Södra and Statkraft to form new biofuel company

Södra and Statkraft have signed a letter of intent to create a company that will produce biofuels using forest raw material.

The agreement means that Statkraft, a renewable energy producer, will acquire Södra Cell Tofte, which owns the industrial site of the former Tofte pulp plant in Hurum, Norway.

'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,' says Södra's CEO Lars Idermark.

Statkraft will now take over all of Södra Cell Tofte's shares and Södra and Statkraft will form a new biofuel company in which Södra, a group specialising in forestry operations, will own a 49% share and Statkraft a 51% share.