Statkraft Looks to Billion-Euro Deal for Swedish Wind Power

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Norwegian energy company Statkraft AS (Oslo) hopes to greatly expand the company's wind energy portfolio by entering into a wide-ranging renewable energy deal with Swedish forestry and timber company Södra (Vaxjo).

The deal, valued at about 1 billion euros ($1.45 billion), will see Statkraft take a 90% share in Södra's fledgling wind power operation, Södra Vindkraft AB, which opens up the possibility of developing a potential portfolio of 300 installations on Södra property. Sodra, which is owned by 52,000 forestry owners who control vast amounts of forestry land in southern Sweden, is the country's largest producer of green energy.

The wind project portfolio has the potential to generate 1.6 terawatt-hours annually. The first phase is already under way, with Sodra having announced plans to erect 23 turbines near pulp mills. These turbines will be capable of generating enough power for about 2,000 homes. Statkraft has no windfarms in Sweden and only three in Norway, so this agreement with Södra offers a huge opportunity for the company to become a leading player in wind power in the longer term. Most of Statkraft's renewable power comes from an impressive portfolio of hydropower facilities, which includes facilities in Norway (149), Sweden (58), Germany (11), Finland (4) and the United Kingdom (1).

"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," said Leif Broden, President and CEO of Södra. "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."

Jørgen Kildahl, Executive Vice President at Statkraft, added: "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."

In addition to wind power, the companies have also agreed to work on district heating projects and biofuels.

Both companies have announced plans to construct the country's longest waste-heat pipe from Varobacka to Kungsbacka. Energy will be supplied from Södra Cell's plant in Varo in the form of waste heat via a district heating conduit to Statkraft's district heating grid in Kungsbacka. The pipeline will take about two years to complete, and the Varo plant will supply the equivalent of 135 gigawatt-hours of power per year.

In addition, Södra will supply biofuel to Statkraft's district heating plants in Sweden.

Södra employs 3,700 employees and has an annual turnover of about 1.7 billion euros.

IIR's Renewable Energy Database provides extensive coverage on the Wind Energy, Geothermal, Hydroelectric, Landfill Gas-to-Energy and Utility-Scale Solar power plants throughout North America, and is now expanding coverage across the world.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.