Statkraft and Södra to build advanced biofuel pilot plant in Norway

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Statkraft and Södra to build advanced biofuel pilot plant in Norway

Statkraft and Södra have announced that they are going to build a biofuel plant in Norway, through their joint venture Silva Green Fuel AS (Statkraft 51%, Södra 49%). The plant will produce advanced (second generation) biofuel from forest feedstock. The plant will be located in Tofte in the Norwegian municipality of Hurum. Expected investment costs are NOK500 million (US$ 59.53 million).

The Danish-Canadian company Steeper Energy will deliver the technology. Construction will start in February next year and completion is scheduled for 2019. Enova SF, a wholly-owned entity of the Norwegian Ministry of Petroleum and Energy, will finance around 25%.

The purpose of the plant is to test technology for continuous production of advanced (second generation) biofuel that may directly replace current fossil fuels, as well as testing various types of raw materials. Initially, the plant will use feedstock from the forestry industry, but all biodegradable material may potentially be used.

Södra and Statkraft formed the joint venture company Silva Green Fuel AS in 2015 to establish future commercial production of advanced biofuel based on forest raw materials. The capacity of a full-scale production line will be between 100 and 150 million litres of biofuel each year. Initially, the product is intended for heavy road transport. However, the aim is to qualify the biofuel for use in the aviation industry.

The market potential is considerable. If ten production lines were built in Norway and Sweden, they could produce up to 1.5 billion litres annually. This corresponds to 13 per cent of the fuel used for road transport in these markets.

President and CEO Christian Rynning-Tønnesen, said:

"Advanced biofuels will be important for the transition from fossil to renewable energy consumption in the transport sector. As Europe's largest supplier of renewable energy, Statkraft is championing an industry development that will contribute to the green shift."

List of country news

Country news

  • November 03, 2017

    NIB financing helps NTE develop three hydropower projects in Norway

    Nord-Tronderlag Elektrisitetsverk Holding (NTE) has obtained a 15-year NOK 340 million (US$42.6 million) loan from the Nordic Investment Bank (NIB) to co-finance three hydropower projects in Norway.

    Read more
  • November 02, 2017

    Scatec Solar places NOK-750m green bond

    Scatec Solar ASA has successfully completed a NOK750 million (US$92 million) senior unsecured green bond issue with maturity in November 2021. 

    Read more
  • July 20, 2017

    Falck aquires majority stake in 70 MW of Norwegian wind projects

    Falck Renewables S.p.A. announced today that it has entered into an agreement with Svelgen Kraft Holding AS, a Norwegian power generation company, to acquire a majority participation into Vestavind Kraft AS, a company holding two wind power consented projects in Norway – Hennøy and Okla with capacity of approximately 70MW.

    Read more
  • June 07, 2017

    EIB completes financing for 1.4-GW Nordlink Subsea Interconnector project

    The European Investment Bank (EIB) has signed a €300 million (US$338 million) loan agreement with Norwegian transmission system operator (TSO) Statnett for the completion of the NordLink Subsea Interconnector project between Germany and Norway.

    Read more
  • May 25, 2017

    Luxcara expands its wind portfolio in Norway by 263 MW

    LUXCARA, the German renewable energy asset manager, has acquired a sizeable portfolio of wind turbines in southern Norway. The wind farms are located in the Bjerkreim region and will provide a total capacity of 262.8 MW.

    Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.