04/02/2022 – Energy / Elkem / Recovery Plant / Norway / Salten
Elkem takes 100% ownership of Salten energy recovery plant
Elkem has secured 100-per-cent ownership of the Elkem Salten energy recovery plant in northern Norway, after acquiring the remaining 50-per-cent stake from Kvitebjørn Energi.
The energy recovery plant – located in Straumen in the municipality of Sørfold, 100km north of the Arctic Circle – recovers a substantial amount of the electrical energy used at the silicon production site. The acquisition provides increased strategic flexibility to Elkem – one of the world's leading providers of advanced material solutions.
Recovering enough energy to power 15,000 Norwegian households
In November 2021, Prime Minister Jonas Gahr Støre opened the new energy recovery plant at Elkem Salten in northern Norway.
The energy recovery plant is closely integrated with the silicon production process at Elkem Salten, utilising the excess heat from the silicon furnaces to produce electrical power. The plant recovers 28 per cent of the electrical energy used at Elkem Salten – equal to the power consumption of about 15,000 Norwegian households.
The energy recovery plant was built in partnership between Elkem and Kvitebjørn Energi, each holding a 50-per-cent stake. Total investment 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-per-cent stake confidential.
Elkem aims to be “one of the winners in the green transition”
“Elkem aims to be part of the solution to combat climate change – and to be one of the winners in the green transition,” asserted Elkem’s CEO, Helge Aasen. “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,” he advised.
“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,” the CEO continued. “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.”
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