Södra, Statkraft to Create Joint Biofuel Company
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Statkraft, Oslo, Norway, and Södra, Växjö, Sweden, have agreed to create a biofuels production company based on forest raw material. The agreement means that Statkraft will acquire Södra Cell Tofte AS, which owns the industrial site of the former Tofte pulp plant in Hurum, Norway.
The two companies note that biofuels play an important part in the drive to achieve national and international targets for reducing climate emissions from the transportation sector. It is predicted, they add, that authorities will provide incentives to stimulate an increased mix of sustainable biofuel in oil-based fuels.
"Statkraft views biofuel as an interesting area in renewable energy. I believe that the collaboration with Södra will be a solid basis for development of the project," said Statkraft CEO, Christian Rynning-Tønnesen.
"Södra is monitoring with great interest the technology developments and the business opportunities presented by the use of forest raw materials for industrial production of climate-neutral fuels. We have also enjoyed good collaboration with Statkraft in the past and look forward to joining the two companies' expertise and experience in this project," said Södra CEO Lars Idermark.
The letter of intent signed by both companies this week means that Statkraft will take over all of the shares in Södra Cell Tofte AS and that Södra and Statkraft will form a new biofuel company in which Södra will own a 49% share and Statkraft a 51% share.
The Tofte industrial site is favorably situated for a future venture into the area of biofuel. The location has an established infrastructure that can handle large volumes of wood, and it is located centrally in Eastern Norway, with a good deep-water port.
Statkraft is Europe's largest producer of renewable energy and a leading power company in Norway. The group owns, produces, and develops hydroelectric power, wind power, gas power, and district heating. Statkraft is a major player in the European energy trading market and has 3,600 employees in more than 20 countries.
Södra has extensive forestry operations and is a leading producer of paper pulp, sawn timber, and bioenergy. The Group is owned by 50,000 forest owners in southern Sweden, has 3,500 employees, and revenue of SEK 17 billion.
