BioWood Norway AS has 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. 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.
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