Norway’s Statkraft to invest up to $1.4 bln with Södra

The Swedish forestry and timber product company Södra and the Norwegian energy company Statkraft have signed an agreement of intent on renewable energy valued at up to SEK 10 billion (Euro 1 billion). The agreement initiates a range of investment projects and cooperative agreements in the energy sector.

“This is a partnership which will allow us to proceed even more quickly with the development of the renewable energy solutions that consumers are calling for. It covers the expansion of wind power activities and supplies of district heating, biofuels and electricity. Through a wide-ranging collaboration with Europe’s largest producer of sustainably generated power, Södra gains a partner who has the same ambitions as we have,” says Leif Brodén, President and CEO of Södra.

“The agreement with Södra is a strategic one for Statkraft because it allows us to develop our activities in a number of areas in cooperation with a strong industrial company.  Södra has been focusing for many years on eco-friendly energy and has resources and expertise in this area which complement our own. Through the cooperation, Statkraft will also be reinforcing its position as Sweden’s leading provider of renewable energy,” says Jørgen Kildahl, Executive VP at Statkraft.

Statkraft will become a major partner of Södra through the establishment of a new jointly owned business for the long-term development and expansion of wind power on Södra’s properties. An agreement of intent has been signed with the aim of constructing one of Western Sweden’s largest infrastructure projects in the shape of the country’s longest waste heat pipe from Väröbacka to Kungsbacka. At the same time, the partners have also signed an agreement for the supply of biofuel from Södra to Statkraft’s district heating plants in Sweden. A decision in principle has also been taken concerning electricity supplies, energy servicing and load balancing from Statkraft to all of Södra’s works in Norway.

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Issued by:  Norway.com

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Issue date: August 27, 2009

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