Elkem

Environmental & Social Information • Nov 27, 2024

Elkem secures EUR 1.8 million EU grant to explore CO2-free silicon production

Elkem secures EUR 1.8 million EU grant to explore CO2-free silicon production

Kristiansand, Norway - November 27, 2024 - Elkem ASA has secured EUR 1.8 million

in funding from the European Union for the groundbreaking Elkem Sicalo® (Silicon

production with carbon looping) project, which aims to eliminate all CO2

emissions from silicon production.

Elkem, SINTEF and NORCE are completing the first pilot phase of Elkem Sicalo® at

Elkem's technology park in Kristiansand, Norway. The project entails capturing

the carbon emitted from the silicon furnace and reusing it as a reductant in the

silicon production process. The EU has now granted EUR 9.9 million in funding

for the Horizon Europe project MECALO, which builds on Elkem Sicalo®. MECALO

will develop the concept of carbon looping further for general metal production,

with demonstration of zero CO2 silicon and manganese alloys.

The manganese alloys producer Eramet, with its six smelters in Norway, France,

the United States and Gabon, is the other metallurgical company in the

consortium aiming to develop and use the technology from MECALO. If successful

and fully implemented in all European production of silicon and manganese,

MECALO could save 33 million tonnes of CO2 emissions per year in 2050.

"Our research into carbon looping has the potential to be a game changer for the

metal alloys industry to achieve net zero emissions. We are grateful to the EU

for supporting this groundbreaking project. Strong public-private partnerships

are essential for bridging resource gaps, spreading risk and leveraging

complementary competencies. Together, we are strengthening Europe's resilience

in the critical raw materials value chains," said Elkem CEO Helge Aasen.

Silicon is a raw material that is critical for the green and digital

transitions. Its application ranges from electric vehicles to solar cells,

batteries, smart phones and wind turbines. The production of silicon is a source

of greenhouse gas emissions, as the process requires carbon to reduce quartz

into silicon. Some metals, such as steel, can be produced with hydrogen as a

reductant. This is not possible for silicon, manganese and several other metals.

That's why pioneering projects such as MECALO are needed, to develop innovative

production methods without CO2 emissions.

The MECALO project will research and develop a new production method that

involves capturing carbon oxides from process off-gases, converting them to

solid carbon using low-carbon hydrogen, and reusing the recovered carbon as a

reduction material to produce critical metals and materials. While this method

is showing promising results, it also presents challenges that need to be

resolved, such as increased energy use.

The overall budget for MECALO is EUR 9.9 million (NOK 116 million), with Elkem's

budget and requested grant amounting to EUR 1.8 million (NOK 21 million).

Key highlights of the MECALO project:

· Innovative carbon capture and reuse:Capturing carbon oxides from off-gases

and converting them into solid carbon using hydrogen, which is then reused in

metal production

· Elimination of external carbon feedstock:The process aims to eliminate the

need for external carbon in carbothermic production

· Researching production of "turquoise hydrogen": A project partner will

research methane pyrolysis, whereby methane is cracked into hydrogen and solid

carbon, using only a fifth of the energy required for green hydrogen production

Elkem has been working on Elkem Sicalo® with SINTEF as its research partner

since 2021, with support from The Research Council of Norway from 2022-2024. The

research partners are now initiating the second phase of the project with

extensive pilot testing of various stages of the production process, with

support from Enova.

"Significantly reducing greenhouse gas emissions while enabling the production

of green products is the recipe for competitiveness in a low-emission society.

Thanks to an ambitious research agenda, we are now in a position to deliver a

huge impact on European industry," said Eli Aamot, Executive Vice President of

SINTEF Industry.

"Our ambition is to be the first producer to offer zero CO2 manganese alloys on

the way to decarbonizing the value chain of steel. Carbon looping is an

important lever for the long term, with a potential CO2-reduction of 90 per cent

compared with today's level. The MECALO project provides a pragmatic and

industry-oriented solution through collaborative work from top European

companies, and I look forward to seeing the results," said Bjørn Kolbjørnsen,

head of Eramet's Mn Alloys business unit.

Carbothermic reduction in metal production

· Definition: Carbothermic reduction involves the reduction of metal oxides

using carbon as the reducing agent. This process is typically conducted at high

temperatures in furnaces.

· Applications: Commonly used in the production of metals such as silicon and

manganese, which are crucial for various industries, including electronics and

renewable energy.

· Process: The carbon reacts with the metal oxide to produce the metal and

carbon monoxide (CO) or carbon dioxide (CO\2\).

· Environmental impact: Traditional carbothermic reduction processes produce

significant CO\2\ emissions. Innovative projects like MECALO aim to capture and

reuse the carbon, reducing the environmental footprint.

· MECALO Project: This project focuses on capturing carbon oxides from process

off-gases, converting them to solid carbon using low-carbon hydrogen, and

reusing the recovered carbon in metal production.

For further information, please contact:

Elkem:

Marianne Stigset

VP Corporate Communications & Public Affairs

Tel: +47 411 88 482

E-mail: marianne.stigset@elkem.com

SINTEF Industri:

Stein Mortensholm

Communications Director

Tel: +47 99 00 96 00

E-mail: stein.mortensholm@sintef.no

About Elkem

Elkem is one of the world's leading providers of advanced silicon-based

materials 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

7,400 people has a joint commitment to stakeholders: Delivering your potential.

In 2023, Elkem achieved an operating income of NOK 35.5 billion and CDP ratings

of A on Forests, and A- on Climate Change and Water Security. Elkem is listed on

the Oslo Stock Exchange (ticker: ELK), where the company is also included in the

ESG Index. www.elkem.com