2017-04-03

Norske Skog has been granted NOK 15.7 million over four years from the Research Council of Norway to further develop the production of biogas fuel at the Norske Skog Saugbrugs in Halden. The project, called 'Pyro Gas', has a total budget of NOK 31.5 million. The project fits well into Saugbrugs' strategy of developing new fibre- and energy products in synergy with the existing paper production.

The project will develop new technologies for combined production of biogas fuel and bio-based reducing agent for the alloy industry based on biowaste from the paper production. The project is implemented in cooperation with the Paper and Fibre Research Institute in Trondheim (PFI), the University College of South-Eastern Norway in Porsgrunn (HSN), Cambi and Eramet Norway AS.

- Norske Skog intends to be a driving force in the development of future biofuel. The paper and pulp industry in Norway has made a roadmap for zero emissions and a doubling in the value creation by 2050, this project is therefore a good contributor, says Sven Ombudstvedt, CEO of the Norske Skog and chairman of Norske Skog Saugbrugs. - Norske Skog Saugbrugs's strategy is to exploit raw materials in our entire value chain to further develop existing products and develop new products. The Pyro Gas project lifts us into an entire new dimension, namely to provide biocarbon to the alloy industry. The project is unique in the sense that we utilize Norwegian technology across traditionally independent industries. The pyro-gas project will also be an important step to reduce the CO2-footprint of both the alloy industry and the transport sector, and thus be in line with the Government's stated objectives, says Kjell Arve Kure, managing director of Norske Skog Saugbrugs.

Research Council ENERGIX program received in this round 67 applications in category innovation projects for businesses, of which 29 projects were supported. Norske Skog Saugbrugs also participates in the National Center for sustainable production of biofuels and bioenergy, Bio4Fuels, which now starts up. Both Norske Skog, Cambi, PFI and the University College of South-Eastern Norway are key players in the center.

PFI is an internationally recognized research institute in processes and products based on forest-based biomass, and has strong expertise in pyrolysis technology. University College of South-East Norway has strong expertise in anaerobic processes for biogas production. Cambi is a leading technology for the conversion of sludge to renewable energy and high quality biomass. Eramet Norway AS is part of Eramet Group, a world leading producer of alloying elements, with production facilities in Kvinesdal, Porsgrunn and Sauda.

Oslo, 3 April 2017

Norske Skog Communications and Public Affairs For further information:

Norske Skog media: Vice President Corporate Communication Carsten Dybevig Mob: +47 917 63 117 www.norskeskog.com twitter: @Norske_Skog

Norske Skog financial markets: Vice President Investor Relations Tom Rogn Mob: +47 948 55 659

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