Elkem awarded 1.3 million extra EU ETS allowances for 2021–2025

Allocation awarded

Elkem ASA has received 1.3 million additional free emission allowances under the EU Emissions Trading System (EU ETS) for the period 2021–2025 from the Norwegian Environment Agency.

Background

The award follows the Norwegian Ministry of Climate and Environment's July 2025 conclusion that Norwegian silicon, ferrosilicon and manganese producers were unequally treated compared to EU producers in how EU ETS rules were implemented for 2021–2025. For that period certain Norwegian installations, including Elkem's silicon plants, received free allowances corresponding to approximately 72% of historical emissions while comparable installations in EU member states received approximately 94%.

Outlook for 2026–2030

Elkem's plants in Bjølvefossen, Bremanger, Rana, Salten and Thamshavn have been informed by the Norwegian Environment Agency that they will receive allowances in line with the allocation received by comparable industrial producers in the EU for 2026–2030.

Company response and context

Luiz Simão, SVP of Elkem Silicon, welcomed the decision: "We welcome the decision by the Norwegian authorities to apply the same interpretation of the EU ETS rules as other EU countries." He added that fair allocation is crucial for competitiveness and preserving industrial value chains. Simão also said: "The EU ETS is not only an important policy tool for Europe's ability to deliver on climate neutrality. It is also important for strengthening Europe's industrial competitiveness… Competitive and predictable framework conditions are the foundational pillars required to sustain and grow a resilient, "Made in Europe" industrial base."