Elkem Rana invests NOK 140 million in new infrastructure to increase productivity and reduce emissions

Rhea-AI Summary

Elkem has committed NOK 140 million to enhance its Rana production facility in Norway, focusing on reducing CO2 emissions through increased biocarbon usage. This investment will facilitate the use of wood chips as biocarbon, aiming to raise the share of emissions from renewable sources to 40% by 2030, up from the current 20%. Supported by NOK 70 million from the NOx fund, the project also aims to boost productivity and improve emissions, equating the NOx reduction to removing 20,000 diesel cars from the roads. Additionally, Elkem has a strong record in sustainable practices and has previously achieved commendations for its environmental performance.

Positive

• Investment of NOK 140 million to upgrade Rana facility enhances biocarbon usage.
• Target to increase renewable biogenic emissions to 40% by 2030.
• NOK 70 million supported by grants from the NOx fund.
• NOx emission reduction equivalent to removing 20,000 diesel cars.
• Strong commitment to sustainability recognized by EcoVadis and CDP.

Negative

• None.

STOCKHOLM, May 28, 2021 /PRNewswire/ -- Elkem has a long-term goal to reduce CO2 emissions through increased use of biocarbon. As an important step in this effort, Elkem today announces NOK 140 million in investments in new infrastructure at its production site in Rana, Norway, enabling usage of wood chips as biocarbon. In addition, an improved charging and water handling system contributes to more efficient and safe production with reduced emissions.

Elkem aims to increase its share of emissions based on renewable biogenic sources to 40% by 2030. The company has already reached 20% of direct CO₂ emissions based on renewable biogenic sources in Norway in 2020. The nature of the sources makes these emissions carbon neutral.

"This investment in infrastructure for wood chips at Elkem Rana constitutes an attractive opportunity to both improve furnace operating yield and reduce CO₂ and NO_x emissions through increased use of biocarbon. The investment will increase Elkem Rana's biogenic share and reduce NOx emissions. The reduction in NOx is similar to removing close to 20,000 diesel cars from the road. Our long-term goal is to grow the biocarbon share towards 40%," says Inge A. Grubben-Strømnes, SVP for Silicon Products in Elkem.

Elkem Rana provides specialty and standard ferrosilicon products to the global steel market, as well as Elkem Microsilica, a key ingredient in many advanced construction materials.

"The Elkem Rana plant is already based on renewable hydropower and the energy recovery represents approximately 15% of the electricity input. With today's new investment, we secure another important upgrade of our production facility in Rana, that contribute to the modernisation of production both in the form of improved safety, increased capacity and lower emissions," says Frode Johan Berg, plant manager at Elkem Rana.

The total investment related to the project is NOK 140 million, of which NOK 70 million is supported by grants from the Norwegian NO_x fund.

"Elkem has reduced emissions from their plants in Norway significantly over the last decade, most of them with financial support from the NO_x Fund, and with impressive results. The project at Elkem Rana, adds another milestone to their work to reduce their own emissions, to move Norway towards a zero emission society and to establish a low-emission baseline for their industry sector," says Tommy Johnsen, general manager of the NO_x Fund.

Elkem has a broad approach to environmentally friendly material and metal production, including through several biocarbon initiatives around the world.

In 2020, Elkem decided to invest in a new biocarbon pilot plant in Canada. Elkem is also involved in work to develop competitive and sustainable sources of biocarbon as well as longer-term R&D projects. In 2019, Elkem's plant in Paraguay achieved 100% sustainable biocarbon in its production of ferrosilicon as a pioneer plant in Elkem and the metals industry. 

In 2020, Elkem was awarded a Gold level rating by EcoVadis for the company's sustainability performance and corporate social responsibility and an A-rating from CDP, ranking Elkem among the world's leading companies on climate transparency and action.

For more information:

Odd-Geir Lyngstad, VP Finance & Investor Relations, Elkem ASA

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.no

Fredrik Norman, VP Corporate Communication and Public Affairs, Elkem ASA

Tel: +47 918 66 567

Email: fredrik.norman@elkem.no

About Elkem

Elkem is one of the world's leading providers of advanced material solutions shaping a better and more sustainable future. The company develops silicones, silicon products and carbon solutions by combining natural raw materials, renewable energy and human ingenuity. Elkem helps its customers create and improve essential innovations like electric mobility, digital communications, health and personal care as well as smarter and more sustainable cities. With a strong track record since 1904, its global team of more than 6,800 people has a joint commitment to stakeholders: Delivering your potential. In 2020, Elkem was rated among the world's top 5% on climate and achieved an operating income of NOK 24.7 billion. Elkem is listed on the Oslo Stock Exchange (ticker: ELK). www.elkem.com 

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SOURCE Elkem

FAQ

What recent investment has Elkem made at its Rana facility?

Elkem has invested NOK 140 million to enhance its Rana facility, focusing on the use of biocarbon.

What is Elkem's target for renewable biogenic emissions by 2030?

Elkem aims to increase its renewable biogenic emissions share to 40% by 2030.

How much funding is Elkem receiving from the NOx fund for the Rana project?

Elkem is receiving NOK 70 million in grants from the NOx fund for the Rana project.

What emissions reduction is expected from the new infrastructure at Elkem Rana?

The new infrastructure is expected to reduce NOx emissions equivalent to removing 20,000 diesel cars from the road.

How has Elkem been recognized for its sustainability efforts?

Elkem has received a Gold rating from EcoVadis and an A-rating from CDP for its sustainability performance.