Norsk Trepellets, a wood pellet manufacturer located at Brumunddal north of Oslo, has become a wholly-owned subsidiary of Statoil Norge.
Norsk Trepellets is to invest NOK 9.5 million to expand the plant, doubling its capacity to an annual output of 16-20,000 tonnes from 2004. The expansion includes a new raw materials reception facility, pellet press and silo for finished products.
The investment will allow the company to accept a more diverse range of raw materials, which are currently based on waste products from a parquet flooring plant in Brumunddal.
‘Wood pellets represent processed biological energy with a high calorific value, and are neutral in terms of carbon dioxide. We expect demand for this product to increase,’ said Geir Gransbraten, head of energy solutions in Statoil and a director of Norsk Trepellets.
So far, customers for wood pellets in Norway have largely been big central heating users such as schools, hospitals and housing co-operatives. However, the private home market is expected to grow significantly over the next few years.
With the expansion of the plant, Norsk Trepellets also plans to start exporting pellets to Denmark and Sweden.