BioWood Norway AS has on 9th May entered into a contract with Swedish Exergy AB to deliver central components in connection with the building of a pellets factory at Averøy outside Kristiansund. The contract is the largest individual contract within the project and constitutes around NOK 200 mill.

 

BioWood Norway is owned by Hafslund and Møre- og Romsdal Biobrensel AS. In connection with the Letter of Intent Hafslund is increasing its ownership from 54% to 79% through a share issue to the value of NOK 107. BioWood Norway has been promised support from Enova to the value of NOK 97 mill. The pellets factory will stand completed the summer of 2010 and is expected to have a production capacity of 450,000 tonnes of pellets.

 

For further information please contact:

 

CFO, Gunnar Gjørtz, tel: +47 922 17 200

Group Senior Vice President, Heat & Infrastructure, Per Kristian Olsen, tel: +47 918 27 709

Director of Business Development, Svein Ivar Haugom, tel: +47 992 71 719

 

Hafslund ASA

Oslo 9th May 2008