Elkem

Environmental & Social Information • Mar 18, 2024

Elkem and Ferroglobe to study CCS in a common hub in Rana

Elkem and Ferroglobe to study CCS in a common hub in Rana

Enova has granted Elkem and Ferroglobe a grant of 17 million NOK, for a pre

-study to continue the development of a joint carbon capture and storage (CCS)

project in Rana, Norway. The project, if finally realized, will capture 95% of

CO2 from the two plants, a total of 520.000 MT, for permanent storage, as well

as recover all excess energy from both plants.

"We are pleased to receive this grant from Enova, which will enable us to

continue our important work towards reducing our carbon footprint. CCS is

essential to reach net zero by 2050, and with this pre-study we will continue

developing the strategy and maturing the concept for capturing and storing the

CO2 from our plants. Funding, such as from Enova, is vital to make this project

a reality," said Helge Aasen, CEO of Elkem.

Elkem also plans to increase the use of biocarbon as a reductant within 2031,

and some of the captured CO2 from Rana will be biogenic. This means that there

is potential for negative emissions.

"Support schemes which make CCS viable in a competitive global industry is

necessary if we are to reach net zero. Credits for carbon removal is also among

the possibilities, and we are glad the Norwegian government is looking into

different potential financing schemes for carbon removal," said Helge Aasen.

The objective of the pre-study is to establish technical solutions for a carbon

capture, liquefaction, temporary storage and off-loading system at port, and

energy recovery systems, integrated to the two smelting plants. The technical

solutions and documentation will be detailed to enable capex and opex estimates

and preparing to further mature the projects.

"We are pleased to support Elkem's work on the development of this exciting

carbon capture project. Carbon capture technology will play a crucial role in

the transition to a low-emission society, and this project is an important step

in the right direction," says CEO of Enova, Nils Kristian Nakstad.

The total CO2 emissions from the two plants will be about 520,000 MT CO2/year,

and the project is planning for a capture rate of about 95%. This capture level

was achieved in Ekem's pilot project, which was completed in 2023. Part of the

CO2 will be biogenic, and total energy recovered is between 900-1000 GWh,

sufficient for carbon capture and domestic heat system in Mo i Rana, with excess

energy delivered to the grid as electrical power.

The overall budget for the pre-study is 33.4 MNOK, and the project will be

executed during 2024, with the final reporting during Q1/2025.

For further information, please contact:

Odd-Geir Lyngstad

VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.com

Maria Ekornes Myhre

Acting VP Corporate Communications and Public Affairs

Tel: +47 994 12 707

Email: maria.ekornes.myhre@elkem.com

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