NEWS

Vow and Betula Energy have entered into an agreement whereby Vow will supply technology and equipment to produce biocarbon to a new plant that Betula Energy will establish in Bamble, a municipality in South-East Norway. At this location, Betula Energy, which is the new name of former entity BioGren AS, will establish bioenergy and biocarbon production from forest wood mass in the form of pellets, biocarbon and bio-oils.

Demand for biocarbon in the Nordic region is expected to increase significantly in the next few years. Large, international industrial groups are undergoing a significant green transformation to achieve their goals of significant reductions in the use of fossil coal by 2030. Biocarbon has qualities that enable it to replace fossil coal as a reducing agent in the metallurgical industry.

"Technology and solutions from Vow will play a key role in this change. We are in the process of showing not only the Norwegian, but also the international industry, that we have technological solutions that accelerate the green energy transition," says Henrik Badin, CEO of Vow ASA.

The plant in Bamble will be the second in Norway where Vow's technology is used in this way. At Follum near Hønefoss, Vow's wholly owned subsidiary Vow Industries plans to build a similar plant. Here, wood waste from the forest industry and recycled wood from the construction industry will be converted into CO2-neutral energy in the form of biocarbon for the metallurgical industry, gas for district heating, and bio-oils for the petrochemical industry, Badin continues.

Synergies in the production of bioenergy are important Betula Energy will produce homogeneous wood particles as a raw material and feedstock for one production line for biocarbon for the metallurgical industry, and one production line for wood pellets as a replacement for fossil coal in thermal power plants. With such configuration, synergies can be achieved by using the syngas from biocarbon production to dry wood particles for both production lines. Betula Energy will handle reception, cutting, drying, and pelleting for both production lines. This provides economies of scale.

“At the Betula Energy's facility, detailed control of production is planned through all stages to ensure the desired and consistent quality of the products. The choice of Vow's technology is consistent with this principle and will ensure the quality of the biocarbon produced, says Gisle Hegstad, general manager of Betula Energy.

Vow will supply the process equipment for the biocarbon production, and orders will be placed by Betula Energy once they have secured financing planned within 2021. For Vow, this order may result in the delivery of process equipment worth up to NOK 200 million.

Market with great potential Today, the metallurgical industry in Norway consumes annually close to one million tonnes of fossil based reducing agents. This corresponds to around seven percent of the nation’s CO2 emissions. In the Nordic countries, this consumption is four-five times greater. The market for biocarbon is already large and growing. The first construction phase for Betula Energy will be able to produce 15,000 tonnes of green and climate-neutral biocarbon, and corresponding volumes of bio-oils.

For further queries, please contact: Vow ASA Henrik Badin – CEO Tel: + 47 90 78 98 25 Email: henrik.badin@vowasa.com

About Vow ASA In Vow and our subsidiaries Scanship and Etia we are passionate about preventing pollution. Our advanced technology and world leading solutions purify wastewater and convert biomass and waste into valuable resources and generate clean energy for a wide range of industries, which as part of their own transition are looking for low carbon fuels, carbon neutral energy, decarbonised gas, and biocarbon. We have delivered technology to a wide range of industries for many years. Our solutions are scalable, standardized, patented, and thoroughly documented, and our capabilities are well proven in concrete projects and deliveries. In 2020, Vow established Vow Industries. This subsidiary will build, own, and operate plants that deliver industry decarbonisation as a service, thereby accelerating the green transition within waste and biomass valorisation and energy production. Located in Oslo, the parent company Vow ASA is listed on the Oslo Stock Exchange (ticker VOW).

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.