Hydropower, Wind Power

SCA and Statkraft Create Major Wind Power Venture

SCA and Statkraft are to form a jointly owned company for a major investment in wind power in northern Sweden. The plans involve production of 2,800 gigawatt-hours (GWh) of wind power electricity per year in seven wind farms on forest land in Vasternorrland and Jamtland, which will amount to an investment of SEK 16 billion (U.S. $2.3 billion).

Statkraft will provide financing and SCA will provide the land for the wind power farms.

“We have made an inventory of our two and a half million hectares of forest land in northern Sweden, in order to find locations with favourable conditions for wind power production,” says Kenneth Eriksson, President of SCA Forest Products.

“Statkraft’s goal is to increase production of renewable energy. The agreement with SCA is therefore a major step in the right direction and entirely in line with our strategy,” says Jørgen Kildahl, CEO of Statkraft.

In related news, SCA and Statkraft also want to examine the feasibility of a careful and responsible extension of hydropower in four waterways where SCA owns fall rights. These waterways are Ammerån in Jämtland, Röån, a tributary of the Ångerman river, Edsoxforsen in Hårkan and the Byske river.

There has in practice been a ban on expansion of hydropower for over a quarter of a century,” says Kenneth Eriksson. “We have the greatest respect for the ecological values in an unexploited waterway but we still feel that we must be able to examine whether using modern technology we can exploit hydropower with a reasonable balance between ecological values and economy. Swedish industry needs more energy production and the world needs energy production that does not cause increased emissions of greenhouse gases.

The two companies that SCA and Statkraft are now forming together for the wind power investment and the feasibility study for new hydropower production, will be located in the county of Västernorrland.