Oslo, 5 November 2021 
 
Carbon Transition is pleased to announce that its portfolio company, Arbaflame
AS, has entered into a letter of intent with the Ministry of Energy of Romania.
Under the letter of intent, Arbaflame and the Ministry of Energy of Romania will
cooperate on a coal replacement verification test program through the first half
of 2022. Subject to a successful test program, the Ministry of Energy of Romania
will grant Arbaflame a 10-year offtake agreement for 100,000 tonnes per year of
Arbacore wood pellets to be produced at a new Arbaflame production facility to
be built in Romania. 

The agreement provides for further capacity expansion of 2 million tonnes per
year (representing 20 ArbaNEXT plants), sufficient to replace approximately 10%
of Romania's coal consumption. Additionally, the Ministry of Energy of Romania
will work with Arbaflame's research and development team to utilize Romania's
biomass to fully phase out the country's coal production of approximately 20
million tonnes per year (representing in excess of 200 ArbaNEXT plants).

"Carbon Transition is very pleased that Arbaflame and the Ministry of Energy of
Romania have entered into such a substantial letter of intent, which targets to
fully replace Romania's coal consumption. We are very excited to see that
Arbaflame is getting acceptance for its technology from a large European Union
country, and which could have a transformative impact on Arbaflame's business,
the Romanian power production sector, and as a consequence enable large
reductions of carbon emissions," says Gisle Grønlie, Chairman of the Board of
Carbon Transition ASA.

On 7 July 2021, Carbon Transition announced that it had made a NOK 30 million
investment in a convertible loan in Arbaflame AS, a company with revolutionizing
technology which significantly reduces Co2 emissions in energy production from
coal-fired power plants. For further information, see the stock market
announcement: https://newsweb.oslobors.no/message/537646

For further information about Arbaflame's letter of intent with Ministry of
Energy of Romania, please see the attached press release.

For further information about Carbon Transition's investment in Arbaflame,
please contact:

Gisle Grønlie, Chairman of the Board
gisle.gronlie@magnoraasa.com
+47 917 51 194

Nils Haugestad, CFO
nils.haugestad@carbn.no
+47 977 04 439


About Carbon Transition ASA 
Carbon Transition ASA ("CARBN") is an investment company listed on Euronext
Expand. CARBN has a strategy to invest in companies and technologies which
contribute to significant reductions of carbon emissions. The company may also
invest more broadly in the "energy transition" space. CARBN has a legacy seismic
business operating under the name Axxis Geo Solutions, with both an ocean-bottom
seismic contract business and a multi-client data library.
More information on www.axxisgeo.com