All agreed loans

Norway. Elkem AS

Date of loan: 15 Oct 2015
Country: Norway
Customer: Elkem AS
Amount in NOK: NOK 373.7 million
Amount in EUR: EUR 41 million
Maturity: 8 years
NACE sector / loan type: Manufacturing
Business area: Industries and services

Environmental effect

Financing from NIB Environmental Bond proceeds

Share of financing: 47%
Amount disbursed: EUR 19 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

The loan finances the rebuilding of three electric arc furnaces in two of Elkem’s silicon plants, as well as R&D costs related to the company’s foundries, silicon production and carbon business for the period 2015–2018.

Two furnaces at the Salten plant in Straumen, northern Norway, and a furnace at the Bremanger plant in Svelgen, western Norway, will undergo technical improvements that are expected to reduce the emission of nitrogen oxides into the air by 40%.

Elkem’s R&D programme aims to develop more sustainable technologies and solutions. This includes for instance a bio-based carbon electrode paste to replace the fossil-based variant used in smelting processes.

Elkem is a global leader in the production of silicon-based advanced materials. The company has 21 production sites and sales offices in about 50 countries worldwide. Elkem is headquartered in Oslo.

Fulfilment of NIB's mandate

The R&D programme aims to improve the overall efficiency of Elkem’s silicon production and carbon business, and to raise the quality of end-products. In addition, one furnace at Salten has been modified to increase the purity levels in the silicon production process to 99% from 96%.

The R&D programme contains the adaption of new technology to site-specific boilers, steam turbines and pyrolysis at Elkem. Further, it is part of the reconstruction plan for the furnaces to prepare the systems for installation of new boiler and energy recovery systems. These measures are expected to reduce the company’s overall environmental impact.

Sustainability summary

The key environmental issue linked to Elkem’s production processes is nitrogen oxide emission. The technical improvements are expected to reduce the emission of nitrogen oxide by 40 per cent, which will improve the ambient air quality. R&D will focus on energy recovery solutions and technologies that fulfill CO2 regulations.

Press release

NIB finansierer forbedringsprogram for silisiumsproduksjon i Norge