Södra and Statkraft collaborate on renewable energy

Swedish forestry and timber product company Södra and Norwegian energy company Statkraft have signed a SEK 10 billion (~€1bn) agreement of intent on renewable energy.

“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,” says Leif Brodén, President and CEO of Södra.

The renewable energy, district heating and electricity agreement is expected to finalised in the fourth quarter of 2009.

Wind power

One of the renewable energy areas covered by the agreement is wind power. The two companies will establish a jointly-owned business for long-term development and expansion of wind power on Södra’s properties. The investments will be made in Södra’s existing wind power company, Södra Vindkraft AB, in which Statkraft is acquiring a 90% holding.

The wind power project portfolio has a potential of some 300 wind power installations totalling an annual production of 1.6 TWh with the option of further expansion.

District heating

Statkraft and Södra will also construct one of Sweden’s longest waste heat pipe from Väröbacka to Kungsbacka. Södra Cell’s plant at Värö will supply waste heat via a district heating conduit to Statkraft’s grid at Kungsbacka.

The district heating project is estimated to be built in two years and Värö will supply the equivalent of 135 GWh per year.


Under the agreement, Södra will supply biofuel to the Statkraft district heating plants in Sweden.

Electricity supplies

A decision has also been made in principle concerning electricity supplies, servicing and load balancing from Statkraft to all of Södra’s works in Norway.

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Bioenergy  •  Energy infrastructure  •  Green building  •  Policy, investment and markets  •  Wind power