The agreement also means that Statkraft will acquire the company Södra Cell Tofte AS, which includes the industrial site of the former Tofte pulp plant in Hurum, Norway. The LOI 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.

“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,” commented Södra’s CEO Lars Idermark.

The Tofte industrial site is favourably 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.