“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. 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”, says Leif Brodén, President and CEO of Södra.
“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”, says Jørgen Kildahl, Executive VP at Statkraft.
Wind power
Statkraft will become a major partner of Södra through the establishment of a new jointly owned business for the long-term development and expansion of wind energy on Södra’s properties. The investments are to be made in Södra’s existing wind power company, Södra Vindkraft AB, in which Statkraft is acquiring a 90% holding. Overall, this comprises a project portfolio with a potential of some 300 wind power installations, corresponding to an annual production of 1.6 TWh, with the option of further expansion. The project timing is in a variety of different phases in terms of when specific project plans are to be implemented. Completion of the entire portfolio is a multi-year process which is dependent on licensing issues.
The option for Södra’s members, in conjunction with Södra Vindkraft, to develop new wind power projects on their own properties is reinforced as a result of increased ambitions concerning project volumes. The same is true of the potential for Södra members to invest directly in wind farms.
District heating
An agreement of intent has been signed with the aim of constructing one of Western Sweden’s largest infrastructure projects in the shape of the country’s longest waste heat pipe from Väröbacka to Kungsbacka. Södra Cell’s plant at Värö will supply energy in the form of waste heat via a district heating conduit to Statkraft’s district heating grid at Kungsbacka. From an environmental perspective, this is clearly a sound way to generate energy for a district heating grid. It makes use of energy that would otherwise be lost and thereby saves on both consumption of limited resources and emissions. The construction is estimated to take two years and will create significant opportunities for reinforcing Statkraft’s position in the district heating market and will further strengthen Södra Cell’s competitiveness. Initially, the project will involve Värö supplying the equivalent of 135 GWh per year of power.
Electricity supplies
A decision in principle has also been taken concerning electricity supplies, energy servicing and load balancing from Statkraft to all of Södra’s works in Norway, i.e. the paper pulp companies of Södra Cell Tofte AS in Tofte and Södra Cell Folla AS at Follafoss and all of the Gapro wood-products units in Norway. Södra’s staff in Norway also have the opportunity to purchase electricity from Statkraft at the going market rate. In total, the agreement between Södra and Statkraft comprises possible investments of more than SEK 10 billion (Euro 1 billion), and is expected to be definitively signed in the autumn of 2009.
Statkraft and Duke delighted with consent for Berry Burn Wind Farm
Catamount Energy Limited (CEL), a partnership between Statkraft and Duke Energy has received consent from the Scottish Government to build Berry Burn wind farm. The wind farm consists of 29 wind turbines with a maximum installed capacity of 78.3 megawatts and will be located on the slopes of Carn Kitty and Carn Ghiubhais, approximately 12 km south of Forres, in the Moray Council area.
The project has been developed by Force 9 Energy in partnership with Catamount Energy Limited (CEL), who will be the owner of Berry Burn Wind Farm. Norwegian Statkraft, Europe’s largest renewable energy generator and the American Duke Energy Corporation each own half of CEL. The companies are working together on several additional wind power projects and have applied for consent for two other wind farms on the UK mainland. A third wind farm that was developed as part of the partnership, Blaengwen wind farm in Wales, is now fully owned by Statkraft and is currently under construction.
“This represents a significant milestone in our development team’s efforts to bring additional clean, renewable energy to Scotland,” says Bruce Peacock, vice president of wind energy for Duke Energy.
“We are extremely pleased with the Scottish Government’s decision,” says Managing Director Eivind Torblaa of Statkraft UK Ltd. “This is our second consent in Scotland and we are excited about the opportunities we see in the wind energy sector here, as we look forward to investing in many more renewable energy schemes in Scotland. The project is very promising and we are looking forward to starting the construction in due course.”
Duke Energy, one of the largest electric power companies in the United States, supplies and delivers electricity to approximately 4 million U.S. customers in its regulated jurisdictions. The company specializes in developing innovative and environmentally sound generation solutions using a variety of fuels, including wind and other renewable energy sources. More information about Duke Energy is available on the Internet at: www.duke-energy.com.
Statkraft is Europe’s largest renewable energy company. The Group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European power exchanges. Statkraft also develops marine energy, osmotic power solar power, and other innovative energy solutions. In 2008 Statkraft posted gross operating revenues of EUR 3.1 billion. The group employs 3,000 staff in more than 20 countries.
Force 9 Energy was formed in 2002 in response to government policy that wished to see a larger proportion of the country’s energy needs met from renewable sources. The management team has been involved in generation projects since 1991 and wind power specifically since 1996 and seeks to develop locally aware, environmentally responsive projects.
