Elkem

Related Party Transaction • Feb 1, 2022

Elkem takes 100% ownership of Salten energy recovery plant

Elkem takes 100% ownership of Salten energy recovery plant

Elkem has today secured 100% ownership of the Elkem Salten energy recovery

plant, after acquiring the remaining 50% stake from Kvitebjørn Energi. The

transaction is attractive to Elkem and provides increased strategic flexibility.

On 15 November, Prime Minister Jonas Gahr Støre opened the new energy recovery

plant at Elkem Salten in the northern part of Norway. The energy recovery plant

is closely integrated with the silicon production process at Elkem Salten,

utilizing the excess heat from the silicon furnaces to produce electrical power.

The plant recovers 28% of the electrical energy used at Elkem Salten, equal to

the power consumption of about 15,000 Norwegian households.

The energy recovery plant has been built in partnership between Elkem and

Kvitebjørn Energi, each holding a 50% stake. The total investment has amounted

to around NOK 1.2 billion, financed through a NOK 350 million grant from Enova,

significant external debt and some equity. The parties have agreed to keep the

purchase price for the 50% stake confidential.

"Elkem aims to be part of the solution to combat climate change - and to be one

of the winners in the green transition. The new energy recovery plant at Elkem

Salten, developed together with our partners in Kvitebjørn Energi and with

financial support from Enova, further strengthens our efforts to ensure

environmentally friendly silicon and ferrosilicon production with the lowest

possible emissions and lowest possible use of resources," says Elkem's CEO,

Helge Aasen.

"With today's acquisition, we position Elkem for financially attractive returns

and increased strategic flexibility, while at the same time delivering on our

climate roadmap. Elkem has now established a strong portfolio of energy recovery

plants across several of our locations. We believe that energy recovery will be

a key pillar in the green transition, and we see significant additional

potential for additional energy recovery in our industry with the right support

mechanisms," says Aasen.

For more information

Odd-Geir Lyngstad

VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.com

Fredrik Norman

VP Corporate Communications & Public Affairs

Tel: +47 918 66 567

Email: fredrik.norman@elkem.com

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