Changing transportation modes, more energy efficient vehicles and biofuels all help to reduce greenhouse gas emissions in the transport sector. In the near term, increasing the quality and market share of biofuel is the most promising method of gradually reducing the negative climate effects of fossil fuels.
We maintain a strong focus on developing a sustainable biofuel business in terms of biomass origin, greenhouse gas emissions, biodiversity and social conditions and the effects on local economic development.
Our ambition is to become a significant supplier of biofuel, combining production and trading and becoming a leading marketer of biofuels in countries in which StatoilHydro sells automotive fuels.
We started selling biofuels in Sweden as early as 1999, and today we sell biofuels at stations in Sweden, Denmark, Norway, Latvia, Lithuania, Estonia and Poland.
Our total biofuel sales in 2007 reduced carbon emissions by 167,000 tonnes, a significant increase compared with 2006.
In August 2007, we acquired a 42.5 per cent stake in the Lithuanian bio-diesel plant Mestilla. This is our first investment in biofuel production. The Mestilla plant became operational in November 2007, with an annual capacity of 100,000 tonnes of bio-diesel. StatoilHydro will be responsible for marketing, sales and distribution. The production at Mestilla will supply biofuels to our extensive network of service stations in Scandinavia, the Baltic countries and Poland.
In September 2007, we entered into a long-term strategic collaboration with the Brazilian oil company Petrobras. The Memorandum of Understanding (MoU) with Petrobras offers new opportunities to develop international value chains in the field of biofuel, involving both production and trading.
We will explore the possibility of cooperating with Petrobras in the following three main areas:
- Brazilian ethanol production from sugar cane for international markets
- Technology development for next generation biofuels
- Industry standards for sustainable production
Our ethical standards concerning social responsibility and the environment, and the principles of the UN's Global Compact, are fundamental to how we address the environmental and social challenges relating to biofuels.
