StatoilHydro has a longstanding tradition as a pioneer in use of eco-friendly fuels. Biofuels are an important sustainable energy carrier which could contribute significantly to reduction of greenhouse gas emissions by the transport sector.
In an environmental context, bioenergy is considered to be CO2 neutral. CO2 released at combustion is equivalent to the amount of CO2 assimilated by photosynthesis during the plant's lifetime.
High ambitions
Our goal is to be the market leader for biofuels. We wish to stimulate higher consumption of biocomponents.
As early as 1999, StatoilHydro started sales of biofuels, and today has sales in Sweden, Denmark, Norway, Latvia, Lithuania and Poland.
Biofuels will not replace fossil fuels in the near future, but they could comprise a significant proportion of the total fuel sales; The EU has a target of 10% biofuels within 2020.
Traditional fossil fuels such as petrol and diesel will continue to comprise the major part of total fuel sales, but we are continually working to develop and improve the environmental characteristics of the fossil products we offer.
Opportunities for production
StatoilHydro works actively to strengthen its position in production and sales of biofuels. Recently, the company procured a 42.5% share in a new biodiesel plant in Lithuania. Production at the Mestilla plant will start according to schedule in the autumn of 2007, and will have a capacity of almost 100,000 tonnes biodiesel per year. StatoilHydro will be responsible for marketing, sales and distribution, and this plant will provide supplies to own stations. Linas Agro, the Lithuanian agricultural company, will be the other, major shareholder with 57.5%.
We are involved in several studies and projects to evaluate production possibilities, including a feasibility study in collaboration with Norske Skog on production of biodiesel from wood.
Societal responsibility
We are fully aware of the challenges associated with production of biofuels arising from environmental and societal issues. We therefore believe it is important to secure sufficient information on the various phases of the value chain, so that we can uphold ethical, environmental and societal elements of our work on bioenergy in a viable and responsible manner.
