Hafslund has at the 22nd of December together with Møre- og Romsdal Biobrensel AS formed a mutual company (BioWood Norway AS) with the aim to establish a factory for production of wooden pellets. BioWood Noway AS has entered an agreement to acquire Umoe-Sterkoders industrial area at Averøy outside Kristiansund. The factory is expected to have an annual capacity of 450 000 tonnes. Final investment decision is expected to take place in 1st quarter 2007 when subsidy from Enova (www.enova.no) is clarified and other central conditions are in place.

 

Hafslund ASA

 

Oslo, 27 December 2006

 

For further information:

 

Group Senior Vice President, Heat and Infrastructure, Per Kristian Olsen, tel. +47 91 82 77 09

Vice President Investor Relations, Heidi Ulmo, tel. +47 90 91 93 25.