Biokraft As a Guide Into the New Circular Bioeconomy
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2019-2020 1 3 Profitable green industry 5 Chasing sustainability 7 Towards a greener world 12 Biokraft Skogn 16 Biokraft Skogn II and Skogn III 17 Innovation, research and development 21 Biokraft timeline 23 Biokraft official opening 25 Biokraft Skogn I official opening 29 The Biokraft board and CEO «The future is green energy, sustainability, renewable energy.» ARNOLD SCHWARZENEGGER 30 Owners 33 Financial performance 35 This is what we do at Biokraft 2 How do we achieve the action needed to successfully limit global warming to less than 1.5 degrees Celcius? At Biokraft, we PROFITABLE believe that such action is best left to private enterprise and our eternal quest for profitability. We believe that the eternal quest for green GREEN INDUSTRY profitability is the business opportunity of our time. Furthermore, we believe that if we and Biokraft started operations of our factory at many other private enterprises successfully Skogn in Trøndelag – the world's largest LBG address this great business opportunity, this will also limit the negative effects of global production facility – during summer 2018. Since warming and create the future our children late 2018, for 20 consecutive months, Biokraft ask for. has delivered positive monthly EBITDAs, every So far, 2020 has been an extraordinarily challenging year for the world economy due month. In our first quarter of 2020, Biokraft also to the Coronavirus pandemic. At Biokraft, delivered a positive net result for the quarter. we are now getting ready to commence our This is profitable green industry. next construction project – of the Skogn II LBG production facility. In doing so, we are executing on what we believe is a profitable growth opportunity. We are also contributing to industrial growth in Norway, important industrial growth at a time when it is most needed. In the past twelve months, we have continued to see very encouraging developments in the market for liquid biogas fuel. Several leading manufacturers of heavy trucks are providing their new long-range solutions for liquid biogas – equipment and renewable solutions that the leading logistics companies want. We have seen leading Norwegian logistics companies such as TINE and Litra start utilizing this new equipment, increasingly running their heavy trucks on 3 PROFITABLE GREEN INDUSTRY PROFITABLE liquid biogas. We have also seen another green industry will yield attractive returns. bioeconomy that is both profitable and journey. When we officially opened the important pioneer entering the stage. By producing renewable liquid biogas, we consistent with the sustainable development world's largest LBG factory at Skogn in Norwegian cruise operator Hurtigruten have are furthering Norway's proud tradition as a goals. When the Norwegian government September 2018, we had over 100 prominent announced that they will run ships on liquid leading energy supplier. launched their new strategy for bioeconomy, guests and the prime minister of Norway biogas by 2021. These developments are they chose Biokraft to host the launch. We attending. Our prime minister said in her all very encouraging, and they exemplifiy «In a world ever more populous, are proud of that, and such attention impels opening address: Biokraft takes Norway into the demand driven growth for liquid biogas us to further innovation, action and green the green transition. At Biokraft we are proud we need more renewable energy that we and energy analysts have expected investments. We are chasing the innovation of this. and predicted. and more sustainable food breakthroughs that will enable more I will be honest with you. Producing production.» production of better bio-fertilizers and more liquid biogas and providing it as fuel to heavy production of sustainable animal feed. In a «We unite investors need for trucks and ships feels good. It feels good New green industry must lead the world ever more populous, we need more attractive returns with our because I know we are making an important way towards a greener world. Successfully renewable energy production and more world's need for more renewable contribution to reducing greenhouse gas achieving such a transition will happen in sustainable food production. At Biokraft, we fuel and food.» emissions, and it feels good because I know interaction with politicians and authorities. do not only want to provide more renewable we are making money doing it. And there The political will to act by changing markets fuel, but we also see business opportunities is a bonus: I know that we are creating new and regulatory contexts in ways that makes related to more sustainable food production. We will continue to innovate. We will jobs, safe and green jobs, and that creating consumers more motivated to choose At Biokraft, innovation and industrial scale continue to make profitable investments more such jobs is important to safeguard our greener alternatives is necessary. Both carrot action are at the heart of what we are doing. in new, green industry. Biokraft is green, welfare for decades to come. and stick must be used, and investments We are entrepreneurs who put capital, talent, profitable and leading. We will continue to do We do not believe that profit-oriented in new green industry will only materialize and innovations to work at an industrial scale. what we have always done – we will continue industry and reduction of greenhouse gas if there are long term consistency and Norway must develop new, green our eternal quest for green profitability. We emissions need to be contradicting forces. predictability. The Norwegian government industry that will safeguard welfare long after deliver profitable green industry. On the contrary – the expertise, ability to has already implemented changes that the sun has set on traditional oil and gas innovate, drive and commitment found in encourage large scale production of industry. Biokraft is part of this new, green private sector businesses will be necessary renewable liquid biogas in Norway. A strong industry. Biokraft is the future. We unite Håvard Wollan CEO BIOKRAFT AS to save our planet. Biokraft brilliantly political will to act combined with fearless investors need for attractive returns with the Trondheim, June 2020 exemplifies that shareholders' demand for industrial green entrepreneurship is a world's need for more renewable fuel and returns can, and will, lead to industrial action forceful combination – a combination that sustainable food. that will give important contributions to can and will facilitate the necessary green I feel privileged to head Biokraft, and I reducing greenhouse gas emissions. transition that our planet needs. know that all my employees feel privileged At Biokraft, we are patient and persistent. At Biokraft, we are in the business of to work for Biokraft. In 2019, we celebrated We are pioneers. We act as commercial redesigning the value chains of yesterday that we have had ten good years in business. industrial entrepreneurs do. We are confident towards the value circles of tomorrow I was part of the team that founded Biokraft that our investments in state-of-the-art – facilitating a transition towards a circular eleven years ago. It has been a rewarding 4 CHASING SUSTAINABILITY As a Norwegian company Biokraft is, like Norway, committed to making a contribution towards the UN's 17 Sustainable Development Goals (SDGs). We believe that our contribution is particularly relevant and exemplified in relation to SDGs 7, 8, 9, 12, 13 and 15. Biokraft sees the 2030 agenda for sustainable development as a business opportunity. We innovate and execute on focused efforts in order to attempt redesigning the value chains of yesterday towards the value circles of tomorrow – facilitating transition towards a circular bioeconomy profitably and consistently with the SDGs. We take profitable industrial action – providing practical sustainable solutions. «Climate change is an urgent issue and we've got to act accordingly. Biogas is part of the solution and utilized as renewable fuel in The Norwegian Government presented its new strategy for the bioeconomy at Skogn, hosted heavy transportation on land and in maritime by Biokraft. The Minister of Oil and Energy Mr. Tord Lien and the Minister of Aquaculture and transportation makes a difference. It is important Fisheries Mr. Per Sandberg thanked Biokraft, here represented by CEO Mr. Håvard Wollan, for towards meeting the 2030 Paris Agreement.» the contribution towards developing the new bioindustry in Norway. BØRGE BRENDE, PRESIDENT WORLD ECONOMIC FORUM 5 Affordable and Industry, Climate action clean energy innovation and Biokraft makes a Biokraft makes a infrastructure contribution towards contribution towards Biokraft makes a taking urgent action to ensuring access to contribution towards combat climate change affordable, reliable, promoting inclusive and its impacts. Biokraft sustainable and modern energy by and sustainable industrialization and produces renewable energy, enabling producing renewable biogas of engine fuel fostering innovation. Among other, we see consumers to shift from fossile to renewable quality and sell this fuel at competitive us playing a role in applying the know-how alternatives immediately. prices. Among other, liquid biogas can and technology developed over decades be utilized as vehicle fuel in heavy in the Norwegian oil and gas industry – transportation and as fuel in ships. leveraging this know-how and technology in Life on Land the more sustainable context of renewable Biokraft makes a energy production.