carbon neutral materials to be competitive in 2030 and beyond,” said Jonassen.
A letter of intent that was signed in February this year with a global producer of non-ferrous metals is proof of this trend. As a first step, the metal producer has committed to reduce its carbon footprint by replacing 50,000 tonnes of fossil coke with biocarbon by 2025.
As a first step, the parties, which also include Vow ASA as technology provider, have agreed to undertake a joint feasibility study for the purpose of evaluating the potential to develop a biocarbon for non-ferrous metals production. The parties will map feedstock supply chains and establish a business model for off-take of CO2 neutral gas which is also a product of the biocarbon production process.
Pending the successful completion of the study and the verification of the biocarbon, Vow Green Metals and Vow will together present an initial commercial proposal to the producer later this year.
Second half 2021 financials
Vow Green Metals recorded an operating loss for 2nd half 2021 of NOK 9.03 million. The operating loss was due to expenses for the Euronext Growth Oslo stock exchange listing, employee expenses, and other operating expenses. Net loss after net financial items for was NOK 9.07 million.
Total non-current assets at the end of 2021 was NOK 74.9 and consist mainly of the ordering of process equipment for the Follum plant.
Total current assets were 69.4 million with a cash position of NOK 68.1 million.
At the end of 2021, total equity after retained earnings was NOK 141.1 million and total equity and liabilities amounted to NOK 144.3 million.
The company is fully funded for construction of Follum plant, financed with NOK 150 million in equity and in addition ENOVA grant of up to NOK 80.7 million.
See attached report for the second half of 2021 for further details
For more information, please contact
Cecilie Jonassen, CEO, Vow Green Metals AS
Tel: + 47 954 20 126
Email: cecilie.jonassen@vowgreenmetals.com
Lars Mårdalen, CFO, Vow Green Metals AS
Tel: +47 911 077 02
Email: lars.mardalen@vowgreenmetals.com
About Vow Green Metals
Vow Green Metals AS builds, owns, and operates plants that produce high value biocarbon for the metallurgical industry.
In order to decarbonise the metallurgical industry, there is a growing global interest in large scale pyrolysis plants, motivated by both environmentally friendly treatment methods for waste and for the production of biocarbon.
Vow Green Metals AS aims to provide solutions for the metallurgical industry and to meet the growing demand for industry decarbonising.
This information is subject to the disclosure requirements pursuant to the Continuing Obligations for Issuers of Shares in accordance with Oslo Rule Book II - Issuer Rules.