Borregaard - Environmental & Social Information 2016

Borregaard: Investment project to upgrade the bioethanol plant and to increase the use of bioenergy

Borregaard has decided to invest NOK 63 million in a project which includes an

upgrade of the bioethanol plant and a facility to capture and store biogas. The

project has been awarded a grant of NOK 18.9 million from Enova, a Norwegian

government agency which promotes environmentally friendly restructuring of

energy end-use, renewable energy production and new energy and climate

technology.

The bioethanol plant upgrade includes installing modern production technology

which will reduce significantly the specific use of energy in the production

process. As a result of the rebuild, there will be sufficient capacity to

deliver the whole production as 100% water-free bioethanol. This market is

growing, mainly driven by increased demand for bioethanol in automotive fuel.

Borregaard is a significant producer of biogas from process residues, which is

used internally as an environmentally friendly source of energy. The new

installation will make it possible to capture and store a bigger part of the

available biogas, and thus increase the internal use.

The project work will start up during the second half of 2016. The bioethanol

rebuild will be completed in 2017, and the biogas installation will be finished

in 2018.

Sarpsborg, 9 September 2016

Contact

Jørn Syvertsen, Director Investor Relations, +47 958 36 335

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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