All agreed loans

Norway. Orkla ASA

Date of loan: 24 Nov 2008
Country: Norway
Customer: Orkla ASA
Amount in EUR: EUR 145 million
Maturity: 12 years
NACE sector / loan type: Manufacture of basic metals
Business area: Industries and services

Environmental effect

This loan contributes to climate change mitigation: 25%

Project

The 12-year-maturity loan totalling EUR 145 million has been provided Orkla ASA for the financing of a high-grade silicon metal factory for the solar cell industry being built in Kristiansand in southern Norway. The project is being carried out by Elkem Solar AS, a subsidiary of Orkla, a large Norwegian company active in various sectors.

Elkem is one of the world's leading producers of silicon, delivering special products to the chemicals, electronics and aluminium industries worldwide. Elkem has spent more than 25 years developing a cost-effective metallurgical process for manufacturing high-purity silicon for the solar cell industry. The new production process, now being industrialised,consumes significantly less energy than traditional methods, lowering production costs as well as air and water emissions. The new silicon has been verified to fulfil the quality requirements of the solar industry.

When fully operational during the course of 2009, the new plant will have a production capacity of 6,000 tonnes per year. All of the production capacity until 2012, and app. 50% of the capacity between 2012 and 2018 has already been sold.

Sustainability summary

The main environmental issues arising from the new factory involve emissions to air and discharges to water, which will nonetheless be lower due to the new technique being employed. In addition, an internal wastewater treatment plant will neutralise and effectively remove pollutants from the process water before it is discharged.